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Metcash has released annual results for the year ending 30 April 2019, with group sales up 1.8% to AU$12.7bn, but EBIT down 1.4% to AU$330m.

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Kaufland has started the construction of its first Australian distribution centre in Mickleham, on the northern edge of Melbourne.

Australia's most advanced DC

The new 117,000+ sq m facility will cost AU$255m and marks the next step in the retailer's entry into the market. The DC will be one of the largest in Australia once complete and include the most advanced technologies in terms of automation, efficiency and suatinability. The centre will service Kaufland's first stores in the country, which are due to open in Dandenong, Epping and Chirnside in Melbourne, alongside two additional sites that have recieved planning in Adelaide.

First stores likely to open in 2020

We have known for some time that Kaufland will be entering Australia and this latest development brings the prospect even closer. The retailer has been rapidly builiding its management team and buying up real estate over the past few years. Although no official date has been set for the first store opening, it is estimated that it will likely be in the second half of 2020.

Coles has told staff at its support centre in Melbourne that it will be cutting 450 jobs, as well as making some leadership changes.

Job cuts ahead of major strategic reset

The job cuts are part of an efficiency drive by the retailer and preceed the Coles strategy day that will be held next week. Coles managing director, Steven Cain, is expected to announce a major strategic reset for the business following its demerger from Wesfarmers. Although 450 roles will go, this includes job vacancies that are currently unfilled, so the total number of redundancies is likely to be less than this number. It is unclear currently which functions will be hit the most.

Three senior executive changes...

As part of the announcement, it was confirmed that two executives will also leave the business. CEO of Coles Express, online and corporate affairs, Alistair Jordan and chief store operations officer, Paul Bradshaw will depart. Coles COO, Greg Davis will move from his role to take over the operation of Coles Express, as well as head up commercial. While Coles' head of supply chain Matt Swindells has been promoted to COO, overseeing supply chain and store operations. Ian Bowring, currently transformation director at Metcash, where Steven Cain used to work, will also join Coles to head up its 'smarter selling' unit.

Costco has announced that it will open its first store in New Zealand.

Auckland's Westgate chosen for first store

The new 14,000 sq m membership club store will be located at Westgate on the north western edge of Auckland. It will provide a new retail destination for the city, with 800 parking spaces and include groceries, electronics, homewares, plus fuel, a tyre centre, an optometrist and a hearing aid service. Construction of the store will start once all regulatory consents are obtained.

New Zealand and Australia business will be closely linked

Over the past 10 years, Coscto has steadily built its network in Australia, with 11 shops trading to date. Although not having had significant impact on the total market, Costco has given shoppers more choice and proven incredibly popular, with some of the stores proving to be the busiest Costco's in the world. The move into New Zealand is another significant step for the retailer and will bring a new dynamic to the competitive landscape. It is expected that the New Zealand branch will work closely with its Australian arm to aid efficiencies and share learnings.


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Included in this report:

  • Ocado's five year sales forecast
  • Ocado's strategy
  • Ocado's international agreements
  • Ocado Smart Platform innovations
  • Ocado's fulfilment and delivery operations
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