Metro, Germany's biggest retailer, disappointed investors on Tuesday with a lacklustre plan to revamp its Real hypermarkets and a conservative 2008 forecast.
Shares of Metro, a barometer for Europe's biggest economy, fell more than 6 percent to lead decliners among German blue chips despite higher 2007 sales and operating profit.
Eckhard Cordes, chief executive since November, said Metro would turn around its Real hypermarkets division within two years, could sell its Galeria Kaufhof department stores, and may float its Media Markt and Saturn electronics chain.
Rival German retailer Arcandor said it had "noted with interest" Metro's remarks that Kaufhof was not a strategic asset but declined further comment. Analysts say Kaufhof could fetch 2.6 billion euros, including real estate.
Metro operates more than 2,200 wholesale stores, hypermarkets, electronics and department stores in more than 30 countries. It takes more than half its sales outside Germany.
The Duesseldorf-based company said it expects 2008 group sales to grow more than 6 percent without acquisitions and currency effects, and earnings before interest and tax (EBIT) to grow 6 to 8 percent.