October 1 2007, 11:20

Metro cash & carry to invest €18-22 mln in construction in Tomsk

Yesterday the representatives of Metro cash & carry and the authorities of Tomskaya region discussed the perspectives of the company's entrance to the local market, Kommersant informs. The company's short-term perspective is to construct a trade center of 10,000 sq. m. of total square; METRO plans to invest €18-22 mln. to this project. According to Victor Kress, the Governor of the Region, the main condition of the company work in the region will be "the promotion of the local producers' products".

The closed-door negotiations between Tomsk officials and METRO delegation were conducted in the Regional State Administration. Andrea Martinelli, Regional Director of Metro Wholesale Trade Chain in Russia and Ukraine, V. Kress, the Governor, and Oxana Kozlovskaya, First Deputy of the Governor, participated in the negotiations.

Oxana Tokareva, the Chief of Governmental and PR Department, told that Metro representatives saw two plots for the trade center construction. According to her information, the company was interested in 5 ha land plots with a good transport accessibility. Mrs. Tokareva has not specified the location of these plots. The group of Metro specialists will make the final decision while being in Tomsk.

According to Mr. Kress, Metro is intended to construct a trade center of 10,000 sq. m. of the total square. The investments should be worth € 18-22 mln. The assortment will include around 30,000 trade items. The Regional State Administration expects the construction to start in the nearest future. To the Governor's opinion, with the account to the issuing of the required documents and the project development, the construction may start as soon as late March and finish in August-September 2008.

According to the provided information, during the negotiations the representatives of the Regional State Administration lobbied the interests of Tomsk food producers. Mr. V. Kress told, the main condition for the company work in the region would be "the promotion of the locally produced items". Mrs. O. Tokareva said that Metro had nothing against this proposal; the company was even interested in cooperation with Tomsk companies. "As a rule, in such cases the share of local producers constitutes 25% of the total volume of the traded foodstuff. The share may be even higher for certain items, bakery products, meat and diary segment, for example", O. Tokareva said.

Alexander Tumanov, the Chairman of Siberia Trade Association commented the future introduction of Metro: he pointed out that "small wholesale traders won't stand the competition, because a new player will set lower prices for the beginning ". "Only large wholesale bases are able to stand the competition as they have own warehouses. For example, wholesale base on Berdskaya Street, "Boston" base that occupies former workshops of "Tomsk Apparature Plant", A. Tumanov said. He thinks, "following the small wholesale traders, small retail shops may be closed as well, because they do not belong to any chain". Victor Prokopenko, the Director of the wholesale base "Boston", sounded more optimistic. "Predominantly small retail traders from the districts of the region will come to Metro trade center. Most probably, the wholesale trade center will be located in the suburbs. Tomsk retail trade has already got used to the delivery service, which considerably reduces expenses. This segment will hardly drive to Metro outside the town", he observed.

However, Tomsk restaurant owners were happy to hear this news. "We have to bring many products, for example seafood, spices, sauces, imported meat, directly from Moscow by own means. If these products will be available in Tomsk Metro cash & carry center for affordable prices, the case will be positive ", Vadym Gnyrya, the Director of Non-Commercial Partnership "Tomsk Restaurateurs and Gastrologists".