UPDATE - PAKISTAN: Metro expansion could cost US$288m
Metro could spend up to EUR200m (US$288m) fulfilling its expansion plans in Pakistan, the German retail giant has told just-food.
Metro is to open its first wholesale centre in Pakistan tomorrow (30 October) with a site in the city of Lahore.
The company is aiming to have ten Metro Cash & Carry wholesale outlets in Pakistan. Each outlet would see Metro spend around EUR20m, a spokesman said.
"Pakistan is a very interesting market for us, it has a developing economy and we have experience in similar markets, like India and Vietnam," the spokesman said.
The Pakistan food industry is growing at around 10% a year and the country has a long established food manufacturing industry and strong commodity production.
However, ongoing political instability makes Pakistan a challenging market for Western retailers and manufacturers. Nevertheless, Metro remains calm about any potential problems. "We are not politicians, we are a business company offering products to hotels and restaurants and we already have a wide range of customers."
The move into Pakistan means Metro is now present in 31 countries. Its Metro Cash & Carry operations do business in some 29 countries. A second site in Pakistan will open in Islamabad in December.
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