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
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThe 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”.
