- Wholesaler Metcash, has told the market, 7- Eleven will not be renewing its $800 million supply contract with the company
- It is believed the company was unable to reach an agreement with 7-Eleven on its supply requirements for the east coast
- Metcash sells $800 million worth of goods into 7-Eleven stores each year
- Metcash is down 6.92 per cent on the market today and is trading at $2.83 apiece
Wholesaler Metcash, has told the market, 7- Eleven will not be renewing its $800 million supply contract with the company.
It said the company was unable to reach an agreement with 7-Eleven on its supply requirements for the east coast, this includes delivery routes and schedules.
“Metcash determined these requirements would lead to supply being uneconomic for its Convenience business,” the company said.
Metcash sells $800 million worth of goods into 7-Eleven stores each year, the majority of this is low-value tobacco sales. It has been supplying goods to the convenient store for more than a decade.
The company says it’s in discussions with 7-Eleven to continue to supply in Western Australia, as well as a number of smaller categories on the east coast.
“Metcash will be assessing opportunities to help offset the future earnings impact of today’s advice from 7-Eleven,” the company added.
The latest contract between the businesses ends on August 12, 2020.
Metcash is down 6.92 per cent on the market today and is trading at $2.83 apiece at 3:10 pm AEDT.