Metcash shares hit

METCASH has flagged a potential $270 million sales hit after Drakes Supermarkets said it would not commit to using its supplier’s new South Australian distribution centre.

Metcash says Drakes has not advised it has any intention to change its supply arrangement in Queensland, and that its current agreement with Drakes in South Australia runs until June 2019.

Shares fell 17.6 per cent to close at $3.03.