International News - Metro aims to clean up in Chinese wholesale drive

Metro is to spend EUR600 million (£411 million) opening 40 more stores in China over the next five years as it looks to dominate the country's wholesale market.

At present, the German goliath has 18 shops in the country, but intends to expand aggressively as other big global retailers, including Carrefour and Wal-Mart, aim to grow.

However, Metro is opening cash-and-carry stores selling to small businesses, rather than direct to individuals.

A Metro spokesman said that as a result, the retailer does not see Wal-Mart and Carrefour as direct competitors. He said Metro's cash and carry business was unique and the opportunity in China is massive. He added: 'We really see China as one of our main expansion markets, along with Russia. We see China more like a continent than a country and will develop there region by region.'

Earlier this year, Metro set up four regional business units spanning China to enable it to grow quickly in major cities, such as Shanghai and Beijing, as well as in provincial areas.

M+M Planet retail analyst Bryan Roberts said: 'It makes sense for Metro to go down the wholesale route because that is usually the quickest area to develop in an emerging retail market.

'It will insulate Metro from the likes of Carrefour, but I would be surprised if in the long-term Metro does not go into food retail (in China), or introduce MediaMarkt and Praktiker.'