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METRO Group: Market entry in Serbia

04.01.2005

METRO Group: Market entry in Serbia

- First Metro Cash & Carry store opened in Belgrade
- Investments of € 15 mio.
- Opening of up to six stores planned

METRO Group today opens its first Metro Cash & Carry wholesale store in the Serbian capital Belgrade. With this move the number 3 international trade and retail group is now represented in 30 countries – the Metro Cash & Carry wholesale division alone with operations in 28 countries.

Hans-Joachim Körber, President and CEO of the METRO Group, stated in Belgrade: "As a result of our strict expansion strategy, we are now the most internationally active retailer and wholesaler worldwide. This is also proven by the fact, that the METRO Group generates more than half of its annual sales abroad."

The Belgrade Metro Cash & Carry wholesale store targets professional customers from restaurants and retail businesses as well as institutional customers. It features approx. 8,500 square meters of selling space and was completed in only three months. The product range comprises almost 20,000 articles. The focus on local suppliers which is typical for Metro Cash & Carry worldwide is also pursued in Serbia. Around 90 percent of the goods on display in Belgrade originate from Serbian producers and distributors.

"We see a great potential and an impressive growth perspective in the Serbian market", said Körber. "We are firmly convinced that the Metro Cash & Carry concept will be successful in Serbia and useful for the country, even more as it contributes to support the local economy."

In the beginning, Metro Cash & Carry Serbia has around 400 almost local employees. Each further store in the country will provide 300 new jobs. The capital investment for the first Metro Cash & Carry Serbia store amounts to € 15 million. Up to six distribution centers are planned in Serbia in the next few years.

With sales of € 53.6 billion (2003) METRO Group ranges among the world’s largest retailing companies. The company has a headcount of about 250,000 in 30 countries and operates around 2,400 locations. The operating business is performed by the six sales divisions which operate independently in the market: Metro/Makro Cash & Carry – world market leader in cash & carry wholesale, Real hypermarkets, Extra supermarkets, Media Markt and Saturn – market leader in consumer electronics centers in Europe, Praktiker home improvement and DIY centers, and Galeria Kaufhof department stores.

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