German retail giant Metro Cash & Carry, which operates 23 wholesale outlets is planning on opening between five to six new stores every year in India.
Speaking to Indiaretailing Bureau at India Food Forum 2017, MD, Metro Cash & Carry, Arvind Mediratta said, “At present, we have 23 stores and they are doing extremely well. We are a market leader by far in the Cash & Carry segment. Apart from this we have a very strong sustainable business, as well as great partnerships with our suppliers.”
He further added, “We are opening five to six stores every year. We are opting for thoughtful expansion as each store requires Rs 50-60 crore of investment. And we want each of our store to be successful. So before entering any city, we spend a lot of time understanding the trade area.”
At present, Metro Cash & Carry has 6 stores in Bangalore, and will be opening more in Karnataka, Andhra Pradesh, Telangana, Maharashtra, Gujarat, Uttar Pradesh and Delhi/ NCR.
“We have been in India since 2003. We understand the market very well and now our focus is to make sure we accelerate as our foundation is now very strong and we have identified certain states where we are present and where we will further open new stores,” revealed Mediratta.
“We are opening stores every two months. Last year we opened five stores – one in Delhi, one in Surat, one in Lucknow and two in Bangalore,” he said, adding, “We have only one format which is 50,000 sq ft box and we need 3-4 acres of commercial land and every store employees 300 people.”
The wholesaler has a strong base of customers across the country, including small and large kirana stores, entrepreneurs, small businesses, offices, companies and institutions, as well as hotels, restaurants and caterers, with a focus on kirana stores, hotels, restaurants and professionals.
“India is a land of opportunity and we believe that there is lot of potential because there are at least 1 crore kirana stores and lakhs of hotels, restaurants and self-employed professionals,” Mediratta told Indiaretailing Bureau.
Presently, India is among the four focus markets of Metro group for future expansion. The other three are Russia, China and Turkey.