Metcash shares hit by lost 7-Eleven deal
Metcash shares have dropped more than 10 per cent to a four-month low after 7-Eleven chose not to renew its contract with the wholesale food and beverage supplier when it expires in August.
Metcash on Friday said its annual sales to 7-Eleven total about $800 million a year, mostly in lower-margin tobacco products.
“Metcash was unable to reach agreement with 7-Eleven on its supply requirements for the east coast, including delivery routes and scheduling,” the ASX-listed firm said.
However, Metcash said it was still in talks to continue to supply 7-Eleven stores in WA.
The blow is just the latest for Metcash, which in 2018 posted an impairment-driven loss of $149.5 million when Drakes Supermarkets declined to extend its SA contract after Metcash had announced plans to open a new purpose-built distribution centre.
At 1306 AEDT, Metcash shares were down 10.5 per cent to $2.72.
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