SAN FRANCISCO — Supermarket chains, ground down by a year of price wars aimed at keeping hard-pressed customers, are starting 2010 wondering how much longer they can go without further harming their share prices. Grocery-sector stocks have taken a drubbing the past three months, with Kroger Co. (NYSE:KR) down 14%, Supervalu Inc. (NYSE:SVU) down 11% and Winn-Dixie Stores Inc. (NASDAQ:WINN) down 27%. Safeway Inc. (NYSE:SWY) is down 7%.
By comparison, the S&P 500 Index /quotes/comstock/21z!i1:inx (SPX 1,136, -12.46, -1.09%) is up 4% over the same period.
Steep discounts, which have been eating away at profit margins and forcing some grocers to change their promotional tactics, show no signs of abating.
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