Metcash has reported a 5.1% increase in total group sales, excluding tobacco, for the 18 weeks to 31 August.

The group’s food pillar saw an 8.6% increase in sales, with supermarket sales rising 2.6% and foodservice and convenience rising 29.5%.

Campbells and Convenience sales increased 14.6%, buoyed by new customers and an increase in tobacco sales. Superior Foods sales increased 2.7% despite “increased competitive pressure and unfavourable mix change”.

Metcash, however, noted a “greater than anticipated” decline of 32.1% in tobacco sales, commenting that new regulations in effect from 1 July have impacted foot traffic.

Sales of the group’s liquor pillar rose 1.5%, with Metcash noting an increase in competitor promotional activity. The company’s acquisition of Steve’s Liquor Warehouse Group is said to be nearing completion.