4 September 2008 - METRO Group plans the market entry of its self-service wholesale subsidiary Metro Cash & Carry into Kazakhstan. With this move, the company will extend its activities to 33 countries and thus underline its position as the most international player in the industry. Together with the Government of the Republic of Kazakhstan, Metro Cash & Carry on Wednesday officially signed an agreement on this investment.
"With its rapid economic growth and in particular the swift development in the hotel, gastronomic and service sector, Kazakhstan offers great potential for our self-service wholesale business", said Frans W. H. Muller, Member of the Management Board of METRO Group and CEO of Metro Cash & Carry International. "By entering the Kazakh market we are once again acting as a first mover and consequently pursuing our international expansion strategy."
Kazakhstan’s Minister of Industry and Trade, Vladimir Sergeevich Shkolnik, welcomed the move of Metro Cash & Carry: "This step confirms the dynamic economic development of our country. Kazakhstan is showing its success in the development of its industry and trade sector and is thus attracting the interest of foreign investors."
If all pre-conditions are fulfilled accordingly – like foremost the securing of land-plots and obtaining the necessary licences – Metro Cash & Carry sees a potential for 10 to 15 wholesale stores in Kazakhstan. The company is aiming at opening the first store in summer 2009 in the capital of the country, Astana. On average, each Metro Cash & Carry store is an investment of about 15 – 20 million Euros and employs more than 250 people from the local community. In addition, the national head office will create over 100 new jobs.
"We are convinced that Metro Cash & Carry will be successful and contribute considerably to the further development of the local economy of Kazakhstan", said Frans Muller. "Not only with our business model tailored to the needs of small and medium-sized professional customers but also through constructive co-operations with farmers, producers and suppliers Metro Cash & Carry is giving important impulses for the local economy, especially in growth markets. We source the vast majority of the goods in the stores locally and establish highest standards in product quality and safety as well as in hygiene, cooling and transport."
Kazakhstan is the second market entry, METRO Group discloses in 2008. In May, the company already announced that Metro Cash & Carry is going to enter Egypt.