Metro Group suffers from weak Media-Saturn performance

While Metro Group businesses Metro Cash & Carry, the supermarket chain Real and the Galerie Kaufhof department stores improved their operating results during the first half of 2011, Media-Saturn Holdings operating profit shrank by 81.8 percent to only Euro 22 million (US-$ 31.3 million) on sales of Euro 9.3 billion (US-$ 13.2 billion). As reported last week, Metro Group is working on a strategic realignment of Media-Saturn, which will comprise the integration of the store-based business under the brands Media Markt and Saturn with respective online shops as well the fast expansion of the Internet specialist Redcoon. According to Metro Group, an aggressive low price/low cost strategy is being developed to ensure higher profits in future.