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    HomeFeaturesInterviewsINTERVIEW Karan Khurana, METRO: “AI is reshaping retail, no question. For us,...

    INTERVIEW Karan Khurana, METRO: “AI is reshaping retail, no question. For us, that means better forecasting, smarter supply chains, and faster, more informed decision-making behind the scenes”

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    “Customer loyalty is increasingly fragile. Fierce price competition and rapidly shifting preferences mean yesterday’s loyalty can evaporate overnight. Today’s customers demand value, convenience and a frictionless experience,” Karan Khurana, CEO METRO Romania told The Diplomat-Bucharest.

    “AI is reshaping retail, no question. For us, that means better forecasting, smarter supply chains, and faster, more informed decision-making behind the scenes. At METRO, we use AI where it makes us sharper: supply chain optimization, price monitoring, inventory planning and even automating back-office processes like HR. Our teams spend less time on repetitive admin and more time supporting customers where it matters.

    But here’s the reality: we’re a B2B wholesaler, and trust is built face-to-face, not by algorithm. You can’t replace genuine partnership with a chatbot. That’s why, as we integrate AI, we keep the customer experience human and personal. AI supports us, it doesn’t replace us.

    Looking forward, AI’s role will only grow, leading to more efficient operations, and stronger insights. But our north star doesn’t change: use technology to empower people, not sideline them.”

    What are the main macroeconomic or consumer confidence factors impacting FMCG and retail business in Romania in 2025?

    Inflation remains stubbornly high, squeezing household budgets and forcing consumers into a low‑cost mindset. At the same time, legislative shifts — especially new fiscal measures — have piled on pressure and spooked long-term planning. The result: shoppers are hunting value first, downgrading brands and delaying non-essential purchases. In short, confidence has fractured, and price/utility now drives purchase decision.

    How are inflation, supply chain instability, or global events affecting product availability and pricing in Romania?

    Inflation and supply chain shocks have exposed structural weaknesses across the market, but for us, these are familiar battlegrounds. METRO Romania has responded with a multi-layered sourcing model and by leveraging METRO Group’s international reach, keeping our professional customers insulated from most volatility. Our ‘Buy More Pay Less’ Program, launched 10 years ago, is more relevant than ever: last year, over 90% of our customer base relied on it for cost efficiency, predictability and stability.

    We serve resellers and HoReCa entrepreneurs, businesses for whom predictable margins and reliable shelves aren’t just nice to have, but existential. Consistency of supply and price stability aren’t marketing lines, they’re the conditions for survival in 2025.

    What challenges are brands facing when trying to maintain customer loyalty in such a dynamic retail environment?

    Customer loyalty is increasingly fragile. Fierce price competition and rapidly shifting preferences mean yesterday’s loyalty can evaporate overnight. Today’s customers demand value, convenience and a frictionless experience.

    METRO Romania addresses this head-on: we deploy strong pricing strategies, maintain a strong private label offering and guarantee product reliability and availability, all backed by digital solutions that drive operational efficiency for the businesses of our customers. But loyalty is not won with assortment and price alone. We invest in our customers’ growth, not just our own.

    For instance, in 2024 we launched the “Vis de antreprenor” communication platform, spotlighting the human stories behind restaurants and LaDoiPași stores, inspiring both our customers and overall entrepreneurial community. Our new “HoReCa Manifesto by <<Vis de antreprenor>> campaign continues this work, bringing real conversations about hospitality — through the perspective of restaurant owners and professional chefs, on TV and digital media. We’re also preparing to launch the fifth edition of our Romania Tourism Guide, yet another tool to support and inspire our partners.

    For us, it’s all about partnership: growing together, even when the market turns unpredictable.

    Which FMCG/retail categories are showing the strongest growth in Romania in 2025?

    Within METRO Romania, operational efficiency is the true growth catalyst. HoReCa businesses facing acute staff shortages and rising cost pressures are actively seeking products and solutions that save time, reduce complexity and guarantee consistency. That’s why we’ve expanded our own-brand portfolio (METRO Chef, Fine Life, METRO Premium, METRO Professional, Aro, Rioba) to meet these demands head-on with tailored, high-quality and efficient solutions.

    What are the key consumer behavior trends shaping the FMCG and retail market in Romania in 2025?

    In our world, where we serve entrepreneurs across traditional retail and HoReCa, the pressure points are clear. Convenience isn’t just a preference, it’s a baseline expectation. Digital adoption has accelerated: our customers now expect seamless multichannel experiences. Price sensitivity is acute, but it doesn’t override demand for quality and freshness; both matter, and customers refuse to trade one for the other.

    Among resellers, we see a clear need to consolidate and future-proof their businesses. That’s why we’re expanding the LaDoiPași franchise (now 2,700 stores), investing in tools that help independent businesses compete on efficiency, flexibility and customer experience

    How is the balance shifting between traditional retail, modern trade, and e-commerce in Romania this year?

    The Romanian retail landscape is in flux. E-commerce is surging, especially as online grocery finally starts to scale, but the pace is uneven, and most shoppers still want proximity and familiarity. Modern trade has headroom, especially outside the big cities. That’s why we’re investing in expanding our LaDoiPași franchise into rural and semi-urban areas, where the demand for accessible, modern formats is real and growing.

    When it comes to e-commerce, for METRO, the online space is a different game. We’re all-in on B2B, serving traditional traders and HoReCa professionals, so we’re not competing for last-minute household orders or impulse clicks.

    Our customers plan ahead, stock up and run businesses. They need an online platform built for reliability and control, not just convenience. That’s what M.Shop delivers: 24/7 access, flexible ordering, and real-time inventory, so entrepreneurs can manage their operations on their terms. For our customers, online isn’t about impulse; it’s about staying in control. That’s where we focus, and that’s where we win.

    What is the impact of AI technologies in FMCG and retail in Romania and what to expect in the future?

    AI is reshaping retail, no question. For us, that means better forecasting, smarter supply chains, and faster, more informed decision-making behind the scenes. At METRO, we use AI where it makes us sharper: supply chain optimization, price monitoring, inventory planning and even automating back-office processes like HR. Our teams spend less time on repetitive admin and more time supporting customers where it matters.

    But here’s the reality: we’re a B2B wholesaler, and trust is built face-to-face, not by algorithm. You can’t replace genuine partnership with a chatbot. That’s why, as we integrate AI, we keep the customer experience human and personal. AI supports us, it doesn’t replace us.

    Looking forward, AI’s role will only grow, leading to more efficient operations, and stronger insights. But our north star doesn’t change: use technology to empower people, not sideline them.

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