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 »

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 »

SPAR Australia has announced that since 1st December 2010, it has converted 11 Metcash supplied stores to the group. SPAR also announced that it is currently in negotiations with “a large number of independent retailers who are looking for a better service option and making the switch from their current supplier.” The latest of these conversions are 7 IGA stores in South-East Queensland, belonging to Keith and Margaret Simpson. Simpson said he felt his business will benefit from the better... ...Read more »

Grocery wholesaler Metcash has reduced its 2011 full-year earnings guidance on the back of difficult trading conditions. The company yesterday cut its earnings growth to between 3% to 5%, down on the previously forecast 6% to 8%. The reduced forecast was based on continuing food and liquor price deflation, value-driven consumer behaviour, escalating utility costs, unseasonal weather and high interest rates. Metcash added that the flooding in Queensland and Victoria has impacted operations, but the... ...Read more »

Australian grocery wholesaler Metcash has booked a rise in first-half underlying earnings, but cautioned it may not be able to hit its full-year targets. Metcash said the continuation of the “extremely tight trading conditions” in the first half will “exert pressure” on its ability to achieve its full-year guidance. The company said the strong Australian dollar meant it was facing falling food prices while facing higher labour and utility costs. The wholesaler also cited an... ...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 Ltd, Australia’s leading independent grocery and liquor wholesaler, distributor and marketer, has signed as a national donor to Foodbank. Foodbank is the largest hunger relief organisation in Australia, last year collecting, warehousing and distributing 19 million kilograms of food to 2,200 welfare agencies across the country – representing 25 million meals. Foodbank has seen a 20 per cent rise in the number of welfare agencies seeking assistance in NSW over the last 12 months as 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 »