CASH & CARRY Cash & carry in the modern retail market MILOŠ RYBA November 2013 MILOŠ RYBA Research Director - Emerging Markets

Contents Channel overview of cash & carry and wholesale clubs Trends in the cash & carry sector Case Study: Metro Group - Metro (Makro) Cash & Carry Conclusion and key takeaways

1. Overview of the cash & carry and wholesale clubs channel

1. Channel overview of cash & carry and wholesale clubs The cash & carry and wholesale clubs (CC&WC) channel is set to grow annually at the rate of around 6.2% in the next five years. The majority of the growth will come from the wholesale clubs format. 2013-2018 CAGR 4.0% 5.2% 14.8% 6.2% 6.7% 6.2% 5.1% Note: e – estimate; f – forecast Source: Planet Retail

1. Channel overview of cash & carry and wholesale clubs Wholesale clubs operator Costco and Carrefour’s hybrid concept of hypermarket / cash & carry will outperform cash & carry operators such as Metro Group in the next five years. 8.2% 2013-2018 CAGR 4.3% 4.5% 12.4% 4.6% 4.3% 5.1% 0.9% 3.7% 29.3% Note: f – forecast Source: Planet Retail