Metcash sets the date on fresh food

Date : 07 September 2016

Metcash has introduced a new policy, whereby suppliers of all perishable goods will need to pass more strict shelf life guidelines.

Limited shelf life impacting the whole chain

One of Metcash's key strategic pillars in order to become more competitive is around improving its fresh food offer and the retailer, according to local press reports, has sent a letter to its suppliers calling for better management of product shelf life. The new policy will allow Metcash to reject deliveries of products if the stock is too close to its expiry date. A letter from Andrew Clark, Metcash's general manager for merchandise, apparently said that shelf life issues were impacting the whole supply chain, from its distribution centres, to its stores, and the impact of out of date products being purchased by shoppers was damaging the brand.

A strong fresh offer is paramount to success

Metcash will be keen to continue its work to improve its fresh food offering, be that across fruit and vegetables, meat and dairy. Despite Woolworths' recent poor performance in Australia, both Coles and Aldi continue to see robust sales growth, with both investing heavily in improving fresh food basket penetration. Given this, coupled with the demands of the Australian shopper, around fresh food, scratch cooking and healthy living, a consistently excellent fresh food offer across all IGA and Foodland stores, which Metcash supply, will be a key deliverable for success.