METRO Cash & Carry announces market entry into Egypt

Sharm el Sheikh / Duesseldorf, May 18, 2008 – Today, the international leader in self-service wholesale, METRO Cash & Carry, announced its market entry into the Arab Republic of Egypt. With this move, the company will extend its store network to 30 countries and thus underline its position as the most international player in the industry. The wholesaler exclusively caters for professional customers and small and medium-sized businesses.

“With a population of about 80 million people and a rapidly growing economy, Egypt  offers great potential for our business-to-business self-service wholesale“, said Frans W. H. Muller, CEO of METRO Cash & Carry International, at a joint press conference with the Egyptian Minister of Trade and Industry, Rachid Mohamed Rachid, on Sunday in Sharm el Sheikh. “By entering the Egyptian market, we are consequently pursuing our international expansion strategy and making an important step into the very promising region of the Middle East and North Africa.”

"We are excited about METRO Cash & Carry's decision to establish operations in Egypt”, said Minister Rachid. “It is a testament to the country's booming economy and a sign of our ever increasing competitiveness. Egypt has for many years now been positioning itself as a regional manufacturing and export hub for European investors looking for access to the vast consumer markets of the region. This decision is a positive step in that direction.” The minister added: “We believe that the local impact of this market entry will make a positive contribution, including improved quality for customers and the upgrade of Egypt's local supplier networks and their integration into METRO Cash & Carry’s global supply chain."

Entry with „MAKRO“

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. 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 up to 10 stores in Egypt in the medium term. The company targets all major cities and economical centres, starting with Cairo and Alexandria, and aims to open its first store in Egypt by late 2009. "We hope that we will be able to roll-out our business across the country as fast as possible", stated Frans Muller. In the long term, METRO Cash & Carry estimates an overall market potential for more than 20 wholesale stores in Egypt. On average, a new METRO Cash & Carry store is an investment of about 15 million Euros (EGP 124 million). Each store employs more than 250 people from the local community. In addition, the head office will create over 100 new jobs.

METRO Cash & Carry’s business is mainly characterised by its target group: hotels, restaurants, caterers, canteens as well as small and medium-sized retailers, institutions, service firms and other companies are the core demand customers. METRO Cash & Carry does not sell to private end consumers; it is not a supermarket or hypermarket chain for private consumption, but a modern form of wholesale for businesses. Customers have to have a business licence and will be provided with a free of charge customer card to access the stores.

The assortment, service and layout of METRO Cash & Carry's self-service wholesale stores are closely tailored to the special needs of professional customers. The stores in Egypt most likely will have a selling space of about 7,000 square metres (approx. 75,000 square feet) offering a comprehensive and high-quality assortment of up to 20,000 food and nonfood products at favourable wholesale prices. Many goods are offered in bulk and multi-packs for large-scale consumption. Hence, professional customers will 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. METRO Cash & Carry also acts like a warehouse for its customers and helps them to improve their cash management. "With this offer, we directly support small and medium-sized businesses by strengthening their competitiveness", said Frans Muller. 

Support of local economy

Up to 90 percent of the goods in the Egyptian stores will be sourced from local producers and suppliers. “This means, we give additional stimuli to the local economy", said Frans Muller. “Moreover, we will invest in the further development of the supply chain and logistics infrastructure. In many growing economies, METRO Cash & Carry implemented the highest standards in product quality and safety as well as in hygiene, cooling, packaging and transport. We conduct farmer and fishermen trainings and transfer our experience to local producers which enables them to enter international markets. All in all, we will create benefits for both, our company and the local economy."

METRO Cash & Carry is represented in 29 countries with more than 600 self-service wholesale stores. With over 100,000 employees worldwide, the company achieved sales of € 31.7 billion in 2007. METRO Cash & Carry is a sales division of the METRO Group, one of the most important international retailing and trading companies. In 2007, the group reached sales of € 64.3 billion. The company has a headcount of more than 280,000 employees and operates over 2,200 outlets in 31 countries. The operating business is performed by the sales brands which operate independently in the market: METRO/MAKRO Cash & Carry, international leader in self-service wholesale, Real hypermarkets, Media Markt and Saturn – market leader in consumer electronics centres in Europe, and Galeria Kaufhof department stores. More information at: www.metrogroup.de.

Contact:
METRO Cash & Carry International
Corporate Communications
Peter Wübben
Schlüterstraße 1
40235 Düsseldorf
Phone +49 (0)211-6886-1392
Mobile +49 (0)151-1511-0116
Fax +49 (0)211 6886-1395
Email: wuebben@metro.de
www.metro-cc.com