SAN FRANCISCO — Investors discounted the supermarket sector Thursday after Kroger Co. continued to cut prices to retain shoppers, keeping a lid on gross-margin growth in its third quarter.
In a conference call, Kroger Chief Executive David Dillon said competition remains intense for shoppers but hasn’t worsened from earlier this year.
“Overall, the economic recovery is slower and weaker than we anticipated it would be at this point in the year,” Dillon said. “Many of our customers remain cautious in their discretionary spending.”
He said deflation persists in most Kroger grocery categories, except for meat, dairy and produce items.
To read the rest of this story please go to: MarketWatch
