Could 7-Eleven drop Metcash?

Metcash Limited is attempting to save a large contract with 7-Eleven worth more than $350 million a year, according to a report in the Australian Financial Review (AFR).

The long-term supply contract is worth significantly more than the $270 million contract to Drakes Supermarkets that Metcash lost recently, according to the report.

7-Eleven is calling for new tenders to supply its 700 national stores that turnover $3.4 billion a year as it looks to revamp its supply chain to support growth and a focus on fresh food.

Metcash may have already lost part of the contract that will expire in August 2020 with the AFR reporting that 7-Eleven is going directly to suppliers for most products for its eastern seaboard stores.
7-Eleven is seeking tenders from suppliers for the rest of the goods for its east coast chain. According to the report, Metcash is putting in a tender and is negotiating with the 24-hour convenience chain to supply its stores in Western Australia.


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