Retailers, consumers and prices
Check Out Line: How oil prices and consumers influence earnings
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.
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