Real

In 2006, Real, the hypermarket division of the Metro Group, took over the hypermarket operations of Wal-Mart in Germany.  Concurrently, Gordon Brothers closed the Wal-Mart stores which were not a part of the Real integration programme.

The Real management team observed the success of the Wal-Mart closure project and the professionalism demonstrated by Gordon Brothers and invited a proposal for the closure of six loss-making Real stores.

The upfront payment, financial guarantee and upside-sharing schemes provided by Gordon Brothers, meant a no risk solution for Real, providing an opportunity that was too good to turn down.  This gave the additional benefit of allowing the Real management to concentrate their energies on the ongoing operation of the remaining stores integration into the estate.

Gordon Brothers, using its indigenous German team, placed consultants in each of the closing stores to manage the project, which covered all merchandise categories within food and non-food.  Advertising was provided by Gordon Brothers at a local level to support the closures and to ensure that the stores were handed over ‘broom-clean’ on the specified dates.

As with many of Gordon Brothers’ Clients who are only divesting non-viable parts of the business, a major focus was on retaining the brand values of the Client so that no adverse media interest would impact negatively on the ongoing store chain.

Financial results were outstandingly successful for the Client and upside-sharing agreements based on the over achievement of initial targets were triggered.

Subsequent to the initial project, Gordon Brothers have remained as strategic partners to Real, and continue to manage inventory clearance projects and strategic store closures.

Reiner Ebling, Logistics Director, Metro Group, said, “Gordon Brothers’ high reputation is very well deserved - they delivered excellent results for us here at Real. We were very pleased with the level of service provided by the Gordon Brothers’ team, and the speed and efficiency with which the closure programme was carried out. Financial results significantly exceeded targets to the benefit of Real.”