Metro tests small cash&carry concept in Russia

Metro Cash & Carry is currently testing a cash & carry concept with smaller sales area in Central and Eastern Europe. The first pilot store in Russia, focusing on fresh food and a higher private label share, is due to be opened in Moscow, presumably in 2011, Lebensmittel Zeitung reported. It is the third country after the opening of its Metro Punct store in Poland (in autumn 2009) and Romania (in April 2010). These stores exclusively service traders and have a smaller sales area of approximately 1,500 square metres and a narrower assortment of around 3,000 products. The normal store size of a Metro Cash & Carry store can be up to 10,000 square metres. The pilot store in Moscow is expected to be the first of many in Russia.

Outlets in large cities will have a sales area of approximately 3,500 square metres whereas stores in smaller cities, with a population of around 500,000 people, will have a sales area of around 5,800 square metres. The latter format will be opened in Siberia by the end of this year. With the new concept, Metro aims to increase its store density and penetrate inner-city locations to gain new customers and consolidate its market position.

According to a Planet Retail interview with Metro, the new concept offers the typical benefits and services given to commercial customers, including promotional offers, loyalty programmes, member card access and specialised consultancy. The concept is thought to be a good fit in countries with a high number of small independent retailers and kiosk operators, with countries that could follow in the future thought to include Czech Republic and Hungary but possibly also India and Germany.

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