Shop Talk

Retailers, consumers and prices

Check Out Line: How oil prices and consumers influence earnings

July 22, 2008

consumer.jpgCheck Out how the spiking price of oil and lifeless consumer spending are affecting more consumer companies.

Supervalu, whose chains include Albertsons and Save-A-Lot, didn’t see any increase in its total quarterly sales. Its food sales were actually down 0.7 percent, but the company saved itself in part with lower expenses, and reported a higher quarterly profit.

But the No.3 U.S. supermarket chain cut its full-year outlook, acknowledging the effect of tight consumer spending, as shoppers are increasingly squeezed by high gasoline and food prices.

Pizza chain Domino’s didn’t think much of its situation either. 

The company’s second-quarter profit, excluding some items, missed Wall Street’s estimates and its Chief Executive David Brandon said returning to positive same-store sales in the United States has “proven difficult” for the company. The problem? The same as it is for others– high costs, struggling consumers.

“We are in a turnaround mode, which is not fun,” Brandon said.

No fun indeed, as is the case for most companies these days.

 Also in the basket:

SunTrust sells big Coke stake, profit falls 21 percent

Hermes sees no reason to join CAC 40, shares fall

Unilever agrees to Bertolli olive oil/vinegar sale

U.S. back-to-college spending to fall this year – survey

Protests, ambush marketing hurt Olympic brand

Why Dora the Explorer Can’t Come To Your Kid’s Birthday Party – (WSJ)

(Photo: Reuters)

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