Retailer Metcash is splitting its food and grocery business into two, reversing a 2012 decision to merge the operations.

Metcash’s supermarket business, which operates IGA supermarkets and the No Frills and Black and Gold private labels, will now operate separately from the IGA and Lucky 7 convenience store business.

The change will allow Metcash a greater focus on the turnaround of its supermarkets and growth opportunities in the convenience sector, chief executive Ian Morrice said.

“To provide a greater turnaround platform for our Supermarkets business and optimise the growth opportunities identified in the convenience channel, we have decided that the Metcash Food & Grocery pillar will be run in two divisions, each led by a separate CEO,” Morrice said.

The head of Metcash’s food and grocery business, Silvestro Morabito, is leaving the company, and internal candidates have been appointed to lead the newly separated operations.

Fergus Collins, CEO of ALM will take on the role of CEO supermarkets, and Scott Marshall, currently GM of merchandise and marketing at ALM, will take over the role of CEO ALM.

The new CEO convenience will be appointed in the near future.

Metcash, which also has liquor operations and owns the Mitre 10 hardware chain, merged its food and grocery operations into one business in April 2012.

AAP