Retailing, Franchising, and Consumerism Business Intelligence in China

New Retail Logistics Deal In China For Metro

German retailer Metro and Shuanghui Logistics, the logistic subsidiary of China's Shuanghui Group, have signed a strategic cooperation agreement, making Shuanghui Logistics the exclusive logistic service provider for Metro's frozen goods.

This is reportedly the first time for Metro to sign a full cooperation deal with a Chinese local logistics enterprise.

Under the agreement, Shuanghui Logistics will provide storage, processing, transfer and distribution services for Metro's frozen and refrigerated foods, fruits and vegetables. Shuanghui Logistics' distribution network will cover Metro's 48 stores in 35 cities around China.

According to Metro, the strategic cooperation is expected to change the traditional complicated logistics system to improve the operating efficiency and to realize a full management of food quality. At the same time, this move will reduce Metro's logistic costs of fresh goods and help the retailer enhance its price competitiveness.

Nicolas De Lavigerie, vice president for Metro China, told local media that with the cooperation with Shuanghui Logistics, they hope to set up industry standards for the Chinese cold chain logistics industry and help improve the services of other Chinese logistic enterprises.

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