Metro to focus on smaller stores for India, increase use of technology

By

Isabelle Crossley

Published
May 24, 2019

The Indian arm of the global fast moving consumer goods business Metro Cash & Carry will continue its retail expansion in the country with smaller stores and with a focus on technology as the business continues to value the Indian market. 

After launching in India 15 years ago, Metro turned a profit for the first time in the country last year. The business aims to capitalise on its recent growth by continuing to expand its store count. Although the business has not revealed any numbers, Metro Cash & Carry India’s managing director and CEO Arvind Mediratta told ET Retail in an interview that India is an “important market” for the business and that “you can expect a lot more action both in brick and mortar expansion as well as in our digital play.” 

The last two stores the business opened in Nasik and Ghaziabad measured around 4,000 square feet reduced from its former average India store of seven to eight acres of land. Metro’s new “genesis model” smaller-size store concept will see its stores measure 5,000 square feet or less to adapt to the Indian market. 

Mediratta explained that the business would rather have smaller stand-alone stores than operate within malls moving forward. Finding the right retail formula for the country is also a reason for the business slow growth, Mediratta said.

Metro will also continue to focus on digitising its Indian business. Mediratta explained that the business is “looking at digitalizing our entire ecosystem, not just digitalization of our internal processes but also of how we connect with our customers.” 

Although the Indian market has proved challenging for the business, Mediratta remains optimistic.
“I will say we are very happy to be in India,” Mediratta said. “You will see a lot of innovations from Metro in the times to come, in terms of format, in terms of what we are going to do with our customers and also in terms of the bigger play of digital and e-commerce.”

Metro retails a large range of personal care goods from its stores including shampoos, soaps, baby care products, and body sprays. The business also retails an increasingly large array of cosmetics from brands such as Lakmé.