Metro aims to open 12 outlets in major Chinese cities

Despite the recent slowdown in China's economic growth, German self-service wholesale retailer Metro Cash & Carry is planning to open at least 12 outlets in China in 2013, following equally fast expansion the year before.

In 2012, Metro opened 12 stores in not only major cities but also second-tier cities, including Zhenjiang in Jiangsu province and Zhongshan in Guangdong province.

"This shows our long-term commitment to China," said Uwe Hoelzer, president of Metro China.

Metro China's sales revenue for 2012 increased 23 percent from a year before to 1.89 billion euros ($2.46 billion). In comparison, Metro Group's global sales only increased 1.7 percent to 32 billion euros.

Despite China's slowing economic growth, Metro China is confident that it can maintain stable growth in the nation.

"We are still talking about GDP growth of 7 percent and the expectation is about 8 percent. So there is still enough growth, which underlines our strategy," said Hoelzer.

He said increasing food safety problems also provide opportunities to Metro China because people in China are paying more attention to food quality, allowing Metro China to grab market share from wet markets, street markets and some international players.

Metro China has established a food tracing system, which allows companies and consumers to monitor every step of the supply chain.

To support its growth, the company said it would pay more attention to a number of sectors in 2013, including consumers, corporate clients and caterers.

Having done business in China for more than 16 years, Metro China has gradually realized that significant synergies can be generated from the retailing sector. Hoelzer said that its retailing business can contribute almost 50 percent to Metro's China sales.

"Both (B2B and B2C) businesses bring us a lot of synergies. We could not survive without any one of them," said Hoelzer.

"The sales revenue generated from the retail business might be the main driver for the company to seek rapid expansion in China," said Peng Jianzhen, deputy secretary-general of China Chain Store & Franchise Association.

In addition, experts said opening 12 stores in one year is not that uncommon in the fast-growing Chinese market.

"Metro's expansion in China was not fast in the past decade compared to many international giants, so opening 12 stores is quite normal," said Peng.

Metro has 63 stores in 45 cities across the country. In contrast, Walmart has opened more than 260 stores in China since 1996.