What is Brief History of Metro Company?

How did METRO AG transform into a wholesale powerhouse?

From a 1964 cash-and-carry pioneer in Mülheim to a digital-first wholesale leader, METRO AG reinvented its model to serve professional customers globally. The 2022 sCore strategy accelerated a shift toward multichannel wholesale and deeper HoReCa focus.

Founded by Otto Beisheim, Metro Cash & Carry introduced high-volume self-service wholesale; today METRO operates in over 30 countries with about 89,000 employees and reported sales exceeding 30 billion euros. Read more analysis: Metro Porter's Five Forces Analysis

Founding Story: METRO began during West Germany’s economic boom when Otto Beisheim opened the first Metro Cash & Carry on November 8, 1964, targeting traders and restaurateurs with a self-service wholesale model that cut credit and delivery costs.

Founding Story

Otto Beisheim launched Metro on November 8, 1964, backed by the Schmidt-Ruthenbeck and Haniel families to scale an American-inspired Cash & Carry concept that served small businesses efficiently.

• The founding addressed a market gap: small traders faced high costs and slow deliveries from traditional wholesalers.
• Initial model: Cash & Carry—customers selected goods, paid cash, and transported items immediately, reducing operating costs.
• Early product mix prioritized non-perishable food and basic household goods to be a one-stop shop for local traders.
• Founders funded expansion mainly via private capital; Haniel’s logistics expertise enabled rapid procurement and supply-chain setup.

Key facts and milestones: Metro Company history shows the first location opened in Düsseldorf on November 8, 1964; by the late 1960s Metro expanded to multiple German cities, reaching over 10 outlets by 1970 and entering international markets in the 1970s; early revenue growth averaged high-volume, low-margin sales supporting rapid scale.

Operational detail: the Cash & Carry model eliminated credit risk and delivery costs, enabling a scalable, high-turnover business; founding capital primarily came from private wealth, supplemented by logistics partnerships that lowered procurement costs and improved inventory turnover rates.

An anecdote: the name Metro was chosen to evoke metropolitan scale and modern efficiency, signaling a break from family-run distributors and aligning with a vision for nationwide and later international expansion.

For analysis of how that model evolved into modern revenue streams and distribution, see Revenue Streams & Business Model of Metro

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Following the success of the Mülheim location, Metro entered a phase of rapid domestic and international expansion, establishing wholesale cash-and-carry formats across Europe and beyond. This growth laid the foundation for a diversified retail group that would evolve through major mergers and global market entries.

Netherlands and Makro launch

By 1968 Metro expanded into the Netherlands via a partnership with SHV Holdings, launching the Makro brand and marking the start of its international footprint. This move exemplifies the Metro Company timeline of strategic alliances to enter new markets.

1970s–1980s European expansion

Throughout the 1970s and 1980s Metro entered France, Italy and Spain, scaling the wholesale model across Western Europe and reinforcing the Metro Company history of pan-European growth.

1996 merger and formation of METRO AG

In 1996 Metro Cash & Carry merged with Kaufhof Holding AG and Asko Deutsche Kaufhaus AG to form the publicly traded METRO AG, creating a diversified retail giant and substantially boosting market capitalization and global reach.

Late 1990s–2000s: Eastern Europe and Asia

Metro entered China in 1996 and India in 2003, expanding into high-growth markets; by adapting assortments to local tastes the company supported rapid store rollouts and increased international revenues.

Throughout this period leadership shifted from founder-led management to a corporate structure overseeing thousands of locations; by 2010 Metro ranked among the world’s largest retailers, though rising online specialists later pressured its diverse portfolio and prompted strategic divestments. See a broader industry view in Competitors Landscape of Metro.

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METRO AG’s milestones reflect a shift from cash-and-carry wholesaling to digital-enabled HoReCa solutions, driven by strategic divestments, the 2017 demerger, and post-2020 refocusing on wholesale and Food Service Distribution (FSD) amid rising marketplace integration and logistics investment.

METRO launched DISH (Digital Services for Hospitality), providing digital tools to over 300,000 restaurateurs and signaling its transition into service provision; it also scaled Food Service Distribution to accelerate delivery-first operations. By 2025 METRO targets reflect greater integration of digital marketplaces with physical logistics to drive growth.

DISH (Digital Services for Hospitality)

Platform offering reservation systems, website builders and marketing tools to HoReCa clients, used by over 300,000 establishments.

Marketplace Integration

Creation of B2B marketplaces connecting suppliers and professional buyers, increasing platform sales contribution to overall revenue.

FSD Scale-up

Rapid expansion of Food Service Distribution capabilities during the COVID-19 pandemic to support delivery-first HoReCa operations.

Logistics Digitization

Investment in warehouse automation and route optimization to reduce delivery lead times and improve fill rates.

Data-Driven Customer Solutions

Use of customer data to tailor assortments and pricing for professional buyers, improving basket sizes and retention.

Omnichannel Store-to-Door

Blending physical cash-and-carry locations with digital ordering and last-mile delivery to serve HoReCa clients efficiently.

Major challenges included an unwieldy diversified structure culminating in the 2017 demerger and the near-total collapse of on-premise demand during the 2020 COVID-19 lockdowns, forcing rapid operational redesign. Financially, restructuring required asset sales and cost realignment to restore margins while funding digital and logistics investments.

Organizational Complexity

The conglomerate structure prior to 2017 diluted focus and capital allocation, prompting the demerger to sharpen strategic priorities and improve operational clarity.

COVID-19 Impact

Lockdowns closed restaurants and hotels, collapsing HoReCa demand and forcing METRO to scale FSD and delivery channels rapidly to mitigate revenue losses.

Strategic Repositioning

Sale of the Real hypermarket chain in 2020 reduced diversification but required reinvestment to bolster wholesale capabilities and digital platforms.

Margin Pressure

Competitive wholesale pricing and supply-chain volatility squeezed margins, necessitating cost optimization and higher-margin service offerings.

Digital Transition

Transforming legacy store-centric operations into digital-first marketplaces required significant IT investment and cultural change.

Market Specialization

Shifting focus to HoReCa demanded deeper product assortments and tailored services to maintain relevance against specialized competitors.

For further reading on market focus and customer segments see Target Market of Metro.

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Timeline and Future Outlook: a concise Metro Company timeline from its 1964 founding through key milestones to 2025, followed by strategic targets and projected multichannel growth toward 2030.

Financial targets to 2030

METRO aims for €40 billion in sales and €2+ billion EBITDA by 2030, reflecting aggressive growth assumptions tied to marketplace and FSD expansion.

Multichannel sales mix

Target is a combined 55 percent of total sales from METRO Marketplace and Food Service Distribution, underscoring digital transformation and channel shift.

M&A and buy-and-build

Ongoing 'buy-and-build' strategy focuses on acquiring local delivery specialists to bolster last-mile logistics and marketplace reach.

Private label expansion

Expansion of private labels such as METRO Chef and METRO Professional aims to increase margin contribution and customer loyalty.

For a detailed narrative of the company’s past and operations, read Brief History of Metro

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