Grocery and liquor wholesaler Metcash Limited has seen profit fall 7.1 per cent in the six months to October 31, 2008 due to a one-off interest hedging termination cost, but profit after tax and pre non-recurring item rose 12.9 per cent from $86.2 million to $97.3 million. An 8.2 per cent rise in wholesale sales to $5.3 billion was recorded “despite challenging economic conditions and strong price competition in the retail sector”. Metcash Chief Executive Officer, Mr Andrew Reitzer said... ...Read more »
Lenard’s, Australia’s largest specialty meat retailers, has reported an agreement with Metcash to expand throughout IGA Supermarkets nationally. The agreement builds on the success of Lenard’s outlets in IGA shopping centres since a deal was made between Ritchies IGA and Lenard’s in 2000. Lenard’s founder, Lenard Poulter, is adamant the alliance offers potential for both companies, as it gets Lenard’s into a high flow shopping area and presents a point of difference... ...Read more »
Australian independent supermarket operator Foodworks has outlined a new strategy to enhance and manage distribution of their private label offering - with the help of a logistical partnership with CEVA Logistics. The logistics group will be in charge of the supply chain and warehousing of the FoodWorks’ own house brand products, as FoodWorks embarks on a plan to improve their private label range. Foodworks, which operates over 700 supermarkets, is currently involved in a long-term supply agreement... ...Read more »
Australian grocery and liquor wholesaler Metcash maintained earnings guidance of after tax profit of almost $197 million on the back of sales revenue expected to pass the $10 billion mark for the first time. The third largest player in the grocery industry, Metcash came under scrutiny from the ACCC during the recent Grocery Price Inquiry, but Chief Executive Andrew Reitzer was content with the outcome. Pleased with the “creeping acquisitions” proposals and “workably competitive”... ...Read more »
The GROCERYchoice website continues to come under attack, with independent supermarkets, the Federal Opposition and leading retail industry bodies all indicating a lack of support for the scheme. The site, which highlights to consumers the cost of certain baskets of goods at different grocery chains in their area, has been criticised as a “stunt”, “unfair” and too “broad” by some sections, but the Federal Government continues to defend the website. As a host of... ...Read more »
Insight Partners and Citi Investment Research have today released a comprehensive report outlining the impact of unit pricing on retailers, consumers and suppliers in Australia. EBIT (Earnings Before Interest and Tax) are likely to be affected with a drop of about 5% anticipated for retailers and suppliers of packaged goods. The issue of unit pricing has been on the agenda for about a year and has been heavily promoted by consumer advocates CHOICE and Family First Senator Steve Fielding. It was initially... ...Read more »
The ACCC Grocery Price Inquiry held it’s last planned public hearing in Melbourne yesterday, with Metcash the final company to be put under the spotlight. Metcash, Australia’s largest wholesaler, was questioned on a range of issues, which have already been highlighted throughout the preceding months. The ACCC was particularly interested in the strength of price competition provided by independent grocers to the major supermarkets. ACCC Chairman, Graeme Samuel, questioned Metcash CEO,... ...Read more »
Australia’s largest wholesaler, Metcash Limited, has posted an 18.4 per cent rise in net profit in the year to 30 April 2008. Fresh produce sales and their distribution business provided the impetus for the company to deliver record results. Metcash Chief Executive Officer, Mr Andrew Reitzer, was very pleased with the result in the wake of difficult conditions. “The result has been very strong across all of our three main divisions, despite tighter economic conditions, with... ...Read more »
The Australian Competition and Consumer Commission (ACCC) resumed their grocery price inquiry in Melbourne yesterday, with Coles the latest supermarket to be put under the spotlight and forced to deny accusations of anti-competitive behaviour. The ACCC has been worried that competition could be limited based on revelations by IGA and Woolworths that they instruct store managers to merely match the prices of their competitors. “If Coles’ instruction to its managers is exactly the... ...Read more »