Blog: Dean BestMetro's wholesale changes to own label

Dean Best | 24 November 2009

"This is like the Eurovision Song Contest!" joked an official from Metro Cash & Carry as the international retailer fielded questions from journalists from Kazakstan to Italy and to Ukraine at the group's Dusseldorf HQ earlier today (24 November).

The wholesaler had shipped journalists from across its international markets to its base in the German city to showcase a project to double own-label sales in three years.

The presence of media from Kazakhstan highlighted Metro Cash & Carry's ability to continue its expansion while navigating the recession. The group opened its first store in the former Soviet state last month and has plans for two more in the coming months.

However, the fact that Metro Cash & Carry had invited journalists from across the world to Dusseldorf also highlighted how important the own-label offensive is for the business.

2009 has been a challenging year for the group and the retailer hopes its own-label push will help it boost profits - no matter how important the company insists its branded suppliers remain to the business.

More own-label sales will mean more sales at higher margins for Metro Cash & Carry. Sure, the project will demand more resources are put into marketing the new own-label lines but, after a turbulent 12 months, the retailer is no doubt planning for a private-label push to prop up earnings.

And, perhaps, fund expansion into new markets in the months ahead.


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