METRO's future in Pakistan is positive and strong: Marek Minkiewicz

BR: With over 25 years of rich professional experience in retail sector no doubt you are an expert in retail business in Asia & Europe. Will you please share your journey with us?
MM: Well it has been a wonderful professional journey for me. I loved my jobs, met wonderful people, the overall networking and opportunities across the Asia and Europe. Along the way business challenges always made the journey motivating as challenges materialized into revelries in the longer run. I strongly believe and have experienced that tough times bring the teams together and success binds them, that is how businesses are built; With the people, For the people. There have been no dull moments and so far the journey has been amazing.
It was in 2005 when my 5 years association started with this country as I was assigned to establish and launch Pakistan's first modern foreign retailer under the banner of Makro-Habib Pakistan. Retail environment is growing here yet it is competitive and for a person who likes challenging environments to work, it has always proved pleasurable for me to work in this region with each successful endeavor. Before my joining as Managing Director METRO Cash & Carry Pakistan in 2015, I was working as International Retail & Investment Consultant in Poland.
Previously as CEO/Managing Director Empik Group, other than running projects, I have been actively involved in brand vision to expand merchandise range with adjustment to internet and digitalization developments which is the need of the hour as per current business environment.
Young graduates with entrepreneurial spirit have always inspired me as they have a passion to do something in their careers while teaching is one my treasured passions. It was an honor for me to be a part of LUMS as Executive in Residence where I delivered lectures on retail management to MBA students and supported the set-up of a comprehensive supply chain and retail program. Other than this I have put my share to develop operations division for Makro & METRO as Director Operations in Thailand, Netherlands, Japan, Morocco & South Korea.
BR: Being new to the company, how do you see METRO's business growth future in Pakistan? Looking at Pakistani market what are your plans for opening new branches in Pakistan?
MM: I might have joined METRO Pakistan as Managing Director recently but my association with METRO & Pakistan goes back a long way. METRO Pakistan is still a young country just over 8 years into operations but longevity is how it sees itself in Pakistan. It is one of the thriving markets where we strive to contribute for a win-win-win situation for the company, country and the people of the country. Business environment in this country is very progressive with huge potential to grow which is exactly in line with our business requirement in Pakistan. METRO has a large platform when it comes to doing business in Pakistan with its young population share, skilled labor, entrepreneurial spirit, business friendly laws and regulations, METRO's future in Pakistan is positive and strong. METRO's skills and country's potential are a great combination to build a robust future together.
Being in Pakistan for over eight years now METRO has expanded from 5 wholesale centers to 9 with presence in Sindh, Punjab and Islamabad mainly. Talking about METRO's business growth, the opportunity is immense; however, the focus in the short term is on sharpening and growing our merged businesses like-for-like. For future expansion potential exists- going to Rawalpindi and Multan to name a few - are on the horizon.
BR: How do you rate your business in terms of quantity of products sold and quality of services offered?
MM: METRO is providing not just products to its professional customers (restaurants, cafes, small traders or offices), but also solutions to make the businesses of theses SMEs more successful. With customized support and know-how transfer, we help them thrive in an increasingly competitive market environment. With modern retail on the rise, small traders in emerging markets are facing increasing pressure as consumer demand for better quality and wider variety of goods as a result of growing affluence. The traders Support & Partnership program guide these stores in revamping their business to better meet their customer needs and improve their competitiveness while fully respecting the independence of the shop owners involved. For customers in HoReCa sector, METRO constantly invests in trainings, events and individual consultation to help them improve the overall standard of HoReCa.
BR: What is METRO's contribution towards Employee Development?
MM: With 9 outlets in Pakistan METRO is entertaining a big market of human resource with a head count of approx. 2000 employees locally hired. We pay special attention towards their training and development which is conducted on regular basis. I would proudly like to add here that locally hired and trained employees from METRO Pakistan are also working on good positions in METRO Group in Germany. METRO Pakistan's employees are also invited to conduct international trainings and are handling projects in different countries, where their skills are acknowledged and appreciated. METRO is significantly raising productivity & transfer of foreign skills and technology and therefore contributing to the long-term economic as well as human resource upgrading & development of host country.
BR: What is the thought behind living the METRO Cash & Carry Purpose: the Champion for Independent Business? How is METRO customer friendly? Define METRO's role in a customer's life? How does METRO help its customer thrive in the modern market?
MM: Customer satisfaction is what drives us. In order to build a customer centric organization it is not enough to put slogans on our walls and proclaim that we are now the Champion for Independent Business. We work hard to deliver this promise to our customers. We have formulated the way we want to work with our customers and want our customers to feel that at every touch-point with METRO. Entire thought behind our business is to be customer friendly. We relentlessly seek for customer satisfaction. We inspire with expertise and unique solutions. We build trusted and personal relationships with our customers. We go an extra mile to make it happen because we know that we win when our customers win. That is how we manage to become the champions for independent business. Consistency, sustainability, clarity, trust and an urge to do more are the keys to success this thought in my opinion. You need to understand your customer and constantly strive for providing not just the product but the solutions as well which can enhance their business because this is what in return gives you and business strength and growth. When your goals are clear and you have a passionate, energetic, goal oriented team, you can move mountains. At the end of the day, it is just smart business!
BR: How METRO initiated the success story in Pakistan? What were the first steps METRO Cash & Carry took in Pakistan? Which type of business challenges are you facing and which business problems solving strategies are you putting in place?
MM: METRO has so far invested over 100 million euros in its stores as well as in the supply chain infrastructure hence adding a fair share in strengthening the local trade and industry. We serve around more than 0.5 million professional customers in Pakistan as a whole. As METRO establishes its wholesale business, it also builds up supply chains in emerging markets. Efficient supply chain management generates economic growth, as on one end, local farmers and producers get direct access to the market while on the other end, traditional traders, which still represent the majorities in many markets, get stable supply of high quality goods.
A modern distribution infrastructure links local producers directly to the local market and leads to greater efficiency especially in the food supply chain. This in turn contributes to improving the quality of produce and reducing food wastage. Farmers achieve a better income, while consumers benefit from better product availability and quality, lower prices as well as greater transparency in the supply chain. Domestic consumption in fuelled and inflation on food price is safeguarded, allowing the country to enjoy stability in food supplies in the long run. METRO aims at adding value to the product, starting at the source, ie the farm base, and further along every stage of the supply chain. The result is that output and quality of fresh produce improves significantly, food wastage is minimised and ultimately, all members of the supply chain enjoy a better income and food prices come down. Scarcity of temperature controlled transportation and warehousing facilities also create an impact on availability and quality issues of product.
METRO realized the issue at a very early stages and designed specific training programs for its suppliers to manage a cold chain system and maintain the quality and freshness of product as per international standards.
We conduct regular trainings to familiarise our suppliers with the new techniques in the market which eventually also help them in their business development and help us in maintaining and keeping the bar high. We have a fast and efficient supply chain system. Keeping in view the supply chain infrastructure, it takes on average 7 days that stock is delivered. But METRO took some initiatives to ensure fast, quality and complete stock availability at stores eg. Fruits and Vegetables Collection Centre which is serving store needs within 25-30 hrs with fresh and quality stock, Cross Docking Operations in North and South Region to support suppliers and stores with fast and complete deliveries eliminating intermediaries and associated concerns.
After investing a number of years in this business in Pakistan, we feel that establishing direct supply sources is a big challenge. We want to directly interact with producers and our teams are more and more working together with local farmers & suppliers. Farmer & supplier trainings, upgrading their skill set and better product handling techniques are the areas of our core focus. We strongly believe that developing a sustainable supplier base and strong supply chain is what will bring stability to business & economy and we are driven to achieve that goal.
BR: How active is METRO in competing with the local market?
MM: METRO has a credible history for desired skill set to run business. Being in food business we are very sensitive and focused when it comes to quality of products that reach our shop floors. For this we not only have our own METRO Assessment Systems that we implement globally but also we ensure that local quality standards are met while we train our suppliers and employees as per the international quality standards. We work closely with local authorities and ensure that our customers get the best of what is available in the market at compatible prices. That's how we develop trust and a loyal customer base.
One such recent example is quality halal meat. At a time where hygiene and quality are high on agenda of Punjab government and consumers are well aware and concerned about health and quality standards, METRO Pakistan has recently aligned with PAMCO to launch quality standard labelled red meat. This traceable red meat is slaughtered by PAMCO's approved and licensed slaughter houses to ensure quality and hygiene. METRO Pakistan is now the first retailer in Punjab who has collaborated with the government for this one of its kind sustainable initiative and has gone an extra mile to make it happen for its customers.
Quality labels issued for METRO's red meat are digital and if our customers want to check the shelf life of meat, they can sms the code to government's registered number and will get an exclusive text that says "Slaughtered for METRO by PAMCO Safe for consumption".
This step is not only need of the hour but also advocates METRO's approach towards its customers. This is just one of many initiatives that we will be focusing on sustainable basis at METRO Pakistan. This will be our USP in the local retail market. Chief guest of the launch event was Mr. Naseem Sadiq, CEO PMMCO/ Secretary Livestock & Dairy Development Department Punjab. We specially invited and engaged our potential and existing HoReCa customers for this specific important event for networking, awareness session and meat department tour. Idea behind was to elaborate them about the hygienic measures we take at our facilities to ensure quality of meat starting from procurement till it is displayed for sale at our shop floors. An added feature was tractability, where now the meat at our store can be verified which makes us stand apart from the local meat market. With PAMCO's collaboration we stand as the first and only retailer in Pakistan, who kept the interest of its customers first and took steps to collaborate with the local government to launch this unique traceable meat solution. This has also made METRO a market leader now in this specific domain.
METRO Pakistan:
METRO opened its first cash-and-carry store in Pakistan in 2007 and expanded to five wholesale stores in a short span of 18 months. In July 2012, METRO Cash & Carry 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 merger allowed the companies to combine resources and gain the financial strength to lead and grow in a challenging environment and to gain synergies targeted to generate value for customers and suppliers alike. Today, METRO Cash & Carry Pakistan operates nine wholesale stores in Islamabad, Punjab and Sindh.
What is profile of METRO Cash & Carry:
METRO Cash & Carry is represented in 26 countries with over 750 self-service wholesale stores. With a headcount of about 117,000 employees worldwide, the wholesale company achieved sales of about € 31 billion in the financial year 2013/2014. METRO Cash & Carry is a sales division of METRO GROUP.
METRO GROUP:
METRO GROUP is one of the largest and most important international retailing companies. In the financial year 2013/14 it generated sales of around €63 billion. The company operates around a2,200 stores in 30 countries and has a headcount of around 250,000 employees. The performance of METRO GROUP is based on the strength of its sales brands that operate independently in their respective market segments: METRO/MAKRO Cash & Carry - the international leader in self-service wholesale - Media Markt and Saturn - the European market leader in consumer electronics retailing - Real hypermarkets and Galeria Kaufhof department stores.
An Interview with Marek Minkiewicz Managing Director, METRO?Cash & Carry Pakistan