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24/11/2024
Sunday
24 November 
1970 The United States and the USSR ratified the nuclear non-proliferation treaty.
1970 The Central Committee of CPSU restored the national autonomy of the Kalmyks, Karachais, Balkars, Chechens and Ingush.
1970 Charles Darwin published The Origin of Species - the first edition was sold out in a day.
METRO COMPANY CLOSES UP THE FIRST OUTLET IN RUSSIA
The German company Metro Cash & Carry made a decision to close the outlet in Nizhny Tagil from September 30. This is the first decision of this kind out of 94 Russian hypermarkets of the chain engaged in the wholesale trade with individual entrepreneurs and legal entities. Metro management noted that it was done due to the poor performance of a particular store.
One of ten largest companies doing business in the Russian retail market, Metro announced that it had no plans to open any more retail outlets in the country a year ago. The company is already represented in 51 regions and has not conducted any shutdowns before. At the same time, it was reported that the network is going to change the strategic concept by updating the business. The German retailer planned to spend about ˆ 60 million on this.
Experts note that the company's revenues in Russia have been gradually declining over recent years.
However, the first half of 2020 turned out to be quite successful for Metro, the sales rate steadily went up. Now the business is faced with the task of consolidating this trend and, apparently, the top management made a decision to get rid of the assets that generate losses.
The company's management emphasizes that the shutdown of the Nizhny Tagil representative office should not lead to serious damage to the regular customers of the chain, who were served in the local hypermarket. The majority of clients (the representatives of the professional business, as a rule) will get a chance to purchase goods in the nearest hypermarket located in Yekaterinburg. In this case, all working conditions for them will remain the same.
A more difficult situation may arise for the workers of the closing outlet.
Although the company declares its readiness to support employees and help them find work, it will not be easy to do so in the current socio-economic conditions, which may negatively affect the reputation and social responsibility of the business that Metro has been running in Russia for several years.
