Metro Cash & Carry launches proximity store franchise to support traditional retail

Metro Cash & Carry expands its local operations by launching a franchise for proximity stores under the La Doi Pasi brand (Two Step Away). The franchise targets small independent retailers who alongside horeca units represent Metro Cash & Carry’s main customers.

Metro representatives announced that 200 independent retailers have joined the program so far and 80 such stores are already functional. Retailers receive training and consultancy services from Metro Cash & Carry and are able to maintain their financial and operational independence while being part of a national network of stores at the same time.

“The services we are offering as part of the La Doi Pasi franchise are the result of frequent consultations with our customers. La Doi Pasi is the natural outcome of our advisory program for the traditional retail – Trader Support & Partnership – which we began in 2008,” said Marc Carena, customer management director with Metro Cash & Carry Romania.

Traditional retail is estimated at half of the local FMCG retail market in 2011 with a total value of EUR 8 billion. In the past couple of years many small independent retailers have gone bankrupt. By comparison, back in 2008, traditional retail had a 67 percent share of the entire Romanian FMCG retail market, representing EUR 14 billion according to data from Profi. The share of traditional retail is expected to continue decreasing on the medium and long run.

Metro Cash & Carry’s expansion into traditional retail comes after the company saw its local sales go down in the past years. According to the most recent data, the company’s sales in Romania amounted to RON 5.25 billion, down 12 percent against 2008.

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The announcement about the La Doi Pasi franchise comes only a few weeks after Dinu Patriciu, the owner of the Mic.ro proximity stores entered insolvency. Just like the La Doi Pasi stores, the Mic.ro business was designed as a way to revitalize traditional retail.

Simona Bazavan