FYI - another shark lurking in the waters looking for growth via digital expansion. Article has an error - they didn't acquire Broo but have a 6 month exclusive distribution agreement.
Metcash enjoyed sales growth in retail of close to 20 per cent in the first four months of its second half, even as on-premise sales improved with the easing of restrictions.
Metcash continues to benefit from consumer behaviour to shop locally and more ‘in-home’ occasions with all segments – food, liquor and hardware –announcing sales growth of 14.4 per cent. Population growth in regional areas was also a factor contributing the sales growth.
Moving ahead, Metcash will continue to prioritise its Private Label portfolio, having acquired Koollaras last year and Broo Beer and continues to upgrade its retail outlets, including expanding and improving its cool room offerings.
ALM attributed its stronger customer relations and growing on-premise customer partners in part to having allowed stock return, payment plans and re-opening deals during COVID.
ALM continues to invest in stores, planning for $375 million capex over the next three years, including expanding and improving cool rooms.
However, expectations are for the largest growth to come from expansion in the digital space.
CEO Jeff Adams said, “Food and Liquor retailers are now more interested in digital solutions.The ‘size of the prize’ in digital is large – we are stepping up our investment at the Pillar and Group levels to accelerate the delivery of solutions.”
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