Key Retailer Report November 2012 Metro operates on a cash & carry model and started its operations in India in 2003 with two distribution centers in Bangalore. It operates on B2B wholesale concept with vast range of products (food and non food) under one roof. Metro is a modern format of wholesale trading, catering only to business customers. It is a part of German based METRO Group that was created in 1996 through the merger of leading trading companies. METRO Cash & Carry is an international self-service wholesale retailer. It operates across Europe and in some countries of Asia and Northern Africa. The group includes: – – – – Metro / Makro Cash & Carry, the world’s market leader in cash and carry Real hypermarkets and Extra supermarkets Media Market and Saturn, Europe’s leader in consumer electronic retailing Galeria Kaufhof department stores Website: www.metro.co.in Contact Information (buying office) Metro Number 26/3 Industrial Suburbs A Block, Subramanian Nagar, Ward No-9 (Yeshwanthpur) Bangalore 560055 Karnataka India Tel: +90 80 22192000 Mr. Rajeev Bakshi, Managing Director Email: Rajeev.bakshi@metro.co.in Background Information Year Established: Metro opened its first store in India in 2003. Store Locations: The company has 11 stores stores across Bangalore, Hyderabad, Kolkatta, Mumbai, Ludhiana, Jalandhar, Jaipur and Delhi. Average Store Size: Metro stores are of an average size of 40,000 sq. ft. plus approximately 4300 sq. ft. of an open market area selling commodities outside the store in the early hours. Type of Store: Cash & carry Position within the Market: Metro is positioned to target wholesalers and customers from hotels, restaurants and cafes. The stores ensure availability of products in required quantities. The stores have extended business hours and are opened 7 days a week from 6 a.m. to 10 p.m. (Continued on back) Target Consumer: Metro operates on B2B model catering to small traders and institutional clients like hotels, restaurants and corporations who are license holders. Stores and Products Product Categories: Food: The stores offer around 8,000 food items. Non-Food:The store offers a wide array of over 10,000 non food items including: – – – Office equipment Home electronics Home textiles – – – Media / Accessories Housewares & home décor Toys & sport Pricing Strategy: With huge purchasing power and efficient operations, Metro aims to provide quality products at the best prices to wholesalers. Quality/Design/Branding Strategy: Strict quality checks and modern storage technology including cold storage ensures the best quality. Company Brands & Private Labels Sold: Metro has its own brands with brands available in India including: ARO (all categories of products), Quality Products (hotel & restaurant products), Lambertazzi (leather products), Sigma (office), Tarrington House (home textiles), Alaska (household appliances), Active (sport products), Authentic (apparel) and Varesa (housewares). Key Marketing Tools & Promotions: Every two weeks, the dealers receive the catalog, METRO Mail, with over 300 offers for business at the best wholesale prices as well as instant alerts through email and SMS. Metro gives cash or credit refund for the products returned within 7 days from the date of purchase in the original packaging. All purchases made at Metro come with a warranty that entitles customers to free services, repairs or exchanges. Metro has set up a dedicated supply chain channel for hotels and restaurants and has signed contracts with hotel chains, such as the Taj and Oberoi, for supply on a national basis. Metro also offers gifts for making purchase over certain value. Direct mailings are regularly sent with attractive special offers, targeting selected customer groups with offers that are focused on their individual business needs. Metro also uses the ‘Bandhan’ training program, which teaches employees how to engage with customers and empower the traditional neighborhood shopkeeper to remain competitive in the changing economic scenario. Suppliers and Sourcing Sourcing: Metro works with with a range of local producers, suppliers and cooperatives to source its products, especially in fresh categories. It also sources from farmers from major farming areas. Expansion plans: Metro is planning to open wholesale stores in Tier-1 and Tier-2 cities and plans to open 8 stores a year with the aim to have 50 cash and carry stores across India by 2016. It is looking at expansion in 40 cities across India. The Metro profile created by: Nagesh Consults, India