Metro to open 40 stores in China

Metro to open 40 stores in China

SHANGHAI: Metro AG, the German retail and distribution giant, said Monday it will press ahead with plans to invest 600 million euros (US$700 million) to open 40 stores across China in the next five years.

The expansion will add significantly to the company's existing 18 outlets in the east and northeast of the country, while tripling its total investment in China.

"Shanghai (gross domestic product) is forecast to grow more than 11 percent this year ... and it shows the potential for Shanghai especially but also China," company chairman Hans- Joachim Koerber said at a briefing.

Metro, the world's fifth largest retailer, recorded 600 million euros in sales in China last year although operations overall have yet to net profits, he said.

Competition, however, promises to remain stiff as Wal-Mart Stores has piled in with 26 outlets in China, while French retailer Carrefour has opened 39. -- AFP