Australian wholesaler and distributor of groceries Metcash has announced that Fergus Collins, CEO of its Supermarkets division has resigned.

Metcash said Mr Collins resignation will mean there are some changes to the way the Company is organised at the executive level. Metcash’s brands include IGA supermarkets, Mitre 10, Cellarbrations and Autobarn.

Mr Collins had been with Metcash for 13 years. In this time, Mr Collins lead Metcash’s liquor business Australian Liquor Marketers (ALM), and more recently established the foundations of Project Diamond, Metcash’s transformation strategy.

Metcash has continued to face slow progress with its transformation strategy, with profits continuing to decline. In December 2014, the Company announced a drop in its Underlying Profit after Tax of 9 per cent, to $101.7 million, which it said was due to “ongoing operating deleverage” and the commencement of its investment strategy for its Food and Grocery division. In June 2014, Metcash had announced a profit decrease of 10.9 per cent to $250.1 million for the 2014 financial year.

Until a new CEO of the Supermarkets division is appointed, Group Chief Executive Officer, Ian Morrice will take on the day-to-day running of the Supermarkets business, which the Company said would “ensure the momentum of the transformation plan is maintained. To support this, the Group’s corporate functions will report to Chief Financial Officer, Brad Soller.

“I would like to record our thanks to Fergus for his commitment and wish him well for the future,” Mr Morrice said.

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