Metcash, which has the IGA network of independently owned supermarkets in its portfolio, has seen its food and grocery earnings decline.

According to AAP, the group suffered an earnings drop of 22.9 percent in the food and grocery segment. However its liquor and hardware divisions have returned solid gains.

The independently owned and run chain of Mitre 10 outlets is part of the hardware portfolio.

Metcash has indicated in its half yearly results that “highly competitive trading conditions continue in all our markets, particularly food and grocery.”

Ian Morrice, the group’s chief executive, said a plan to transform the business would have a positive impact, Inside Retail reports.

“Importantly, we have seen a continuing improvement in the sales trend for the food and grocery pillar,” he said.

“We will look to develop future growth opportunities and invest in new channels.”