Metcash brainstorming possible corner store low pricing with suppliers

Posted by AFN Staff Writers on 16th April 2018

Australian grocery wholesaler Metcash has been brainstorming the concept of offering low pricing through Australian corner stores with its suppliers.

As discussed with Australian Food News by a Metcash spokesperson, Metcash has recently presented “discussion and talking points” to its suppliers regarding the possibility of Australia’s corner stores offering low priced grocery items.

Metcash’s spokesperson however said the discussion and talking points are in no way reflective of any strategy Metcash has committed to.

The presentation was first reported by The Australian on 16 April 2018 after it was obtained by The Australian.

News of the presentation comes after Metcash reported a 20 per cent drop in profit after tax for its 2017 financial year.

When releasing the results, Metcash attributed the profit fall to its acquisition of Home Timber and Hardware and investment in its Working Smarter transformation plan.

Working Smarter was first launched by Metcash in 2015 to “make it simpler for customers and suppliers to do business with Metcash and to reduce our cost of doing business”.

In late December 2017, Metcash reported that its food sales for the first half of its 2018 financial year had dropped 1.4 per cent on its first half 2017 results.

Metcash attributed this fall to significant investment in price and promotion among its competitors.

Competitors expansion, particularly into South Australia and Western Australia, were also listed as a challenge.

Over the past two years, Aldi has entered SA and WA for the first time, establishing a number of new stores.

In July 2017, Metcash announced that former Tesco executive, Jeff Adams would be taking over as CEO as of late 2017.


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