Small is beautiful. In case of German wholesale retailer METRO Cash and Carry India, it is not just beautiful, but small is bigger and better. After all, it’s this small, strong chain of over 8 lakh traders and kirana store owners which is crafting success for the wholesaler giant. In fact, it’s this ‘small chain’ that is driving the company’s billion-euro-revenue dream in India.
The Bengaluru-headquartered multinational reported 11 % increase in sales at Rs 6,140 crore for the financial year ended December 2017-18, announcing it turned profitable 15 years after it entered the India market. In 2018-19, the German company announced it turned profitable for the second year in a row with 10 % increase in sales, with Rs 6,755 revenue. According to its filings with the Registrar of Companies (RoC), during the last financial year, METRO posted Rs 217.4 crore net profit. The company expects to continue to grow at high double digits in the next few years.
While a major force that turned tables for METRO Cash and Carry India has been its approach towards kirana stores, whether it was launching SMART Kirana program or simply celebrating Own Business Day, METRO Cash and Carry India has truly benefited from empowering kiranas.
DIGITIZING KIRANAS DRIVES GROWTH
Looking back at how the wholesale giant has grown in the last four years, especially after its current MD and CEO Arvind Mediratta became the honcho, Mediratta is quick to point out that the market has completely changed in the last four years.
“There is a lot more competition in B2B, B2C and online space with online players becoming aggressive and on the other hand, customer expectations have also changed. Customers expect better value and shopping experience even at a kirana store,” he stresses.
This story is from the January - March 2020 edition of Retailer.
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This story is from the January - March 2020 edition of Retailer.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
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