IGA operator Metcash says Australians are keeping up the habit of shopping in their local communities even as pandemic restrictions ease as the company became the latest to report robust consumer spending over the past few months.

The ASX-listed retailer issued a trading update ahead of its annual general meeting on Wednesday revealing that sales are up by 8.9 per cent across its group for the first months of the 2023 financial year.

Food sales are up 4.3 per cent, while Metcash’s hardware sales across the IHG and Total Tools brands surged 19.5 per cent compared with the same time last year.

Liquor sales also jumped by 11.5 per cent as demand bounced back in bricks-and-mortar stores.

Inflation had some impact on the sales numbers, but the company highlighted it was also seeing strong consumer demand in the first months of the year.

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Sales were “supported by continued preference for local neighbourhood shopping underpinned by the improved competitiveness of our independent retail networks, and by inflation,” the company outlined in a presentation to investors to be given by chief executive Doug Jones on Wednesday afternoon.

In an address to shareholders, Metcash chairman Peter Birtles said while there are uncertainties about consumer spending on the horizon, it was clear that consumers continued to do more shopping in their local neighbourhoods than they did before the pandemic.

“Importantly, this shift and momentum has continued into the first half of [financial year 2023]... confirming that shoppers are continuing to enjoy the improved competitiveness of our network stores, and the service levels that only independent locals can provide,” he said.