Metro, the German retail group, has opened its first Metro Cash & Carry outlet in Japan, its first foothold in the Asian country.
The store, which is based in the city of Chiba, near Tokyo, is run through a joint venture with Japan's diversified trading group, Marubeni Corporation. It takes the number of international markets for Metro's cash & carry unit to 24.
"We see a vast market potential for Cash & Carry in Japan," said Toru Tsuji, president and CEO of Marubeni Corporation. "Small and medium-sized retailers, caterers and restaurant operators will be the ones to benefit most from the new store."
Marubeni will supply much of the merchandise sold in the Metro store, and will also act as an advisor to help the German company develop its business in Japan.
"With more than 126 million people and a high level of consumption, the Japanese market offers significant potential to the Metro group," said Metro's chairman and CEO, Dr Hans-Joachim Körber.
Speaking at the inauguration of the store earlier this month, he said: "Our Cash & Carry concept, which targets commercial and professional customers and offers them a high-quality assortment, is very appropriate for the demanding Japanese market. Retail in Japan is open to niche concepts. We are moving into the niche of self-service wholesale in Japan, and we are seeing good perspectives for developing this market segment.
"Our customers will benefit from the Metro Cash & Carry division's longstanding experience in international markets and from the expertise of our joint venture partner, Marubeni."
The store cost Metro around €25 million to build, and has a selling space of around 5,000 square metres. It will carry 14,000 items, of which 90 per cent is food and 10 per cent non-food. Fresh produce makes up 60 per cent of the overall range of items.
Metro said that it hoped the store would attract buyers from the Japanese food retail and catering sectors, and that it hoped to provide a one-stop shop for customers who traditionally would buy their merchandise from a large number of wholesalers.
Metro said it would apply its usual policy of using local suppliers for its Japanese store, and said it planned to procure about 90 per cent of its food range from Japanese suppliers.
Metro is clearly counting on the Japanese market, and has already revealed plans for a further Cash & Carry outlet in the metropolitan Tokyo area next year, with more to follow for 2004.