Metro Cash & Carry To Triple Logistics Space
Metro Cash & Carry store chain plans to almost triple logistics area once the Metro Cash & Carry store chain plans to almost triple logistics area once the new platform now under construction in Stefanestii de Jos near Bucharest has been completed.
The company currently has two warehouses totaling 3.7 hectares and once the new facility has been delivered, it will have almost 10 hectares of logistics space.
“Metro Cash & Carry Romania currently has two warehouses: one at room temperature and a climate-controlled one. The room temperature warehouse has an area of about 27,000 square meters, and the climate-controlled warehouse an area of about 10,000 square meters,” the officials of the company with 30 stores and over EUR1 billion revenue last year say.
Both warehouses are located near Bucharest and rented from logistics operators.
Modern retailers use two strategies when it comes to logistics. German-held ones usually prefer to buy the land and build their own warehouses, the same as Dutch-Belgian-held Mega Image does, but Metro Cash & Carry does not. On the other hand, French-held Carrefour and Auchan prefer to work with specialized logistics companies and rent space. The same goes for Profi and Selgros. The officials of the retailers who said they preferred to rent explained that allowed them to direct funds to other investments. Investment in a 2 to 3-hectare warehouse usually amounts to EUR20 million, according to the data supplied by companies in this business.
The new warehouse Metro is due to rent from WDP is now under construction in Stefanestii de Jos and takes up almost 6 hectares and will require EUR33 million investment, according to a report of the logistics company. It should be completed in the first quarter of 2020, according to the same source.
Source: ZF 15.02.2019
