Metcash chief Ian Morrice grabs reverse on convenience stores

 In Australia, Metcash/IGA, NewZealand
Wholesaler Metcash is chasing an extra $1 billion in sales from the convenience and food service sector after warning investors that earnings from its core food and grocery pillar are unlikely to return to growth until 2016.
One year after taking the helm from Andrew Reitzer, Metcash chief executive Ian Morrice is reversing his predecessor’s decision to scale back convenience and food service operations, saying Metcash is well placed to grow its share of a fragmented market worth $11.5 billion.
Mr Morrice said Metcash’s $9 billion food and grocery business remained the primary focus and was key to restoring the fortunes of the group and independent retailers as competition from Woolworths, Coles and Aldi  intensified.
But there was scope to grow convenience and food service sales from $1.5 billion to $2.5 billion a year within three to five years, he said, by taking advantage of Metcash’s national distribution footprint and by offering customers a total wholesale solution.  Sydney Morning Herald – Read more…

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