First Indian store for Metro
city of Bangalore, the 28th international market for the German
group. A second store will open next month, and the company clearly
sees significant potential in a market whose economy is going from
strength to strength.
Metro is one of Europe's most adventurous retail groups, often among the very first operators in a number of key growth markets.
The German cash & carry group recently opened its first outlets in Ukraine, and has big plans for expansion both there and in neighbouring Russia, but eastern Europe is not its only target.
The company has today opened its first cash & carry outlet in India, in the city of Bangalore to be precise, after three years of careful planning and preparation. India is the 28th international market for the German group, and Metro will accelerate the pace of new store openings there over the coming months.
Hans-Joachim Koerber, Metro's CEO, said that with the strengthening of the Indian economy and rising consumer standards, the time was right for the company to begin operations there.
"One of Asia's largest business-to-business environments also means that there are significant opportunities for Metro cash & carry there," he said. The Metro cash & carry unit targets business customers such as small and medium-sized retailers, restaurants and other foodservice operators.
"These distribution centres will bring together producers, farmers, agricultural co-operatives and manufacturers with the community of traders, retailers and small to medium-sized businesses, all under one roof," said Koerber.
"Internationally, this model has proved beneficial to small and medium sized retailers who are able to source high quality products from a one stop location in the quantities they need at the time they require. By establishing a modern supply chain we also ensure that they are able to get their merchandise at the best prices possible, thereby making them more competitive in their market place."
Metro's plans for India have been in preparation for a long time, with the company first setting up a sourcing company there six years ago. As with all other Metro subsidiaries, the Indian unit will be supplied by local producers, whose products will also become available to other Metro stores elsewhere in the world.
The 6,500 square metre store in Bangalore offers a range of 17,500 articles to local customers, with around 90 per cent of these coming from local producers and suppliers. Some 10,500 of the goods on offer are non-food.
A second outlet will open next month, also in Bangalore, and the group's total investment in the two Indian outlets has been around €35 million.
