Metro Group CEO Olaf Koch has reaffirmed the company’s commitment to its Chinese business.
The German retail giant recently announced it was considering a withdrawal from several of its international markets, including Japan, to free up capital for the reorganisation of the company in its homeland.
However, Koch insists China remains one of Metro’s most important markets, with the company planning to open 13 new stores in the Asian nation this year.
“China is indeed one of the eight focus countries within our 29-country international portfolio which clearly exhibits our strong commitment to China as well as high confidence in the prospects of the market,” Koch told China Daily.
Since entering China in 1996, Metro has opened 64 of its cash & carry stores across 46 cities.
Last year, Metro Cash & Carry China increased its sales by 23 percent to €1.89bn (US$2.44bn), defying a trend which saw the retailer’s international sales fall significantly.
“We took the initiative to enter the market in 1996 as a pioneer among international retailing groups,” Koch said.
“The steady and rapid economic growth as well as the profound transformation of the distribution and trade sector in China offer Metro exceptional business potential to tap.”
China’s growing middle class, with increased spending power, has been a driving force behind Metro’s continued investment in the market.
Having established footholds in major cities such as Beijing and Shanghai, the group is now placing a greater focus on lower-tier cities with rapidly expanding service sectors.
“Last month we opened a store in Yancheng as our first step into northern Jiangsu province,” Koch said.
“Their distinctive growth provides a great deal of business opportunities for us to further develop.”
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