German retail giant Metro Group has outlined plans to “step up” its international expansion in 2010 after a challenging 12 months for the business.
Metro, the world’s third-largest retailer, said it would invest EUR1.9bn (US$2.38bn) in the company this year in a bid to further boost its international presence.
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“After a period of reduced investments in 2009, we will step up our expansion speed significantly this year,” said CEO Dr Eckhard Cordes. Metro spent EUR1.5bn on expansion in 2009.
Metro saw its net income drop 7% to EUR519m in 2009 after sales fell at the majority of the retailer’s divisions, including wholesale unit Metro Cash & Carry.
The retailer has earmarked Asia for more Metro Cash & Carry stores in 2010. The company runs 44 Metro Cash & Carry stores in China and plans to expand the chain to 50 outlets this year, including a new “city store” format.
“Our goal is to become the market leader in the wholesale segment in China. We are convinced that with our bundle of initiatives we are on a clear way forward to reach this goal mid-term,” said Frans Muller, CEO of Metro Cash & Carry’s Asia and new markets business unit.
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