Freud and IGA
The Australian Financial Review must have made an error when it said that “Retail sales across the IGA retail network declined 0.9% on a like-for-like basis for the 12 months to April 2018” and then immediately followed that statement up with a quote from the new CEO of Metcash: “Now we need to figure out how to go faster.” This sounds like a Freudian slip – Metcash is in trouble, mainly because of its business model rather than competition or so-called unfavourable market conditions. The recent announcement of Drakes' switch to their own distribution network confirms this. Any independent chain that reaches a size sufficient to support their own sourcing will walk away from Metcash. Why wouldn’t they?