With a population of nearly 80 million people and a rapidly growing economy, Egypt offers great potential for our self-service wholesale”, said Frans W. H. Muller, Member of the Management Board of METRO Group and CEO of Metro Cash & Carry International.
The announcement was made during a joint press conference with the Egyptian Minister of Trade and Industry, Rachid M. Rachid, in Sharm el Sheikh.
With this move, the company will take an important step in the growth region Middle East and North Africa while at the same time underscoring its position as the most international company in its market segment.
“By entering the Egyptian market, we are consequently pursuing our international expansion strategy and taking an important step into the very promising region of the Middle East and North Africa.”
Once all requirements for such a market entry have been clarified, the first Metro Cash & Carry wholesale store could be opened in Cairo in late 2009.
In the medium term, the company sees a market potential of up to 10 stores in Egypt with an investment volume of around €15 million each.
“We hope that we will be able to roll-out our business across the country as fast as possible”, said Frans Muller.
Egypt will be the 30th country in which Metro Cash & Carry operates. Due to the fact that the name Metro is already in use on the Egyptian market, the German wholesaler is likely to enter the country under its brand “Makro”, which is already well-known in several European countries.
In the long term, Metro Cash & Carry estimates an overall market potential of more than 20 wholesale stores in Egypt. Each wholesale store will create more than 250 jobs and more than 100 additional positions will have to be staffed in the Egyptian head office.
“In Egypt, we will invest in the further establishment of modern trade infrastructures and thereby contribute to the positive economical development of the country. 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.”
Metro already buys Egyptian fruit and vegetables for export to the European market but its presence in Egypt will bring it closer to Egyptian farmers and fishermen, Muller said.
The company has a headcount of some 280.000 employees and operates over 2,200 stores in 31 countries.
The Group’s performance is based on the strength of its sales divisions which operate independently in their respective market segment: Metro/Makro Cash & Carry – the international leader in self-service wholesale, Real hypermarkets, Media Markt and Saturn – European market leader in consumer electronics retailing, and Galeria Kaufhof department stores.
Source: Arabian Business