Metro to step up pace of expansion

Metro China has 79 stores in 55 Chinese cities, with 10 opened this year. The company now plans to open more stores next year. SUN XINMING/CHINA DAILY

German store chain charts plan to unlock full potential in China, open more outlets

German wholesaler Metro Cash & Carry will accelerate the pace of its expansion in China by tapping into the full potential of its various multi-channel businesses through various initiatives, the company said on Monday.

As part of its efforts to speed up the expansion, the company has inked strategic agreements with Luohe Shuanghui Logistics Investment Co Ltd and Shanghai Dah Chong Hong Logistics Co Ltd to upgrade its cold chain logistics management capabilities. The cooperation will extend to more than 5,000 Metro products like fruits, vegetables, frozen foods, dairy products, bean products, meat, and fish and cover all its stores in China.

"The partnerships will help enhance our cold chain logistics management capabilities and allow us to provide better quality and safer products to customers with higher efficiency," said Jeroen de Groot, president of Metro China.

Zhang Yayong, general manager of Luohe Shuanghui Logistics Investment Co Ltd, said: "We can cover multiple routes by using our strong transportation capabilities and also provide vehicles best suited for various product types. The professional-grade, dual-temperature vehicles, along with experienced personnel, will help Metro shorten delivery time and ensure product freshness and quality apart from enhancing efficiency."

Through its partnership with Shanghai Dah Chong Hong Logistics, Metro China will be able to get access to temperature-controlled warehousing that ensures food safety and quality.

Metro China officials said that the company is planning to build new distribution centers in major cities of Central and Western China, in addition to the existing facilities in Beijing, Shanghai and Guangzhou. These efforts, the company said, will help decrease delivery time, optimize supply frequency, ensure product quality and freshness, reduce order cycles and help respond swiftly to customer demand.

"We are confident that the enhanced capabilities under the partnerships will support our expansion, as well as facilitate our multi-channel strategy in China by serving e-commerce and food service delivery channels, in addition to cash-and-carry stores," said de Groot.

Metro China has 79 stores in 55 Chinese cities, with 10 of these stores having opened this year. It will open more stores next year, de Groot said without specifying any number.

De Groot said the retailer will also look to actively develop other business channels in China, such as e-commerce, welfare and gifting, franchise and food service delivery to grow into a leader in multi-channel businesses.

In addition to updating its own online platform, Metro China has also teamed up with other e-commerce platforms, such as shequ001.com, through which local residents can order products from the large merchandiser.

He said the company is also in talks with the e-commerce giants Alibaba Group Holding Ltd and JD.com, to expand more channels in the future.

Besides, the company is also exploring the franchise business model in the country with a pilot convenience store that is undergoing trials.