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distribution centres, to its stores, and the impact of out of date products being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.