METRO Cash & Carry lays foundation for its first distribution centre in Pakistan

German self-service wholesaler to have first distribution centre on Multan Road near Thokar Niaz Beg, Lahore

Lahore, 4th April 2007 – METRO Cash & Carry Pakistan inaugurated its first distribution centre’s construction here at Multan Road near Thokar Niaz Beg with the presence of the Chief Minister of Punjab Chaudhry Pervaiz Elahi and the Lahore City District Nazim Mian Amer Mehmood. Also present at the ground breaking ceremony were the executive board of METRO Cash & Carry Pakistan, Mr. James Scott, Chief Operating Officer METRO Cash & Carry International Asia Pacific Region and Mr. Henry Birr, METRO Group’s Vice President International Affairs.

With its opening in Pakistan, the international market leader in self-service wholesale would be expanding its presence in Asia after China, Japan, Vietnam and India. The company is present in over 29 countries worldwide, with sales of over € 30.0 billion in 2006. It announced its operations in Pakistan in January 2006 after positive feasibility findings – with a population of over 160 million people, an improving infrastructure and a progressing economy; Pakistan was identified as a very promising market. The company intends to invest over € 150 million in wholesale centres in all major cities around the country over the next 10 years. Each store will occupy a space of around 10,000 square meters and an assortment of over 20,000 products under one roof including both food and non-food articles, especially focusing on fresh food products.

Cash & Carry wholesale is characterized and defined through its customer base: only commercial customers are allowed to purchase at METRO Cash & Carry, all of them duly registered and provided with a customer card. This means that METRO Cash & Carry does not sell to private end consumers. The core customers are small and medium-sized retailers as well as the hotel, restaurant and catering business and other companies and institutions. For them the METRO Cash & Carry distribution network promises much greater efficiency than the multilayered supply chain. They can purchase the goods more flexibly and at more favourable prices compared with the traditional procurement sources. As a result, METRO Cash & Carry strengthens the competitiveness of its professional customers.

METRO Cash & Carry Pakistan’s first distribution centre will herald a new era of wholesale in the Pakistan. The company’s unique business model focuses on the provision of quality products for its customers at low prices making METRO Cash & Carry the most efficient procurement facility for professionals and businesses (B2B). Furthermore, the company’s business concept complements and enhances the existing consumer goods distribution structures in a country. METRO Cash & Carry strengthens local suppliers by building their capabilities and providing them with marketing opportunities – most of the products offered at METRO Cash & Carry will be produced locally. Therefore, METRO Cash & Carry will benefit the country and strengthen local supply chains as well as the market. In terms of employment, each store would employ over 300 local personnel. A further 150 persons will be employed for auxiliary services as well as 200 people at the company’s country headquarters in Lahore.

METRO Cash & Carry has committed itself to a long term partnership with Pakistan and its people which was echoed in its donations of €200,000 for both the President’s Earthquake Relief Fund and the Chief Minister’s Family Relief Project for Earthquake Victims. METRO Cash & Carry also plans to run a farmer training program intended to build the capacity of farmers by improvements in marketing and supply chain. This will help Pakistani farmers produce export quality fruits and vegetables that will be able to compete in the international market.

Mr. Scott said that the company was highly grateful to the people and Government of Pakistan as well as the Government of the Punjab for their hospitality and support. The governments’ policies on attracting foreign investment have done wonders for the country’s economy. Current economic trends show potential and coupled with the Government’s sound policies, Pakistani people will benefit over the long term. He emphasized that the partnership between METRO Cash & Carry Pakistan and the Government was strong and together the two can bring prosperity to the region and the whole country.