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How is Metcash responding to customer, supplier and retailer trends, as well as supply demand in 2020? Metcash has a proud history as a wholesaler, and in recent years has added significant category management capability and a strong focus on retail. Getting that balance right is essential to allow us to be the most cost-efficient route to market for suppliers, be more agile, and respond quickly to the diverse needs of our customers and emerging market trends. The impact of Covid in 2020 has meant that we’ve needed to draw on every ounce of capability from our amazing team in the support office and all our state offices and DCs to meet the increased demand. We’ve moved quickly to stand up additional capacity and worked with suppliers to make rapid adjustments to range and planned activity to deal with a fast-changing environment. How is Metcash accelerating expansion of its digital capability and online offers? Our IGA Rewards program continues to roll out around the country and will help us reach shoppers to show them even better value with more targeted offers. What has been really exciting this year is the launch of IGA Shop Online. Covid required that we accelerate our plans and bring this capability online quickly, initially to ensure that IGA stores were able to support the most vulnerable members of their communities. The digital team are already working on the next iteration of the online shop to help IGA retailers compete effectively online. How is Metcash resetting and transforming the way it conducts business for shoppers, retailers and suppliers? The answer here is simple: we’re putting customers at the heart of our planning and decision-making. We’re investing in people and systems that make it easier to do business with Metcash, like our new Metconnect portal for suppliers and our revamped myIGA portal for IGA stores. A relentless focus on improving value for shoppers led Metcash Food back to growth last year, and now we’re continuing to work with our supplier partners to retain new shoppers who’ve come back to IGA during Covid and who’ve seen the improvements that have been made. Implementation of new initiatives • Resetting terms We’ve created a dedicated trading- terms team. Many of our terms agreements were old and lacked relevance so we designed a new framework of terms documentation: standard T&Cs, trading-terms agreement, and various policies and procedures. This framework reflects our new ways of working and was written to comply with the updated grocery code. Engagement with suppliers began at the start of this calendar year, and the team are making excellent progress on reaching new agreements with our key trading partners. Because we work with such a massive number of suppliers, from the largest to some of the smallest, this process will continue over the next couple of years, through to completion. • Code of conduct signing Metcash had consistently indicated it would be a willing signatory to a grocery code that recognised aspects of the way we do business that are specific to being a wholesaler rather than a retailer. Metcash Food CEO Scott Marshall and I had discussed this prior to my appointment, and we agreed that the principles of good faith, fairness, equity and transparency underpin Metcash Food’s general approach to business. After consultation with the government and changes being adopted to make the code more relevant to wholesalers, we’re confident that becoming a code signatory will be good for Metcash Food and our vitally important relationships with suppliers. • Investment in new technology We launched our Metconnect supplier portal earlier this year, and we’ve continued to add new functionality to make it easier for suppliers to do business with Metcash Food. Promotions can be submitted, agreed and loaded in Metproms; Metproducts now has a feed from GS1 to enable new products or changes, like cost changes, to flow into Metcash’s master data. There’s much more to come, from the very first expression of interest in becoming a supplier, to the rich sources of data and insights that are shared with our Platinum partners. What’s been the response to the initiatives and how have suppliers benefited from these changes? There’s now a growing list of suppliers that have seen that we’re very much open for business, and that things have changed at Metcash. When Bulla left and then came back after a couple of years, others saw that Metcash’s reach and frequency of distribution to the independent network is unmatched, and that with our highly effective shopper programs, such as Low Prices Every Day, we’re ready to partner for growth. Manassen moved back in early 2020 and have been delighted with their results, and we’ve recently agreed an ambitious plan with L’Oréal to help them achieve their potential with independents. Freedom Foods is the latest supplier to come back to Metcash, and their range is being added into our DCs and charge- through system as we speak. More than anything else, these partnerships enable our customers to present a compelling offer to shoppers in a highly competitive market. SA distribution centre We’re close to completing our best- in-class distribution centre in South Australia \\\\\\\[Gepps Cross, Adelaide\\\\\\\] to replace our existing DC at Kidman Park. We had a milestone moment a couple of weeks back when we switched on the chillers and started the process of getting down to temperature in time for the transition before the end of the year. The new 68,000sqm facility will have greater ranges of grocery and perishables, increased operational efficiencies and best-in-class solutions that further underpin the ability of our independent retailer network to continue to provide a quality, differentiated offer tailored to their local community. The new DC will also benefit local suppliers by providing a route to market for their products. What’s next for Metcash? While we’re well into the transformation of Metcash Food, we still have lots to do. Looking forward, we’re focused on ensuring the customers we’ve gained through the Covid-19 period stay in the independent network. In merchandise, we’re totally focused on improving our competitive position through compelling shopper programs and strong execution in stores. We’ve built some strong momentum in 2020 and we’ll be working hard with suppliers to keep that going and see our network go from strength to strength. EXCLUSIVE INTERVIEW NOV, 2020 RETAIL WORLD 19