Losses leap at Makro after restructuring costs

LOSSES at cash and carry wholesaler Makro have soared from £26.7m to £44.7m as restructuring costs related to the closure of three stores hit home.

The Eccles, Salford-based company, part of international retail giant Metro AG, also saw sales fall by more that £30m to £867.8m in 2009, newly-filed accounts reveal.

The figures for Makro Self Service Wholesalers also show the business shed around 800 jobs in the year, and at the year-end employed 5,086 people.

Despite the increase in losses managing director Hannes Floto was upbeat over the group’s future prospects. He said the results represent a “substantial step forward in our business improvement.”

“The headline figure includes a one-off set of costs associated with a major restructure of our stores and head office as well as the closure of three stores.

“It masks a considerable improvement in operating profit driven by a more efficient organisation, a strategic refocus on the catering professional and a competition-busting offer in fresh.”

He said Makro, which has 30 warehouse depots around the country from Aberdeen to Exeter, has embarked on a “significant, customer-oriented investment programme” this year.

“This has so far included further store refurbishments, nationwide expansion of our customer consultants team, the introduction of a delivery service and the start of a major overhaul of the Makro website,” he added.

Last year Makro closed three loss-making sites in Coventry, Wolverhampton and Swansea with the loss of more than 370 jobs.

Earlier this year the group formed a buying partnership with southern rival Palmer & Harvey called PalMak. The link-up, which was approved by the Office of Fair Trading, will allow the tow companies to negotiate better prices for their customers from suppliers.

In July commercial director Allard Sjollema left the business to join Tesco in China.