The new boss of Metro Group’s Real hypermarket chain was expected to reveal his blueprint for the revival of the hypermarket chain to suppliers this week.

Real chairman Joel Saveuse, who was appointed in August, was due to unveil price cuts for the chain’s 300 leading food products and top 50 non-food products, as well as plans to strengthen its own-label strategy and advertising.

The chain intends to replace several brands with the Real banner and launch 800 Real private-label lines by the end of this year. Real will also launch a daily TV ad campaign to promote products with reduced prices.

Other crucial elements of the strategy include the implementation of a store refit programme and improvement or disposal of underperforming stores. In March, Metro revealed that 40 stores in Germany generated losses of between 40 million (£32.1 million) and 50 million (£40.1 million) last year.

Bernstein senior analyst Christopher Hogbin said that Real has revamped about 60 stores, which are generating a sales uplift of about 2 per cent. “That needs to be rolled out across the entire estate,” said Hogbin.

If the turnaround strategy at Real does not work, Metro may sell the chain, although a time frame is unclear. Hogbin said: “The chief executive [Dr Eckhard Cordes] has come in and said: ‘If we cannot fix it, we will sell it’.”

Real, which has 431 stores, made an EBIT loss of 16 million (£12.8 million) last year, which it attributed to high start-up costs in Eastern Europe.

Separately, Metro Group chief executive Dr Eckhard Cordes said this week that he would mull a flotation of its Media Markt-Saturn retail electronics division and that it would also consider cross-border acquisitions.

Such plans could lead to Media Markt bidding for troubled UK electricals group DSGi, observers believe.