Metcash sales growth slows as costs pressure consumers

The news: Groceries and hardware wholesaler Metcash has posted a small lift in sales as increased cost of living pressures weigh on consumer demand.

The numbers: Total group sales were up 1.7% in the 18 weeks to 3 September, lower than the 2.3% increase seen in the first seven weeks of the new fiscal year. Food sales ex-tobacco rose 6% while tobacco sales declined 11%. Supermarkets' wholesale sales increased 6.2%.

The context: Increased cost of living pressures are impacting some shoppers’ behaviour, leading more consumers to shop around for promotions and discounts, chief executive Doug Jones will tell shareholders at the company’s annual meeting later on Friday.

What they said: “While demand continues to be solid in all pillars, the impact of higher interest rates and cost of living is impacting consumer confidence and the behaviour of some customers and shoppers in our retail networks,” Chairman Peter Birtles will tell investors at the meeting.