Metcash group sales rise despite tobacco sales decline

Image of Metcash's food and grocery products
Total Tools saw a 0.5 per cent increase in sales due to subdued trade activity. (Source: Metcash)

Metcash’s group sales, excluding tobacco, increased 5.1 per cent in the 18 weeks to 31 August this year, with Metcash’s first cross-pillar marketing campaign scheduled to roll out across over 3000 bannered stores in the second quarter of the year.

The group’s food pillar saw an 8.6 per cent increase in its total food sales, with supermarket sales rising 2.6 per cent, driven by differentiated and localised offerings to shoppers.

The supermarket segment’s performance was dragged down by a greater-than-anticipated decline in tobacco sales, down 32.1 per cent, as the group tries to transition away from tobacco.

Metcash’s convenience and foodservice sector sales rose 29.5 per cent, with Campbells and Convenience’s sales increasing 14.6 per cent and Superior Foods’ sales increasing 2.7 per cent.

The group’s liquor pillar’s sales grew 1.5 per cent, impacted by increased promotional activity from competitors, with the group nearing completion of its acquisition of Steve’s Liquor Warehouse Group.  

Metcash’s hardware sales (IHG) grew 2.2 per cent, with the strongest growth in trade, particularly builder’s hardware, building supplies, timber panels, and doors.

Total Tools saw a 0.5 per cent increase in sales due to subdued trade activity and cost-of-living challenges; however, its network sales grew 3 per cent.

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