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Metro AG India sales rise 10% to Rs 6,755 crore

IBEF:  December 31, 2019

World's fourth-largest retailer 'Metro AG', posted 10 per cent growth in net sales at Rs 6,755 crore (US$ 966.52 million) in India in the year ended September, helped by aggressive push for own labels also increased the memberships of kirana stores in market where neighborhood stores account for nine of ten consumer items sold.

As per the annual report, the company had a sale of Rs 6,140 crore (US$ 878.52 million) in previous year.

Dusseldorf-based Metro does not sell the products directly to consumers in India and operating as an organized wholesaler/cash-and-carry operator who sell around 7,000 products to local stores, hotels and catering companies across the array of categories.

"We have focused on building a profitable and sustainable business in India through a culture of customer centricity. Currently, 78 per cent of our customers are repeat buyers who contributed to 86 per cent of our sales in FY2018-19," said Mr Arvind Mediratta, managing director at Metro Cash & Carry India.

Metro entered in India in 2003 and is the market leader in organised trade with 27 stores. The company considers Walmart as its closest rival that too operates as a wholesale but also acquired Flipkart two years ago at US$ 16 billion two years ago. Walmart saw its revenue increase 11 per cent to Rs 4,065 crore (US$ 581.63 million) for the fiscal ended March 31, while net losses almost doubled to Rs 172 crore (US$ 24.61 million).

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.