METRO to Exit Kazakhstan by March 2027, Opening Space for New Foodservice Distributors

METRO AG’s decision to withdraw from Kazakhstan by the end of March 2027 will remove a key international cash-and-carry player from the country’s foodservice and wholesale segment. While the business accounts for only a small share of METRO’s global sales, the exit will reshape local sourcing structures for HoReCa and independent retail, creating both short-term disruption and medium-term opportunities for alternative distributors and suppliers.

All six Kazakhstan wholesale stores and the associated delivery business will be closed in phases after a strategic review concluded the unit could not build a sufficiently strong market position for sustainable growth. Around 650 employees will be affected as METRO phases out operations that generated roughly €143 million in sales in FY 2024/25, equivalent to about 0.4% of group revenue of €32.4 billion. 【turn0search8】【turn0search10】

Introduction

On 2 October 2026, international wholesale food supplier METRO AG confirmed it will discontinue its business activities in the Republic of Kazakhstan no later than the end of March 2027. The decision follows a focused review of the long-term prospects of its Kazakhstan operations, which have struggled to secure a strong and profitable market position despite significant investments and business-model adaptations. 【turn0search7】【turn0search10】

The withdrawal covers all six cash-and-carry outlets and the delivery service that supplies hotels, restaurants, caterers (HoReCa) and independent retailers. While Kazakhstan is a relatively small market for METRO at group level, the chain has been a notable organized wholesale channel for imported and domestically sourced food products, meaning its closure will have a visible impact on local distribution structures and procurement strategies across the foodservice and retail segments. 【turn0search8】【turn0search9】

Immediate Market Impact

In the near term, METRO’s phased shutdown is likely to tighten organized wholesale capacity in major urban centers where its stores are concentrated, potentially raising transaction and logistics costs for HoReCa buyers who rely on consolidated, cash-and-carry purchasing and just-in-time delivery. Competing local and regional wholesalers can be expected to target METRO’s clientele, but integration of new supply contracts and logistics routes may take time.

For suppliers of packaged foods, beverages, frozen products, fresh meat, dairy and fruit and vegetables, METRO’s exit removes a structured route-to-market that combined physical wholesale platforms with professional delivery services. In the absence of immediate like-for-like replacement capacity, some suppliers may initially face lower order volumes or be forced to renegotiate pricing and payment terms with alternative distributors, contributing to short-term margin pressure and localized price volatility in key categories.

Supply Chain Disruptions

The closure of six wholesale platforms and a nationwide delivery network will likely cause temporary dislocation in Kazakhstan’s food distribution chains. HoReCa operators and independent retailers may need to diversify procurement across multiple smaller wholesalers, direct-from-importer channels or direct contracts with domestic producers, increasing coordination costs and delivery complexity.

Port and border logistics for food imports are not directly impaired by METRO’s decision, but container flows and truck traffic previously consolidated through METRO’s network will need to be re-routed through other importers and distributors. This could create short-lived congestion at alternative warehouse hubs while new distribution agreements and inventory management systems are put in place.

Domestic producers currently supplying METRO – particularly in meat, dairy, bakery, fruit and vegetables and basic grocery categories – will need to rapidly secure replacement outlets, either through other wholesale chains, regional distributors or direct supply deals with large restaurant groups and supermarket formats. The transition may generate price competition at the wholesale level, even as some end-user prices fluctuate during the adjustment.

Commodities Potentially Affected

• Packaged foodstuffs (staples and grocery) – METRO has been a key consolidator of dry groceries, canned goods and packaged staples, so its exit alters volumes and bargaining power in these categories at the wholesale level.
• Fresh meat and poultry – HoReCa and retail buyers may temporarily struggle to replace standardized carcass and cuts supply programs, impacting price discovery and contract terms for domestic and imported proteins.
• Dairy products and cheese – Organized cold-chain distribution for cheeses, butter and value-added dairy will need to be absorbed by alternative wholesalers, with potential short-term bottlenecks.
• Frozen and chilled foods – METRO’s refrigeration and frozen logistics capacity has supported imports of frozen meat, seafood and processed foods; other distributors will need to step in or expand capacity.
• Fresh fruit and vegetables – Wholesale volumes for both domestic and imported produce will shift to alternative market halls and distributors, with possible changes to grading, packaging and credit terms.
• Beverages (alcoholic and non-alcoholic) – Branded beverage suppliers lose a structured HoReCa route-to-market and may pivot to local beverage distributors or direct arrangements with chain restaurants and hotels.

Regional Trade Implications

METRO’s Kazakhstan unit has acted as a gateway for selected imported food and beverage lines, including products from the European Union, Turkey, Russia and other CIS countries. Its withdrawal will not halt these flows, but import volumes and brand portfolios may be rebalanced towards distributors that focus more heavily on specific origin countries or product segments.

Local wholesalers, regional cash-and-carry operators and large supermarket groups in Kazakhstan stand to benefit as they compete to absorb METRO’s professional HoReCa and independent retail customers. Exporters with existing relationships to METRO Kazakhstan will need to secure new local partners or risk losing shelf and menu presence, especially for differentiated or premium products that depend on professional merchandising and cold-chain capabilities.

Given that Kazakhstan represented only a fraction of METRO’s global turnover, the exit is unlikely to have a material impact on international benchmark prices for major agricultural commodities. However, at the regional level it may influence which suppliers dominate segments such as EU-origin dairy, processed foods and specific branded grocery items in Central Asia’s most open economy.

Market Outlook

Over the coming quarters, observers should expect a transition phase characterized by shifting supplier portfolios, renegotiated contracts and some localized price and availability volatility in Kazakhstan’s foodservice and wholesale retail channels. The impact is likely to be most visible in higher-value, branded and imported segments where METRO had strong category management capabilities.

Traders and suppliers will closely monitor how quickly alternative distributors step in with comparable service levels, as well as any moves by regional chains to expand footprints or consolidate the independent wholesale space. Key indicators to watch include changes in import statistics for processed foods and beverages, wholesale price spreads between domestic and imported products, and announcements of new distribution partnerships targeting METRO’s former customer base.

CMB Market Insight

Strategically, METRO’s exit underscores the challenges international cash-and-carry groups can face in mid-sized emerging markets where scale and differentiation are hard to achieve. For commodity and food-product suppliers, the development is less about absolute demand loss and more about a reconfiguration of the distribution map in Kazakhstan.

Suppliers with competitive logistics and the ability to work through local distributors have an opportunity to gain share as routes-to-market are redrawn. Importers, exporters and traders active in Central Asia should engage early with alternative wholesale and HoReCa-focused partners to secure continuity of volumes and protect brand visibility as METRO phases out of the market by March 2027.