Metcash cuts waste, but where is the strategy?
The AFR reported about Metcash's Working Smarter cost savings program, citing that the wholesaler has folded its supply chain and logistics operations into the supermarket and liquor businesses to streamline functions, reduce operating costs and enable faster decision-making to improve service to its customers. The three-year, $125 million program, which has helped Metcash offset the impact of falling sales, comes to an end this year. Metcash's fate has been somewhat linked to that of IGA, whose market share has halved to approximately 8% in the last decade due to mounting pressure from the likes of Aldi. Of course, cutting waste is pragmatic, but it is not a long-term strategy.