Metcash taps Richard Murray to head Total Tools

Months after his shock departure from billionaire Solomon Lew’s Premier Investments, Richard Murray will head up wholesale giant Metcash’s hardware arm.

Richard Murray’s shock exit as chief executive of Premier Investments was announced in August last year.

Retail industry veteran Richard Murray has been roped in by supermarket, food, liquor and hardware wholesaler Metcash to drive its high-opportunity Total Tools Holdings arm.

Mr Murray’s move to Metcash comes after he left billionaire Solomon Lew’s retail empire, Premier Investments, in September last year.

His shock departure announcement in August came two years after Mr Lew engineered a coup of sorts by poaching the then 20-year JB Hi-Fi executive to join his business.

Alongside Mr Murray’s decision to step down after driving record sales and earnings in a challenging post-Covid environment, Premier also announced a surprise strategic review, which market-watchers expect could trigger a demerger that splits its mature apparel businesses and Peter Alexander and Smiggle brands which have international growth opportunities.

In its announcement on Monday, Metcash said Mr Murray would join at the end of the month, replacing outgoing Total Tools Holdings chief executive Paul Dumbrell, who decided to leave after more than five years in the top job.

Metcash chief executive Doug Jones said Mr Murray had a “huge passion for the sector and Total Tools, both as a retailer and a serious tools and DIY enthusiast”.

Premier Investments chairman Solomon Lew, right, and CEO Richard Murray had delivered strong earnings at Premier before the decision to part ways. Picture: Ian Currie

“Importantly, Richard’s deep retail experience and proven track record ideally positions him to play an integral role in the continued success of Total Tools as the number one player in the Australian professional tools market,” Mr Jones said.

Mr Murray’s appointment comes as market watchers keep an eye on Metcash’s hardware aspirations.

As DataRoom reported last month, after making a number of acquisitions, the focus for Metcash is now selectively looking at hardware stores to buy, potentially including online hardware business HBT, which could expand its existing stable of stores trading under brands such as Mitre 10 and Total Tools.

On Monday Metcash also announced its new chief executive for its liquor business in Diageo’s UK boss Kylie Wallbridge.

In addition to Diageo, she has worked for multinational liquor organisations and brands, including Heineken for thirteen years and Lion for seven years, in several senior roles across Africa, Asia and Australia.

She replaces Chris Baddock, who retired due to health issues, and will take over from acting liquor CEO John Barakat in March.

Their remuneration arrangements were not detailed.

Mr Murray’s annual fixed remuneration for the 2023 financial year at Premier was $2m. Premier’s annual report for the financial year ended July 29 shows his total remuneration at $7m-plus, including short and long-term incentives. But the LTI expense included an amount of $3.3m that lapsed following his resignation subsequent to year-end.

Metcash’s push to bolster its ranks comes after reporting a 12.2 per cent jump in first-half profit to $141m as revenue rose 1.3 per cent to $7.8bn amid a subdued consumer environment due to high costs and a string of interest rate pressures.

More shoppers visited its stores such as IGA, Cellarbrations and Total Tools in the six months to October 31, but rising costs — which Metcash has tried to flatten through a cost-cutting program — and falling profits at parts of its hardware division saw underlying earnings decrease by 3.4 per cent to $246.5m, while underlying profit after tax fell 10.9 per cent to $142.5m.

Shares in $3.4bn market-cap Metcash closed up 1.3 per cent at $3.54 each on Monday, against a fall in the broader market.