TOPIC:

LOCATION STRATEGY OF METRO CASH AND CARRY

METRO CASH AND CARRY

METRO opened its first cash & carry wholesale center in Pakistan in 2007 & expanded to 5 wholesale centers in a short span of 18 months.

In July 2012 METRO and Makro-Habib combined their wholesale business in Pakistan marking the beginning of a long-term partnership to the mutual benefit of both companies. The company has a simple

and efficient concept of cash & carry wholesale business.

LOCATION OF NEW BRANCH

After a survey, we found one of the best possible location for the METRO Cash and Carry that is “RAIWIND ROAD”. It is right down the southern end of the city. Approximately,15 km away from Thokar Niaz Baig, Lahore.

Apparently, it looks a bit less developed area but certainty contains a huge potential for any big department store.

REASONS OF SELECTED LOCATION

The population of Lahore is spreading thick and fast specially to the southern end of the city.

There are so many famous housing societies like Bahria town and lake city which are trying to make lavish livings which opens up the huge trend of quality shopping.

The cost of land and its registration dues are lower which could save a handsome amount of capital.

The people which are living near this area are financially healthy so they would prefer quality shopping under roof.

PROS AND CONSADVANTAGES: This area contains very wide and comfortable roads which will make life

smooth for the visitors. It will also attract the whole sellers due to less distance. It will help in the development of whole area which will definitely

increase the sales of METRO Cash and carry. The reasonableness of METRO rates will also drag the nearby village

people to shop and at the same time civilized themselves. Availability of labor.

Less populated (under construction) Industrial area Entrance of competitors (e.g. Hyper star)

DISADVANTAGES

CRITICISM

A criticism was raised that as RAIWIND road is a less populated area and due to less population there will be low sales and low profit generation

and the entrance of competitors can be a threat.

RESPOND TO CRITICISMAs this location strategy is for the after 4 to 5 years plan, during this time period the area will become: more populated societies will be developed High value property high class and luxury living standards Developed goodwill Availability of skilled and talented labor Increase productivity