The City Hall Investment and Tender Commission gave the company permission on March 5 to start development of a plot of land in the Primorsky District. Two locations are to be opened in 2003. Constructions of the two stores will begin in August and they will take one year to build. Metro is aiming at rapid implementation of its plans in St. Petersburg and, according to City Hall representatives, has already begun negotiations with local suppliers including Nevskaya Kosmetika, Khlebny Dom and Pekar, which already supply Metro’s Moscow stores. The areas selected by Metro have already drawn their share of retail competition, with two stores on the same scale as Metro, Megamart and Lenta Cash & Carry already operating in the Primorsky District and an O’key store to open soon. The chains that already are operating in St. Petersburg do not seem to be worried by the entrance of a new competitor as they see the city’s retail market as under-served. Metro Cash & Carry also plans to build four new stores in Moscow by the end of the year. The retailer’s total investment in Russia, including the two outlets already built, would total $150 million when the project is completed.
News source: Business Petersburg
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Business news archive for 13 March' 2002.
Business news archive for March' 2002.
Business news archive for 2002 year.