Metcash expects to lose $420 million in the 2011 financial year after Woolworths announced it would take control of the
Metcash expects to lose $420 million in the 2011 financial year after Woolworths announced it would take control of the delivery of its liquor interests in Queensland.
Woolworths has now commissioned its own Queensland distribution centre to begin an in-house strategy previously announced.
Metcash Chief Executive Andrew Reitzer says while the loss of contract would sting, he is confident the company will be able to fill the sudden monetary void.
“While loss of the Woolworths will have financial impact on the ALM business and Metcash Group in our 2011 financial year, we have already commenced strategic initiatives to replace some of the lost volume and reduce costs accordingly,” Reitzer says.