Metcash saw a huge bump over the last couple of years thanks to lockdowns, but it hasn't gone away.
👉 Background: While Metcash may not be a household name, its retailers certainly are. Metcash is a wholesale distributor to retailers across food (like IGA), liquor (like Thirsty Camel) and hardware (like Mitre 10).
👉 What happened: Metcash saw a huge bump over the last couple of years thanks to lockdowns and people shopping locally (remember that 5km rule?!). But our new preference for local shopping seems to have persisted past COVID restrictions.
👉 What else: Sales are up 8.9% for the Metcash group compared to the same time last year. And when IGA retailers do well, Metcash celebrates too!
💡 Although people speak about Woolies, Coles and IGA in the same breath, IGA actually operates under a VERY different model. IGA stores are actually independent supermarkets, which means they’re usually owned by locals.
💡 And for a small-town retailer, it would be pretty hard to run as efficiently as Coles. You'd need to build relationships with thousands of suppliers, arrange transport from different manufacturers and run marketing campaigns.
💡Metcash works as the middle-person that helps supply a lot of these independent stores with the know-how. We're talkin' more than 1600 independent food stores and 1500 hardware stores - with many in regional and remote areas... When those stores do well, Metcash is also a winner!
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