Jewel-Osco parent Supervalu says it had a steep loss of $1.47 billion in the fiscal second quarter due to charges tied to a labor dispute at its Shaw’s chain and employee-related costs. Adjusted to exclude the charges, earnings totaled $59 million, or 28 cents per share. That is a penny shy of the 29 cents a share analysts expected.
Revenue fell 9 percent to $8.66 billion. Analysts predicted $8.74 billion.
Supervalu Inc., based in Eden Prairie, Minn., also lowered its full-year earnings expectations. It now expects adjusted fiscal 2011 earnings of $1.40 to $1.60 per share, from prior guidance of $1.75 to $1.95. Analysts expect $1.69 per share.
The company’s shares fell 4 percent in premarket trading.
Supervalu, one of the weaker grocers going into the recession, has struggled with intense competition and finding the balance between customers’ need for low prices and fluctuating food costs.
“Supervalu, one of the weaker grocers going into the recession, has struggled with intense competition and finding the balance between customers’ need for low prices and fluctuating food costs.”
Apparently that doesn’t apply the Supervalu-owned Jewel-Osco. Unless one can take advantage of its gimmick deals (i.e., buy Kosher salami, cheese, and 2 lbs. of frozen crab legs for $19.95 and get a free beer), it isn’t even competitive with Dominick’s,* yet alone independent supermarkets.
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*Which just appropriated Jewel’s idea of preloading your card on the Web.
All true, but then Dominick’s doesn’t carry many of the grocery items we want because the buying department in Arizona says no, and its produce department is an obstacle course dedicated to distracting you from finding whatever it is you came in for by putting overpriced odds and ends in your path. Also they will outrageously overcharge for certain produce items if you don’t choose to get their card. Independent supermarkets are looking better and better by comparison, if only for their customer-friendly attitude.