Dusseldorf - Metro, the multinational operator of cash-and-carry stores, proposed Monday a merger between its own German department-store chain, Kaufhof, and a struggling rival, Karstadt.

Old-fashioned department stores have suffered from weak sales in Germany as consumers flock to hypermarkets and stores run by retail clothing brands. A merger between Kaufhof and Karstadt would leave only a single, national department-store chain in Germany.

Dusseldorf-based Metro had been trying to dispose of Kaufhof, but idled those efforts when the recession began. It did not specify Monday who would be the proprietor of the new, merged business.

"We are expecting to meet political authorities about this in the next few days," said a Metro spokesman in Dusseldorf, confirming reports of an approach to German Economics Minister Karl-Theodor zu Guttenberg.

The move would need clearance from anti-cartel officials and could also face opposition from unions if it means store closures. Often the rivals are high street neighbours. Karstadt's owner, Arcandor, is seeking government help with loans as it struggles to survive.

Cash-and-carry stores operated by Metro, one of Europe's biggest retailers, span the world from Vietnam to Italy. Metro is also a major operator of mid-price supermarkets.

Analysts have suggested the age of the city-centre department store, selling clothing, housewares and toiletries, is at an end, with consumers preferring the glamour of malls, the convenience of drive-in suburban shopping centres and the low prices of discounters.(dpa)