Metro Japan rolls out network in Tokyo

Metro Group’s Japanese subsidiary Metro Cash & Carry Japan KK, said it plans to open eight new cash & carry outlets in the Tokyo metropolitan area in the next two years. On the longer term it will establish a presence in regional cities.

Metro Group operates about 2,400 outlets in 30 countries. Its main formats and banners are cash & carry (Metro/Makro), hypermarkets (Real), supermarkets (Extra), consumer electronics centers (Media Markt and Saturn) and department stores (Galeria Kaufhof).

Since its market entry in Japan in 2002, three cash & carry stores were openend. By opening new outlets, Metro anticipates strong demand for cash and carry outlets among restaurants and small retailers.

New stores will be modeled after a 3,000 square metre location that was opened in May 2006 in Machida, Tokyo. The cost of opening the new stores is estimated at around 3.3 billion yen (US$29 million) each.

Compared to its stores in other countries, Metro’s Japanese outlets are relatively small which suits local needs. Metro group aims to fine-tune the product lineup and services to local preferences. For example, a larger number of items will be offered in smaller lots than at stores in other nations, and the fish selection will be changed to suit Japanese consumers.

“We analyzed the sophisticated Japanese market and consumption habits very thoroughly and see a great potential for the wholesale business of METRO Cash & Carry,” said James Scott, Regional Operating Officer METRO Cash & Carry Asia. “Within the last years, we continuously adapted our concept to the special needs of our customers in Japan. Now the course is set and we are very confident that the expansion will proceed successfully.”