Grocery distributor Metcash reported an increase in net income for 2010, which it attributed to the “steady performance” and “resilience” of its independent retail customers. The group said yesterday that net income rose 6.1% in the year ended 30 April to reach $241 million Revenue was up 7.4% to reach $12.5 billion, while wholesale revenue rose 7.4% to $12.36 billion. “We are pleased to once again announce another creditable result, particularly given the challenging... ...Read more »

Pick n Pay CEO Nick Badminton said yesterday he was “disappointed” with the performance of South Africa’s second-largest grocer and warned about continuing difficulties in the trading environment as he unveiled an 18% drop in annual profits. Badminton said the fiscal year to the end of February had been the “toughest trading year in the group’s history” as it worked to “transform” the business in “an exceedingly difficult trading environment”. “This... ...Read more »

The Australian Competition and Consumer Commission has reportedly abandoned one of the two potential buyers of grocery chain Franklins it nominated in its court bid to block Metcash from buying the retailer. According to The Sydney Morning Herald yesterday (7 April), The Australian Competition and Consumer Commission no longer puts forward Spar International’s Australian business as a competitive alternative owner of Franklins. The ACCC told the court that it had abandoned its submissions that... ...Read more »

The Australian senate has announced an inquiry into the ongoing price war between the country’s major supermarket chains.The price war, which began around Australia Day (26 January), when Coles dropped the price of milk to A$1 (US$1) a litre. Woolworths Ltd, Aldi and Franklins have quickly followed Coles’ lead. The senate inquiry will consider whether the behaviour of the leading supermarkets’ anti-competitive and whether the price reductions will have a negative impact on dairy... ...Read more »

Metcash has said it “welcomes” the court proceedings launched by the Australian competition watchdog to prevent the company from buying local supermarket chain Franklins.The Australian Competition and Consumer Commission has already blocked the move on competition grounds but, with Metcash refusing to throw in the towel, the regulator has sough court action. However, Metcash chief executive Andrew Reitzer said on Monday (29 November) that the wholesaler was “delighted to have the... ...Read more »

Metcash and Pick n Pay, owner of the Franklins supermarket chain, today announced that they have agreed to extend the cut-off date for the proposed sale of the chain to Metcash. Metcash announced that it will “take further steps to proceed with the proposed transaction”, despite the Australian Competition and Consumer Commission’s opposition of the sale. The ACCC opposed the sale of the supermarket chain to Metcash on the grounds that it would create a monopoly on wholesale supply... ...Read more »

The Australian Competition and Consumer Commission yesterday announced that it will oppose the sale of supermarket chain Franklins to wholesale giant Metcash, on the grounds that it would create a monopoly in wholesale supermarket supply in NSW, and make it more difficult for another wholesaler to enter the NSW market. Metcash had announced its intention to purchase the 88 Franklins stores for $215 million, and then onsell them to independent retailers under the IGA brand, retaining supply rights. “Central... ...Read more »

The Australian Competition and Consumer Commission (ACCC) has delayed its decision on the proposed sale of Pick n Pay-owned supermarket chain Franklins to Metcash. The announcement, which was due to be released today, has been pushed back until 18 November. The A$215m (US$203.9m) deal has faced close ACCC scrutiny as the competition watchdog is concerned that the deal would mean Metcash would have “significantly greater unilateral market power”. A Pick n Pay spokesperson said that it... ...Read more »

Franklins today revealed that its parent company, South African based Pick n Pay, has begun preparations to sell its stores via tender individually, or in groups, in the event that the ACCC blocks its planned sale to Metcash. Pick n Pay said it would work with the ACCC to secure approval of the proposed sale as a preferred option, and said it was confident of its arguments to persuade the ACCC to approve the transaction. At the time of the sale, Metcash announced plans to onsell on the acquired Franklins... ...Read more »

The sale of grocery retailer Franklins to local rival Metcash has come under scrutiny from the Australian Competition and Consumer Commission (ACCC) which said it has serious concerns about the planned acquisition. The ACCC yesterday released a statement of issues, which said the proposed acquisition is likely to result in a “substantial lessening of competition in the market for the supply of packaged groceries to independent retailers in NSW”. The competition watchdog said it was particularly... ...Read more »