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Aims to launch delivery service
POSTED: 11:12 a.m. EDT, April 4,2007

METRO Cash & Carry Co Ltd is negotiating with several third-party logistic companies to launch a delivery service in China as part of its localization strategy to increase competitiveness.

The world's leading wholesaler said it will team up with different partners in different cities to offer delivery if customers need it, Jean-Luc Tuzes, president of Metro Jinjiang Cash & Carry Co Ltd, told Shanghai Daily. The move reflects Metro's decision to be more adaptable to Chinese demand and compete with domestic wholesalers and wet markets.

"Delivery is not a part of our business, but we have seen its importance," said Tuzes."We will not mix our product price with the delivery fees to ensure we are providing the most competitive products for our customers."

The German-based company is also going through other changes to further a localization strategy including cooperating with real estate developers instead of buying the land amid soaring property prices.

China's retail sales climbed 14 percent to US$770 billion last year. Metro achieved 24.1 percent higher sales revenue to 9.37 billion yuan (US$1.21 billion) through 33 stores nationwide. The growth is four times
higher than its global sales growth.

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