Metcash Limited (ASX:MTS) shares continue to plummet after loss of major customer

Shares in grocery company Metcash Limited (ASX: MTS) are down another notch at the time of writing, dropping 0.7% to $2.89 after falling from a share price of $3.68 on May 28 when the company announced Drakes Supermarkets was likely to shun its South Australian distribution centre.

Metcash announced on May 28 the loss could equate to $270 million – the total sales for Drakes in South Australia in FY18 – after Drakes announced it would not commit to have its South Australian supermarkets supplied by Metcash under its proposed new distribution centre.

FY18 earnings for Metcash’s supermarkets and convenience pillar is expected to be in line with the previous year, but the segment will likely report a 1.2% decline in total sales and 3.6% decline in wholesale sales for the year.

Metcash is a formidable player in the competitive grocery space and have not been underestimated by sector giants Woolworths Group Ltd (ASX: WOW) and Wesfarmers Ltd (ASX: WES), both of which are on the gains today while Metcash flails – with Woolworths up 0.4% to $28.75 and Wesfarmers up 0.66% to $45.87.

The Rocket Fuel of the AI Boom

One of the world’s richest people is sounding the alarm on what could be a trillion-dollar technology.

Everyone is talking about the artificial intelligence revolution.

Harvard Business Review calls it, “the most important general-purpose technology of our era.”

One Google Insider predicts AI, “will be as transformative as the discovery of electricity.” And it already is transforming industry after industry.

After all we have been hearing about AI for years…but it never really lived up to the hype…so what’s finally unlocked this huge tidal wave of innovation?

Click here to learn more!

Motley Fool contributor Carin Pickworth has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Wesfarmers Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…


The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!