Metro plans 2002 expansion

Metro plans 2002 expansion

STUTTGART, Germany (Reuters): Germany's Metro AG, the world's fourth-largest retailer, is planning an expansion drive in Asia next year which it hopes will boost regional sales to 1.8 billion marks (US$841.5 million) from around one billion.

Chief Executive Hans-Joachim Koerber said in remarks made late on Tuesday but embargoed until Wednesday that the group was hoping to open its first stores in India and Vietnam next year, expand its Chinese activities and enter the Japanese market.

"We will be able to generate sales of 1.8 billion marks in Asia in 2002," he told reporters. Metro has Asian sales of about one billion marks at present, derived solely from China.

Koerber also reiterated the group's 2001 forecasts, which target seven percent growth in sales to over 50 billion euros ($45.70 billion) and 10 percent growth in earnings per share.

"We are well on the way to achieving sales of over 100 billion marks ($46.75 billion)," he said. The international share of sales should rise to 45 percent of group total.

Metro is building its own stores in Vietnam and India, but is open to partnerships, while in Japan the group is working together with Marubeni.

"We're looking for suitable sites there at the moment."

As part of its international expansion strategy, Metro is also looking at Egypt and could enter that market in the second half of 2002.