Grocer seeks fringe benefit

Jeff Whalley
February 27, 2013
Herald Sun

THE new chief of grocery supplier Metcash will aim for growth areas on the urban fringes and regional centres as he seeks to expand the group’s footprint.

Ian Morrice says he will also push to lift the amount of trade the company does with existing clients.

Speaking to BusinessDaily, Mr Morrice said there were strong growth opportunities for the 76-year-old business.

Metcash yesterday named its new chief, who will replace Andrew Reitzer when he leaves the group at the end of June.

The company, which supplies retailers that trade under the Independent Grocers of Australia banner, has expanded significantly under its outgoing chief.

“I want to aggressively pursue that growth,” Mr Morrice said.

The 52-year-old, who has been a director of Metcash since last June, has more than 30 years of retail experience including time as a senior executive for UK retailers including Dixons and The Kingfisher Group.

He was managing director of New Zealand-based discount department store chain The Warehouse Group from 2004 to 2011.

Mr Morrice said the group’s independent retailers did not buy from Metcash exclusively, leaving room for growth.

“There are massive benefits if they do buy from a single source,” he said.

Metcash last July launched an independent greengrocer banner, Harvest Market, and Mr Morrice said the initiative could be extended.

He also said there were opportunities to expand in growth corridors and regional areas.

“We will go wherever there is population growth and opportunities to grow distribution.

“I think the vibrant independent retail sector is a vital part of the economy in Australia and we are proud to champion that.”

And he also dismissed the supermarket price war between Coles and Woolworths as “more of a marketing war”.

“Both supermarket operators operate incredible operating margins so they are not cutting prices to do it.”

Mr Morrice will receive $1.5 million annual base salary and will be able to earn the same amount in short-term benefits if he meets performance targets.

Metcash chairman Peter Barnes said Mr Morrice “inherits a company” that was vastly stronger than when Mr Reitzer became chief 15 years ago.

“Metcash has become a champion of independent retailers and has gone from an underlying loss of $3.1 million in 1998 to an underlying profit of $262.5 million in 2012,” Mr Barnes said.

“It is a great platform for Ian to build on.”

Metcash shares closed 1c lower yesterday at $4.03.