Retail News India: METRO Cash & Carry, a chain of self-service wholesale stores based in Germany, plans to expand in India with 50 more stores by the end of 2020, the German company said Monday.
India, where retail is closed to foreign direct investment while allowing 100 percent FDI on wholesale trading, currently has 16 METRO distribution centers across 12 cities. If the expansion plan pushes through, India will join Russia, China and Turkey in METRO’s focus areas.
“India has always been an important future growth market of METRO,” said Metro Cash & Carry chief executive Olaf Koch. “We have seen continuous like-for-like growth recently in India.”
“Now we decide to inject extra momentum into our expansion course there to operate 50 distribution centers by 2020. India will join Russia, China and Turkey as one of the four focus expansion countries within our portfolio,” Koch added.
The METRO announcement comes on the heels of news reports that Wal-Mart is planning to expand in India, where the world’s largest retailer is set to open 50 outlets over the next five years.
With the brewing competition, METRO boasts of its 10-year-old relationship with small independent shops locally known as Kirana, which constitutes a vast majority of India’s retail sector. The company has recently launched a variety of customized support schemes on the sales floor and in the field to strengthen Kirana’s competitiveness in the retail market.
Rajeev Bakshi, METRO managing director in India, said the company has been “consolidating market position by translating our nuanced understanding of the customer into daily practices, tailored projects and innovations.”
He added “we are delighted that METRO has established itself as a responsible and relevant member of the community. This provides a firm foundation for us to switch our expansion into the fast lane now.”
METRO GROUP – Founded in Germany in 1964, METRO Cash and Carry offers a chain of self-service wholesale stores across Europe, Asia, and North Africa. The company maintains a presence in 29 countries, with over 700 stores to date. All of METRO wholesale stores boast of a concept oriented towards helping its retailer customers to successfully run their own businesses, and aim to promote local purchasing power and consumer demand.
Source: toptenwholesale
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