Metcash - Hardware Business

As most who follow Metcash would know their Hardware arm has been affected significantly by the slow- down in new builds, renos and trade-based products in general. Many of the Mitre 10 stores in NSW, Vic and Southern Tasmania have been tanking for well over a year with many running at a loss.

To me this will not pick up anytime soon particularly as the colder months begin to loom. I realise that interest rates came down slightly in the last day or so but not to the point of influencing anyone to change their new build or renovation strategy.

Just putting it to the forum as to whether the Metcash Board should be looking to off-load many of these unprofitable Hardware and Building Supply businesses as they are burning into the other two verticals of Food and Liquor which for different reasons should continue to see an uptick in revenue based on interest rates, the economy and consumer confidence as 2025 progresses.

Also aware that Bunnings are putting a lot more time and energy into their Trade offering which will take a large chunk of revenue and profit from Mitre 10 and Home Hardware. I've been into two large Trade focussed Mire 10's in the last month, one in Victoria and the other in Hobart and they were both dead quiet with minimal staff on deck. The one in Hobart which was old and ratty had a Bunnings only 500m away and it was very busy with a constant flow of customers.

Is this the death knell of the local hardware brand that Metcash has pushed as an alternative to Bunnings? Should Metcash jettison many of these loss-making stores and increase their overall profitability by focussing on building the food and liquor business as consumer sentiment improves and Woolworths and Coles become increasingly on the nose with Australians everywhere?