Metro Cash & Carry will start online sales for business customers by year-end as it looks to expand its market position in the growing segment, a top official of the company said. The company also plans to add more stores to its network.
To woo small kirana shops, the company has also started giving them credit ranging from Rs 1 lakh to Rs 15 lakh on their purchases besides delivering products at their stores.
“In the next 60 to 90 days, before the end of this year, we would be starting our new e-commerce solutions,” Metro Cash & Carry India CEO and MD Arvind Mediratta told PTI.
At present, its sales team visits kirana shops to take orders directly.
“… in future, the customer would not have to wait for them. They would go online, place the order and it would be delivered to them,” Mediratta said.
Metro Cash & Carry, part of German retailing major METRO AG, has also tied up with a company for giving credit to its customers.
“We have a credit solution for our customers. We have tied with a company called Capital Float and we offer them credit for 7 to 14 days,” he said, adding that the company is offering a credit limit of Rs 1 lakh to Rs 15 lakh for small shopkeepers.
When asked if the company would like to go for direct retailing if there is a policy change, he said: “Globally Metro is known as food specialist and wholesale … we believe that opportunity is huge in B2B sales and we want to capitalise.”
He further added: “We do not want to be distracted by retail and now we have a business model which can be stayed back. We are in from almost 14 years and have developed very sound backend infrastructure. It’s now time for expansion.”
The company plans to have 50 stores by 2020. It has already made 24 stores operational and rest 26 would be opened in next two years.
On being asked about location of new stores, he said: “Our focus markets are Karnataka, AP, Telangana, Maharashtra, Gujarat, Delhi NCR and UP.”
Presently, kirana and trader segment contributes around 45 per cent, 15 per cent from hotels, restaurants and caterers (HoReCa) and balance is from institution sales to offices, hospitals, colleges and other establishments.
“HoReCa segment which is presently 15 per cent would become bigger. As the market become more mature and developed HoReCa segment would become bigger,” he said adding that in Europe HoReCa segment contributes over 50 per cent of sale.
The company is witnessing sturdy growth in gifting items this festive season through an approximate footfall of 20,000 customers per day across its outlets in India.
Like this Press Release? Submit yours here.