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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.

Woolworths in Australia has invested AU$30m into meal kit delivery company Marley Spoon.

Benefits and learnings for both companies

The investment by the market leading retailer will see it form a strategic partnership with Marley Spoon, as well as take ownership of 9% of the business. Although no details have been released it is expected that the two companies will work together to develop meal kits and explore new ways for customers to pick up Marley Spoon orders. Whilst Marley Spoon will gain access to Woolworths customer base and logistics network.

Growing need to tap into new meal solutions

Marley Spoon has operations in Australia, Europe and the US and has been growing its user base in recent years. However, much of the investment will go towards ensuring the future of the business, having run up a AU$66m loss in 2018. With the growing popularity of meal kit and meal delivery solutions, retailers globally are increasingly looking at tapping into this sector.

Presentations

19/06/2019
Coles has released a refreshed strategy aimed at driving sustainable growth and positioning itself to win in a new era since its demerger from Wesfarmers, we assess the changes and what it means for suppliers.
04/06/2019
Aldi in Australia continues to innovate through its store formats, merchandising and ranging, we visit one of its stores in Sydney to see this in action…
08/04/2019

We review Ocado's current performance, its growth forecasts for the next five years, plus progress against key strategic objectives.

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
View all presentations

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This in-depth guide to Australia explores the key trends in grocery retail and the growth strategies of the leading retailers in the country.

We've developed a single, universal methodology for calculating food and consumer goods retail data, supported by our programme of primary and secondary research. This makes Retail Analysis the most reliable and robust source available for data of this type. 

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