Outlook for Metcash is grim
Times are seriously tough for grocery wholesaler Metcash, according to an AFR report. The article outlines the details of a $125 million off-market buyback, which will reduce the business's issue capital by about 5.3%. The move comes after supermarket chain Drakes' announcement in May that it will leave the Metcash supply chain, the growing strength of Aldi in key markets, and continued fierce competition from Woolworths and Coles. Fund managers warn that Metcash faces serious strife over the next 5 years. Across grocery and pharmacy, there is an interesting wholesaling shake up down under.