Metcash building new IGA Online, to ‘catch up’ with rivals

Dean Blake

16th Mar 2021

Australian grocery wholesaler Metcash is building a new, upgraded version of IGA Online which is expected to be launched soon.

According to the AFR, about 800 IGA stores will be up and trading online by 2025. The new and improved IGA Online will feature click and collect, as well as home delivery through a partnership with DoorDash.

The grocer’s online platform launched in April after pressure from government agencies and departments to ensure the supermarket could support home deliveries in the event of a Stage 4 lockdown.

“That’s a pretty big achievement for us considering we never had anything before,” senior manager of digital transformation at Metcash Marc Keegan told Inside Retail last year.

“This is something that we haven’t done before. We’re trying to catch up on 10 years of competitors’ work. And I think we’ll get there very very quickly.”

News of the online revamp came at the same time as Metcash revealed its latest trading update. The company reported strong sales momentum across all of its pillars – food, hardware and liquor – during the first four months of its second financial half.

Metcash’s supermarket sales rose 14.4 per cent compared to the prior corresponding period, while total food sales rose 4.1 per cent. Liquor sales rose 19.6 per cent, with strong retail network sales outweighing the adverse impact of ‘on-premise’ customers – which have started to recover across states with easing restrictions.

Hardware saw the largest lift, up 31.6 per cent, largely due to increased customer retention and a continued drive toward DIY.

“Clearly there’s a shift in consumer behaviour,” Metcash group chief executive Jeff Adams told investors and analysts on Tuesday, according to the AFR.

“We’re seeing many new and returning customers continue to shop with us.”