Metro has provided German retailers with hope that the worst of the country's economic woes may be over.
German retailing has teetered on the brink of recession since September 2001. But after announcing positive first-half results, Metro chief executive Hans-Joachim Korber said that he saw a 'silver lining' in the economic clouds. 'The prospects aren't looking bad,' he added.
Sales at Metro, whose fascias include Praktiker and MediaMarkt, jumped 6.3 per cent in the first six months of 2003 to EUR24.95 billion (£17.57 billion). EBITDA climbed by 9 per cent to EUR868.2 million (£611.2 million).
Korber said recent liberalisation of opening hours could have a positive effect on the economy and that the Kaufhof store business had already benefited from the changes. So far, only Saturday opening has been relaxed, and Metro is keen to see further flexibility.
Metro's belief that labour legislation is also too inflexible has been echoed by government ministers. German labour minister Wolfgang Clement was slammed by religious leaders last month after complaining that German workers had too many holidays.
According to broker JP Morgan, Metro had performed well in a tough economic climate and management comments were a positive sign. 'It's clear that management was confident that the worst was over and that German consumption is in better shape than six months ago,' the broker noted.
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