"Under Morrice, Metcash is investing more than $700 million over five years to reduce food and grocery prices, rolling out a cheaper and more compelling range of private label groceries and helping IGA retailers refurbish stores to boost sales of fresh food."
i) There is a veg retailer close to home (Brisbane) that constantly changes operational ownership.
At each exchange - the new hands rearrange the alignment of the ailses to new compass points. I've never seen the benefit in this, other than it takes me a few confused weeks to ingrain in me a new subliminal sense of where the tomatoes are now racked for sale.
Is Morrice realigning (refurbishing) his compass? Is this nesting instinct, valid for a national grocer in pain?
Customers don't come to a store because it is refurbished, they just don't go to a store that needs refurbishing. The distinction is subtle, but important in a company in strife & agony. The marketing term is a 'hygiene" factor.
ii) You don't need to "invest" to drop prices - you go out AND DROP PRICES!
iii) "Compelling" private labels or private house labels, do not compel consumers to buy products.
It's a defensive strategy, to so distinguish your product by camoufluage or concealment so as to make it impossible for consumers to make a comparison to the bigger retailers cost cut product.
"Compelling" brands are marketed by association with the likes of Federer, Clooney. Schumacher, Jordan. Ronaldo, Solo, Hesseini & Messi. But compelling brands acrue profits strictly to the producer not the retailer (as the products are notably "loss lead" in weekly fly sheet door-to-door drops ) This is no time for MTS to be taking a lead in "compelling brands"
Surely?
MTS Price at posting:
$1.13 Sentiment: Hold Disclosure: Held
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