METRO Cash & Carry in Egypt

Step by step: The market entry into Egypt
Investment boom in Egypt – and METRO Cash & Carry right in the middle. During the last three years external direct investments into Egypt amount to about 32 billion Euros. Germany is one of Egypt’s most important investors among the USA, Great Britain and France. METRO Cash & Carry recognized Egypt’s great economic potential early on and will open its first store in Cairo by late 2009, followed by store openings in other Egyptian metropolises like Alexandria. If all pre-conditions are met accordingly, METRO Cash & Carry aims to open up to 10 stores in Egypt in medium term. In long-term METRO Cash & Carry will open up more than 20 stores in the region.

With its expansion to Egypt, METRO Cash & Carry actively supports the further development of the local industry: Up to 90 percent of the goods in the company’s Egyptian stores will be sourced from local suppliers and producers. METRO Cash & Carry’s target groups are professional customers like hotels and restaurants as well as small and medium sized retailers and service companies. The assortment, services and store architecture are customized to the special needs of this target group. With a footprint of about 7,000 square meters the wholesale stores will offer a wide-ranging and high-quality assortment of around 13,000 food and nonfood products.

Quantity and quality at its best
Goods are always available in a sufficient quantity and up to 16 hours a day. That is only one of the numerous advantages the business-to-business wholesale concept of METRO Cash & Carry offers. Moreover, METRO Cash & Carry wholesale stores stand particularly for the freshness of the food and the high quality of all products. This is guaranteed by efficient logistics and cool chain systems as well as the group-wide quality assurance system.

Best value for money
METRO Cash & Carry is the best opportunity for Horeca customers in their search for better quality of food items. Sourcing for business sake is most convenient as METRO Cash & Carry is offering a complete assortment under one roof.  Shopping becomes faster and more comfortable. Due to the supply chains high efficiency, METRO Cash & Carry can also offer its products at a better price-performance ratio than many competing companies. Since METRO Cash & Carry usually buys a large quantity of goods, the company passes on the thereby achieved price advantages directly to its customers.

Focus on responsibility
130 new jobs – that is only the result of METRO Cash & Carry’s head office opening in Cairo. On average, a new METRO Cash & Carry store employs 250 people from the local community. In addition, the company takes responsibility for its trading partners: In Asia, METRO Cash & Carry already offers a training program for local farmers. The farmers learn, for instance, how to harvest and pack their fruits and vegetables more effectively. Through the trainings the producers become more competitive and draw higher profits. Thus, the expansion of METRO Cash & Carry is a benefit for each country’s national economy. This kind of social commitment is an integral part of METRO Cash & Carry’s corporate culture.

Strengthen the trading infrastructure
In Egypt essential standards like cooling, packaging, transport and storage are often improvable. In the country goods are normally delivered by way of several middlemen. That takes a long time and often a part of the goods are spoilt when finally delivered to local traders.

METRO Cash & Carry supports the Egyptian economy in establishing European standards in the process chain: For example to secure a better transport, the company offers its customers an assortment of cooling bags. The METRO Group has long years of international experience in setting up modern wholesale standards and logistics. Thus costs for transport and storage can be reduced to a minimum, the benefit of the Egyptian retailers rises.

At METRO Cash & Carry professional customers will find all Egyptian specialties under one roof

In Northern Africa, Egypt is one of the most attractive countries to go for tourists from all over the world. At the same time, Egypt has become one of the most vibrant business hubs in the Middle East. Thus, the number of potential METRO Cash & Carry customers from guest related businesses (Horeca) who operate hotels, restaurants, coffee shops, modern fast food places and snack bars is enormous. Moreover, the METRO Cash & Carry concept offers for the professional customer group of traders the best purchasing opportunities. Thousands of small trader shops offer the basic supply for the population in the big cities like Cairo and Alexandria. In Egypt, the end consumer normally buys its dry food from Mom & Pop shops or General Stores in the neighbourhood, fresh food from fruit and vegetable shops, while so called haberdasheries are offering tobacco products and soft drinks. So far, they all mainly source from wholesalers with limited assortment and intransparent pricing.

At METRO Cash & Carry all professional customers will find the typical Egyptian food assortment at best hygienic standards as well as a wide range of non-food articles at top quality under one roof. The focus in the food department will lie on fresh food such as fruit and vegetables, fresh meat and fresh fish.

The Egyptian cuisine is very creative, colourful and tasty thanks to many fresh ingredients. For example, okra or molokhiyya, a spinach-like vegetable, aubergines, cucumbers, as well as fresh dates, figs and apricots are very popular. Egyptian cuisine favours lamb and beef for kebab dishes and local fresh fish. But also salted and dried fish is one of the traditional Egyptian specialties. Modern as well as traditional Egyptian cooking styles favour all assortments of herbs and spices and olive oil. As staple food serve lentils, beans, rice, chickpeas and thin baked bread called aish. Chai, a specially seasoned tea, and Arabic coffee are very popular, too.

Of course, local sourcing of fresh and dry food plays an important role for the METRO Cash & Carry business concept. Up to 90 percent of the goods available will be sourced locally.