Metro, the diversified German retail and wholesale group, has opened its first store in Ukraine, part of its concerted push into core eastern European markets. The company has also announced plans for its first outlet in India later in the year.
The Kiev-based store is part of Metro's cash & carry chain, which is already present in some 25 markets worldwide, and the German group said that it hoped to open a further six outlets there in the medium term.
"The internationalisation of the Metro Group is progressing swiftly. We are the first major international trading company which is operating in Ukraine," said Dr Hans-Joachim Körber, chairman and CEO of the German company.
"With 48.5 million inhabitants and a continuously rising purchasing power, Ukraine holds an enormous market potential for Metro. I am convinced that the internationally successful Metro Cash & Carry concept will also be quickly accepted by professional customers in Ukraine."
The Kiev store will target professional customers from restaurants and commercial businesses as well as institutional consumers. With around 10,000 square metres of floor space, the store was completed in less than six months and will stock more than 20,000 articles.
As with Metro's other cash & carry outlets across the globe, the Ukrainian stores wil place a major emphasis on stocking goods from local suppliers. In fact, around 90 per cent of the goods on display in Kiev originate from Ukrainian producers and distributors.
Metro said that the cost of the Kiev store had been around €15 million. A second store is due to open in the capital later this year, with a total of three planned there in the long term.
Total retail sales in Ukraine reached €6.6 billion in 2002, according to Metro, with some 55 per cent of this coming from food sales. Figures from 1999, also cited by the group, show that there were around 58,000 food stores in Ukraine, but that 99 per cent of them were small stores. While Metro acknowledged that small stores would continue to dominate the market for years to come, it also clearly believes that the opportunities for larger outlets are significant, especially in the capital, Kiev.
The next phase of Metro's international expansion will be in October, when the company plans to open its first cash & carry outlet in India.