Retailers, consumers and prices
Check out where the groceries are bought.
Family Dollar and Supervalu both reported quarterly results today and they seem to highlight the shift in where people are shopping.
Family Dollar saw an 8 percent increase in sales, driven in part by food. The company also raised its forecast for full-year earnings.
Meanwhile grocery store operator Supervalu had flat sales and cut its earnings forecast for the full year.
As the economy remains mired in a recession, people have been shopping places where they can save money. Wal-Mart has been the big winner, but Family Dollar says they are getting a share of that business, too.
“As more families face financial challenges in this environment, they are relying on Family Dollar for more of their everyday needs,” Chairman and CEO Howard Levine said in a statement.
So while Family Dollar is seeing sales grow in the here and now, Supervalu is cutting costs and says it is focusing on the long term in the face of “cautious consumer spending.”
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