Metcash under threat as grocery wholesale sector set for shakeup

DHL and a new wholesaler operation called irexchange (Independent Retailers Exchaneg) look set to enter the grocery wholesale market in Australia.

According to the Sydney Morning Herald, retailers are looking to different supply chain routes in order to compete with giants such as Woolworths and Coles. The paper reports that irexchange has already set up meetings with several retailers who are currently Metcash customers.

The new service would allow customers to order via a portal and have their products with them within two days via delivery from DHL.  

While irexchange is keeping quiet about these developments, it is known that Incitec Pivot’s Clive Yoxall is heading up the company, with former Australia Post executive Terry Sinclair on board as a director.

One of the complaints towards Metcash is that their margins are too high while others cite its warehouse in South Australia being too small. 

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