Germany Metro set to open 6 stores in Indonesia

"Landep News"

German wholesale retailer, Metro Group, finally made a step to enter the Indonesian market which is considered to have the largest economy in Southeast Asia. Metro will open a self-service wholesale business called Metro Cash & Carry by 2012

“Asia is clearly represented a dynamic growth and potential for global businesses. That is why the Metro Cash & Carry is currently focused on expanding rapidly throughout the region,” said Metro Group CEO Eckhard Cordes in a press release.

In Indonesia the Metro Group will cooperate with Indonesian company Sintesa Group. As an initial expansion, the company would target a number of areas in Java by next year.

Germany Metro set to open 6 stores in Indonesia

“We will begin in Jakarta, Surabaya and Bali for the first three years. So the initial focus is on Java,” said Shinta Widjaja Kamdani, as Managing Director of Sintesa Group, in Jakarta, Monday (13/06/2011).

Metro Group will invest USD 430 million in the first three years to open 18 stores. Six stores will be opened in Jakarta area (4 stores), Surabaya (1 store), and Bali (1 store).

According to Shinta, store placement will be decided from survey they conducted, which takes into account the number of hotels, restaurants, and target market. “Now is pushing the button time. We are just signing now (with Metro) but we have started this process a while back” she said.

The entrance of Metro Cash & Carry to Indonesia will add a new dimension into the Indonesian hyper market dominated by the French company Carrefour and Giant.

Shinta mentioned that Metro do not consider those large retail companies as a competitor. “Because this really a new concept that has never been in Indonesia,” she added.

The target is to have their store filled by a lot of fresh products with cooperation with farmers. “So they (Metro) will go beyond simple concept of to sell,” she said.

In essence, she continued, the company will work with SMEs (Small and Medium Enterprises). Including with national banks like Bank Mandiri and BNI.

Indonesia will become the 34th country where the Metro Group is present and a member number 31st in an international portfolio of Metro Cash & Carry which includes 700 stores all over the world.

In the past 15 years, Metro Cash & Carry has established 80 networks in five countries in Asia, such as China, India, Japan, Vietnam, and Pakistan.

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