Metcash Lightening the load
As of Saturday last, Metcash has closed 56 stores, including Metro Cash & Carries and Trade Centres, pretty much halving its footprint in terms of store numbers, with the loss of around 1,000 jobs, in order to hunker down and build the business back up to its former glory. Some analysts believe that pressure on the independent trade as the majors moved into the townships has whittled away Metcash’s customer base. It is hoped that by losing the underperforming stores, existing punters will migrate to those nearby, consolidating the customer base under the Metro brand, as Trade Centre is to trade no more. The big news is that Metcash will be rolling out an undisclosed number of hybrids later this year, an initiative to be funded in part by institutional shareholders like Old Mutual, which holds a 9.7% stake.
Comment: We look forward to the resurgence of a leaner, meaner Metcash. And indeed to the continued survival of its customers in the trade.