The stock price of several grocers fell in trading Tuesday following a downgrade by a BMO Capital Markets analyst.
Analyst Karen Short lowered her price target for Jewel-Osco parent Supervalu Inc. to $11 from $13 and lowered earnings estimates, citing the company’s inability to drive traffic in its stores. Shares of Supervalu dropped 62 cents, or 6.6 percent, to $8.99 in afternoon dealings.
The food retailing industry went out of 2010 with a bang and is coming in to a new year with a whimper, said Short. She said the food retailing environment should improve modestly in the coming year, but said several grocers are still struggling after an extended period of intense competition, food price fluctuation and limited consumer spending.
Short also lowered her earnings estimates on industry leaders The Kroger Co. and Whole Foods Market Inc., noting limited upside for both companies in the short-term in what promises to continue to be challenging environment.
Shares of Kroger fell 34 cents, or 1.5 percent, to $21.67 by midafternoon while Whole Foods Market’s stock fell $1.80, or 3.6 percent, to $48.95.
I can not believe people eat out,let them spend a few hours in a restaurant kitchen…Yeckkkkkkkkkkkk