- Market entry under brand name "MAKRO"
- Sustainable contribution to local economy
- Two more stores to open in 2010 – Medium-term potential for around ten stores in major Egyptian cities
With the opening of its first store in Cairo under the brand name "MAKRO", the wholesaler Metro Cash & Carry continues its successful international expansion strategy. The store near Cairo will be opened tomorrow under the brand name "MAKRO". Egypt is now the 31st country within the company's ever growing network represented by over 670 self-service wholesale stores around the world. With this move METRO GROUP will be represented in 34 countries: The world's third largest retailer this year again distinctly accelerates its international growth and raised its investment budget from € 1.5 billion to around € 1.9 billion. In total, METRO GROUP plans to open around 95 new stores in 2010 (2009: 80).
"The market entry into Egypt carries strategic significance and we see a great potential for our self-service wholesale operations in this country", said Joël Saveuse, CEO Metro Cash & Carry Europe / MENA and member of the Management Board of METRO GROUP. “We are proud to introduce our internationally successful business concept to this fascinating market and we are equally confident that the unique B2B approach will effectively benefit the professional customers, local community and economy in Egypt".
The first Egyptian Metro Cash & Carry wholesale store located in El Salam City near the capital, offers 7,000 m² selling space and a wide assortment of about 20,000 articles. Around 250 local employees have already been recruited exclusively and trained for their duties. The impetus for the local economy generated by the Metro Cash & Carry investment involves more than just employment. The professional customers can make the most of the wide range of products to strengthen their competitiveness. Domestic suppliers have an opportunity to boost their sales asup to 90% of goods offered at the wholesale stores are sourced locally. Furthermore, the company also invests in the development of the supply chain and logistics infrastructure, the implementation of the highest quality standards and regional farmer training programmes.
The opening of the store in Egypt is a further milestone in strengthening Metro Cash & Carry's international market leadership. Moreover, the inauguration of its first outlet in Egypt effectively indicates the company's interest in further exploring the promising growth region Middle East / North Africa (MENA). If all pre-conditions are fulfilled accordingly – especially the availability of land plots and obtaining the necessary licences –, the company sees potential for up to 10 stores in major cities and economic centres in Egypt in the medium term and for around 20 locations throughout the country in the long term. In 2010 alone, two further store openings involving investments of around € 15 million each are planned.
Metro Cash & Carry's business addresses professional customers. Target groups comprise mainly hotels, restaurants, caterers, canteens as well as small and medium-sized retailers, institutions, service firms and other companies. Many goods are offered in bulk and multi-packs for large-volume purchasing. Hence, professional customers find everything they need under one roof to run their own business – from well-known international brands and attractive private label products to national and regional specialties.