Metro Cash and Carry - The INCONVENIENT Store
By Marryam Chaudhry on Jan 18, 2009 in Corporate Foul-ups, Customer Service
For those of you who think I just made a typing error, I would like to clarify that NO, I did not. I wrote inconvenient and that’s exactly what I meant. Let me tell you why…
For people in the Sub-continent, whenever we hear of an international chain or brand coming to town, we get very excited and can’t wait till the day that company opens its doors to the general public. We keep track of the date of inauguration and then make a deliberate effort to go pay that shop a visit. We are very polite people and make our guest company feel welcome!
But what happens when that company doesn’t reciprocate the courtesy? Well it can tarnish the company’s image and create a lot of angry customer’s! Let me take you on a short INCONVENIENT trip to Metro Cash and Carry-Lahore.
My mom and my 5-year old daughter were eagerly awaiting the opening of this outlet, as it was very near by and Convenient. Well that image was about to take 180 degree turn! They happily drive over and parked the car in a vast parking lot which seems to be almost empty and it was only the 3rd day after the opening. Holding hands my mom and little princess walked up to the huge doors and made their entry. To the right was a cafeteria and a children’s Play Area. Now I don’t know about the cafeteria but the Kids area was in a dark desolate corner that seemed more of a rehabilitation center for juvenile delinquents, than a play area. The best part was that it was totally unattended. Meaning if you drop your child there , it will be sheer luck that you will find him/her there on your way out. You must be thinking “O.K. if it’s that bad then just don’t leave your child there!” AHA!. Well that’s when the next inconvenient factor comes into play.
Avoiding the play area, my mother continues with her grandchild and passing under the security system fitted door is stopped by two female employees and taken to one side for interrogation. They ask her “Do you have a Metro Card?” Even though she is in awe and astonishment by being halted in this manner, my mother replies in negative. The lady then very bluntly tells here “Then you are not allowed to enter the store” .OK now my mother is really taken aback. She asks “why not?” Instead of getting a reply she is shooed off as the lady says “Since you don’t have a card, please go to counter number two”. In sheer amazement at these unfamiliar new rules, she walks up to counter two and ask the individual how she can get this ELITE Metro card. Another series of questions and inquiries take place and my mother eventually finds out that she does not have any of the requisite documents on her that were required to acquire this Elite card. The man on counter two then has a quick change of heart and tells her she can go in anyways.
Now once again while proceeding to enter …..she is asked to stop. “NOW WHAT?” she asks, this time in total annoyance. The lady there tells her that she can enter but my 5 year old daughter cannot, as it is a rule that no one under the age of 10 can enter the store and must be kept in the unattended play area. OK now that was the limit! Enough is enough! So my mother and daughter both turn around to leave and are gain stopped by the same lady and are asked” Ma’am your leaving? Aren’t you going to buy anything?”
My mother is a very calm and gentle creature, but an insulting account like this one tends to bring out the worst in a person. My mother very angrily replies “How am I suppose to buy anything when you won’t even let me enter the store”. The lady then adds fuel to fire and gives her a smile and says ” OK thank you and have a nice day”
THE REBUTTLE
Most of you may think that the entire blame lies with the lack of training of the METRO employees. I beg to differ. My perspective is totally different.
After this insulting incident I went online and did a bit of research on the cash and carry concept. It turned out to be exactly what I thought. The simple meaning that pay CASH and CARRY away your goods. So far, so good.
I then went on to explore the concept and business model of METRO. Here is what I found:
• METRO Cash & Carry announced its operations in Pakistan in January 2006. Since then, it has established itself as a self-proclaimed potential market leader in wholesale. Pakistan opened its first store in the city of Lahore in October 2007 and another one just 4 days ago.
• Then I saw the -10 METRO Cash & Carry principles
• Next is-Who are our customers?- OK now here is the part where things get interesting
Only commercial customers are allowed to purchase at METRO Cash & Carry. All customers are registered and provided with a customer card. This means that the company does not sell to private end consumers.
Now the underlined portion may not seem as something that should be highlighted. But to me this is THE MAJOR FAULT this chain has made. You see, while going all out in advertising their opening, not one single ad mentioned that this store is not for the common man and that their business model was B2B ONLY.
You have to understand that Pakistan is a developing country with many issues, the most dire being power shortage. Not every one has access to the internet and even those who do, like me, are not going to check all the rules of shopping and the requirements before visiting the outlet. The main reason may be that this is the first store of this kind to impose such rules and regulations. It’s no wonder that this chain failed to gain popularity in The UNITED STATES and was a terrible failure. No one in USA will leave their child behind, especially unattended nor will they stand for any kind of un-necessary and insulting hindrance.
The owners claim that their business model is an internationally transferable concept. But that is only true if you make the new country of business familiar with such a concept, as they failed to do here. This is the voice of the common man and it can not be avoided.
The Major Marketing Flaws:
• There is totally no mention, anywhere, that METRO is only for Professional customers and that the common man may not enter.
• The staff, itself is ready to wave this rule and make a card for the COMMON MAN if they have an ID card or business card, which contradicts their own rule.
• Many the private customers have been shopping from the MERTO that opening in 2006 and therefore, if they revoke that privilege on the new outlet, some sort of communication should have been made with the customers to avoid insulting incidents and angry customers.
• The “NO CHILD UNDER 10 CAN ENTER” along with a few other rules, are things that are not even mentioned on the website. How do you expect someone to know this if you don’t tell them? One brings a child and then you insult them by saying they can’t go in because it’s a rule?
• Such rules and regulations are not something welcomed in democratic countries. But if they are necessary, then why are they not displayed outside the premises instead of having employees insult you? Even if you pick up any form of ad that METRO has given for this new outlet, you will not find these rules written anywhere.
• Now how do you expect someone to know all this if you do not communicate this information openly and properly and then gain feed back if this has been understood or not. METRO has gone against all the tenets of proper communication and were too overconfident of the fact that their business model is “internationally transferable.”
• Why is the process of getting a METRO Card so complex, and not instant as mentioned on the website?
Summing this all up you can see that METRO is definitely not a convenience store!
The one in Islamabad is a joke, most of the items you need are not available at one point of time, shelves are not refilled for days. For example Milk Pak 1.0 liter cartons are seldom available and I found Nestle Mango juice 200ml pack carton only once, while all other flavours are available.
My son loves chicken grilled legs and if you go around 7.00 or 8.00 pm, you would not find any.
I think by restricting their business to only one segment of customers does not make any business sense. Metro has already put a min 2,000 rupees shopping limit so they should not have any issues with whether their customer is a shopkeeper or a retail buyer. They should issue entry cards to anybody willing to buy a minimum amount of goods. They should increase their turn over, otherwise they will not be able to recover even their expenses.
About kids under 10, yes it has been annoying for me always, but I think it is good to keep out kids out. Once they allowed kids under 10 before school opening after summer vacations and my five-year old filled up the trolley with all sorts of stuff he could put his hands on and then it was a lot mess for me to persuade him to put back all those things.
But still I like shopping there for bakery, meat, eggs, milk, sugar, car DIY and all the stuff I find cheaper than market.
The digital camera accessories, USB memories and many electronic items are available much cheaper in open market.
Masroor Gilani | Jan 19, 2009 | Reply
Most of you may think that the entire blame lies with the lack of training of the METRO employees.
WE R IN PAKISTAN………WHERE NO TRAFFIC NO DISCIPLINE …EVRYONE IN HURRY!!!!!!
DR KAHLID MAHMOOD SHOUQ | Jan 19, 2009 | Reply
I wonder what impact these chains have had on small general store owners doing business nearby? Have they ended up doing small jobs in these megastores?
Aamer Iqbal | Jan 19, 2009 | Reply
Well Mariam, I am sorry for you, but I am more worried about the Metro, the way they are behaving they wont survive. They are totally confused they dont know how to market it, and the commercial buyers are also not satisfied with there services because they are getting same products at their door steps in same rates so why to travel that much, and that card system is also a flop thing and i am sure after a year they would end up by closing the setup or it would be open for every one. without any card thing.
Munir Hussain | Jan 20, 2009 | Reply
Yesterday we were there at the METRO Defence and wanted to know how to get the card,the fellow waved us to go to the next window…. finallay on the fourth window we were told to get our NIC&NTN copy.not having the requsite copies we asked them how long will it take,the reply was 5 mins.Today on Mon the 9th once i was standing out side in the rain again i was told to go to the next window..and the next.finallay my photo copies were examined by couple of people inside and i was invited in . You can not be issued with a card since you do not have the NTN cert,i showed them the original NTN CARD but they insisted on the certificate.once requested to assign a reason every one was hesitant. Lo and behold the Asst Deptt Mgr Mr Taimur Fiaz walks in and tells me that i can shop at METRO. No card,incidently i booked my 10 Lac COROLLA on the same “card” not the Cert. THANK YOU METRO.
Mobashir Hussain Tarar | Feb 9, 2009 | Reply
Dear Ms. Chaudhry,
It is always pleasant to get some insight into what people think about the world around them. Your opinions on one of the largest private retail and wholesale investors in Pakistan seem quite interesting. But no matter how great or big an investor is, it does not absolve them of their responsibilities to their host communities and especially their customers.
I have worked for METRO Cash & Carry in the past and despite my agreement on several issues that you and your blog’s readers have pointed above such as poor customer service, I would like to offer arguments to your other comments.
First of all, let’s talk about METRO’s business model. METRO has never claimed to be for end consumers, in fact, if you had the opportunity to read any of its advertisements in the newspapers or on the streets, it clearly mentions the words “for professionals”. This concept has been working for METRO since 1964, when its first store opened in Germany. It would be unjust to criticize the company’s business model since such decisions are a prerogative of the business and no one else. Prescriptive statements on whether its business will run or not are therefore irrelevant. That said, I do agree that the registration process is complicated and the staff does need to be a bit more customer-friendly.
Secondly, you point out the rule about not allowing children under the age of 10 into the building. I would like to ask you if you have had the opportunity of seeing the heavy machinery and bulk containers being moved around in the store? Do you think that this is a safe environment for children who tend to run around? Have you noticed that the forklifts have a certain clearance height below which it is fairly difficult and even impossible to see? This rule is only to keep the customer’s children safe from any unfortunate accident such as falling containers or being run over by forklifts. This rule is implemented in every other METRO Cash & Carry store around the world from Turkey to Japan or Morocco to Vietnam whether democratic or not. Every piece of information disseminated by METRO clearly states that children under 10 are not allowed, therefore, one should not complain when the management does not allow children to go in.
Thirdly, you very ardently point out that METRO was not successful in the US. I would like to ask you who passed such false information to you? METRO Cash & Carry has never opened its doors in the United States of America - in fact, it is not even present on either of the American continents.
Finally, I would like to reiterate that METRO does in fact make it clear in each and every communication that it is a wholesaler and is for professionals. Information is given in billboards, on radio, newspaper advertisements and in press releases. If one chooses not to see something that does not mean that it isn’t there.
So let’s just take a seat and relax before we start leveling insults and jibes at METRO. It was never meant to be a ‘convenience store’ so let’s not use the misnomer of ‘inconvenient store’.
Best Regards,
Silal
Silal | Feb 11, 2009 | Reply
Its pretty obvious, the author of this blog has no clue what a cash and carry is. Its not meant for consumers. Its a B2B concept. We have two Metros here in Bangalore India and and I dont think anyone here confuses Metro with a regular consumer store. I can understand ure excitement though. No decent brand would open a store in that extremist land!
John | Feb 16, 2009 | Reply
Whatever you say, Metro is a wonderful company and is helping people in everyway they can. And for your kind information, foreign retailers are not allowed to open retail outlets. Though customers eagerly await their arrival, to shop good quality at a low price, our govt.and kirana stores are hostile when things come to FDI in retailing. And then, while a B2B customer hardly brings his child when he is going to purchase things in bulk. He is not out there for a family outing buddy. He is on business. And if you do not know about the difference between wholesale and retail, kindly search and learn more. k. And one more thing, in USA, it was a failure because it is from Germany and there were already enough players in US including the world’s largest retailer, Wal-Mart. So lemme tell you, the store is not inconvenient at all. Probably the customers were. Let’s blame it on the govt. policies and economic attitude of Indians. Then non availability of skilled personnel is another thing. Our sales personnel seriously lack interpersonal skills. So don’t blame the store. We Indians are like this only!
Vivek | Jul 24, 2009 | Reply
Thank You Vivek. I appreciate your informative comment. I would just like to point out that this article refers to the outlet in Lahore-Pakistan. Nevertheless, you do have a point.
Marryam Chaudhry | Jul 24, 2009 | Reply