METRO CASH AND CARRY LIMITED - METCASH TRADING LAUNCHES THE MOST INNOVATIVE
PETROL DISCOUNT SCHEME IN AUSTRALIA
METRO CASH AND CARRY LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1946/021315/06)
Share Code: MTC
ISIN Number: ZAE000012688
("Metro")
METCASH TRADING LAUNCHES THE MOST INNOVATIVE PETROL DISCOUNT SCHEME IN AUSTRALIA
Metro Cash and Carry Limited"s Australian subsidiary, Metcash Trading,
yesterday launched its innovative petrol-discounting scheme in Australia to a
warm response from customers, press and consumer groups. The scheme will
initially be trialled by its 189 IGA supermarket franchisees based in
Queensland.
The beauty of the Metcash scheme lies in its simplicity and ease of use by IGA
store-owners" customers. The gist of the scheme is that customers who spend a
minimum of A$30 at an IGA store on a Friday will be able to obtain a discount on
any fuel receipt presented to the IGA retailer at the time of purchase. The fuel
may be purchased at any petrol station across the country on any day. This is
how the Metcash offering differs from competitive offerings - where customers
are forced to use a select and narrow group of retailer owned/associated branded
petrol stations to take advantage of the discount.
Furthermore, Metcash"s scheme offers canny customers the opportunity to obtain
an extra discount on petrol purchases that have already been made at fuel
stations owned or associated with its competitors. This "double dip" tempter is
expected to divert a substantial chunk of sales to IGA Stores as customers seek
out the cheapest overall fuel cost available to them.
The funding for this scheme will be borne by the individual storeowners - and
will be paid for by the anticipated incremental sales. This reverse-engineered
scheme has leapfrogged Metcash into the petrol discounting business in Australia
- without committing a large investment in the low-margin fuel retailing
business. Metcash is expected to benefit from the deal - as it will make the
extra money on the volume increases and will have no exposure to the cost of the
scheme, to be carried by its franchisees.
The scheme is currently in place on a trial basis - but is likely to be extended
across all remaining 1,000 IGA franchisees in other states. The scheme may also
be extended to other days of the week - depending on the initial response.
Date: 30/09/2003 02:27:03 PM Produced by the JSE SENS Department
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