Australian wholesale grocer Metcash has announced it will spend up to A$480m (US$437m) to overhaul its business to prepare it for “long-term sustainable growth”.

Metcash plans to spend A$100m-$125m to fund store refurbishments, new stores and store buybacks.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

The retailer wants to drive efficiency by investing in its infrastructure and also provide better support to its independent retailers through the expansion of its digital platform.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The programme will take place over the next three years. Investment in the first year is estimated to peak at between A$150-$180m in 2015 and reduce to A$130m-$150m in 2016 and 2017.

To fund the project, Metcash will reduce dividend payout ratio to 60% starting from the final FY14 dividend.

CEO Ian Morrice said Metcash wanted to “reignite top-line growth within the food and grocery channel”.

He said initial pilot programmes had proved “positive” and that “retailers working with Metcash are strongly supportive of the plan”.