Metro and Metro Plus

Metro and Metro Plus are the two flagship banners of giant food distributor Metro when it comes to supermarkets.

As for Sobeys with its IGA and IGA Extra and Loblaw with its Provigo and Provigo Le Marché, the Metro and Metro Plus supermarkets offer a quality shopping experience that includes a wide assortment of fruits and vegetables, meats, seafood and grocery products and, for the “Plus” version, more space with so-called “market” items that mean more choice and an increased supply of local products and prepared foods.

With more than 200 Metro and Metro Plus supermarkets, the Metro banner is undeniably a leader in Québec, present throughout the province. It is also the last food giant in the distribution that is of Quebec origin, Provigo having been sold to Loblaw in the 1990s and IGA being owned by Nova Scotia-based Sobeys.

Type of Franchise

Metro and Metro Plus are managed along three different models: corporate, franchise or affiliate. According to Metro, most supermarkets are operated by independent affiliated retailers (eg the Plouffe family in the Eastern Townships). While they are mostly supplied by Metro , they have the leeway to place orders directly with local suppliers. On the other hand, corporate or franchise stores are supplied centrally so that local suppliers have no choice but to deal directly with the Metro central bureaucracy, which can be an issue for the smallest ones with administrative fees of 7-8% required (source: La Presse) plus a $ 2000 fee per SKU payable just to be listed (whereas before, when dealing directly with retailers, suppliers did not have to pay any fees except for the shelf or floor space occupied in store).

According to La Presse, the number of independent retailers affiliated to Metro has been declining steadily for several years, partly because Metro is buying them back. In the fall of 2009, Metro bought 15 supermarkets from the Guy Pelletier family (who was a big believer and supporter of local products), and in 2011, 9 other supermarkets in the Chevrefils and Martel families (some of which were sold to other retailers).

According to Metro however (2011), 60% of supermarkets remain owned by independent affiliated retailers as the food giant, it is being said, continues to believe in the partnership model with independant owners for the future. According to some experts, however, increased, standardized and automated centralization of supply has become key to lower distribution costs and keep the chain competitive in the face of increasing pressure from giants like Walmart and Costco.

Banner Profile

Names:Metro and Metro Plus
Ranking (banners):Metro Plus: 12th of 63
Metro: 13th of 63
Number of stores:101 Metro Plus
98 Metro
Description:Supermarket banner
Franchisor:Metro
Business Model:Type A) Company-operated store / employee-operated (40% of stores)
Type C) Store franchisee (60% of stores)
Head Office:Montreal
Website:Metro and Metro Plus
Facebook page:Metro mon Épicier on Facebook