METRO Cash & Carry announces market entry into Kazakhstan

Astana, September 4, 2008 – Today, METRO Cash & Carry, the international leader in self-service wholesale, announced its market entry into Kazakhstan. With this move, the company will extend its store network to over 30 countries and thus underline its position as the most international player in the industry. The wholesaler exclusively caters for professional customers as well as for small and medium-sized businesses.

“With its rapid economic growth and in particular the swift development in the hotel, restaurant and service sector, Kazakhstan offers great potential for our self-service wholesale business“, said Frans W. H. Muller, CEO of METRO Cash & Carry International. “By entering the Kazakh market we are once again utilising our first mover advantage and consequently pursuing our international expansion strategy.”

Vladimir Sergeevich Shkolnik, Minister of Industry and Trade of the Republic of Kazakhstan, welcomed the company’s step: “We have been highly inspired with the decision of METRO Cash & Carry to start its expansion on the Kazakhstan market., said the Minister. “This confirms the dynamic economic development of our country and supports its growing competitiveness. Today, as never before, Kazakhstan is showing its success in the development of its industry and trade sector and is thus attracting the interest of foreign investors who are looking for the extensive consumer market of the country. The decision of METRO Cash & Carry to launch on the Kazakh market is a confident step in this direction. The present development of small and mediums scale enterprises in Kazakhstan will meet the company’s expectations excellently.”  

Together with the Government of the Republic of Kazakhstan, METRO Cash & Carry on Wednesday officially signed an agreement on this investment. If all pre-conditions are fulfilled accordingly – foremost the securing of land-plots and obtaining the necessary licences – the company sees a total potential for 10 to 15 wholesale stores in Kazakhstan. The company is aiming to open the first store in summer 2009 in Astana, the capital of the country. Subsequently, METRO Cash & Carry will extend its store base to Almaty and other business centres of Kazakhstan. On average, each wholesale store constitutes an investment of about 15 - 20 million Euros and employs more than 250 employees from the local community. In addition, the head office will create over 100 new jobs.

“We are convinced that our business-to-business model will contribute considerably to the further development of the local economy in Kazakhstan. Especially our customers and our suppliers will clearly benefit from METRO Cash & Carry’s presence”, said Frans Muller.

METRO Cash & Carry’s business is tailored to the special needs of its professional customers, such as hotels, restaurants, caterers as well as small and medium-sized retailers, institutions, service firms and other companies. METRO Cash & Carry does not sell to private end consumers, but acts as a modern form of wholesale for businesses. Customers have to prove a business licence and will be provided with a free of charge customer card to access the stores.

The assortments, services and layouts of the self-service wholesale stores ensure an efficient and convenient purchasing for professional customers. The stores in Kazakhstan will most likely have a selling space of about 7,000 square metres offering a comprehensive and high-quality assortment of up to 30,000 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. "Thereby, we help small and medium-sized businesses to strengthen their competitiveness", said Frans Muller.

Wherever METRO Cash & Carry is starting business, the majority of the goods in the stores are sourced locally. This gives additional momentum to the local industry sector. Moreover, the company establishes modern supply chains, highest standards in product quality and safety as well as in hygiene, cooling and transport. In many countries, the wholesaler has implemented training programmes for suppliers, including farmers, to ensure an efficient know-how transfer in several emerging markets. 

Kazakhstan is the second market entry, METRO Cash & Carry discloses in 2008. In May, the company already announced its preparation for the market entry into Egypt.

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 largest and most international retailing 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 stores in 31 countries. The operating business is performed by the sales brands which operate independently in the market: METRO/MAKRO Cash & Carry - the 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
Germany
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