Tuesday, January 11, 2011

Safeway (NYSE:SWY), Kroger (NYSE:KR), Winn-Dixie (Nasdaq:WINN) Dragged Down by Supervalu's (NYSE:SVU) Performance

Supervalu (NYSE:SVU) had a disastrous third quarter, generating concerns the overall grocery sector could be under pressure, including Safeway (NYSE:SWY), Kroger (NYSE:KR) and Winn-Dixie (Nasdaq:WINN).

Consequently, the shares of Safeway, Kroger and Winn-Dixie are all down today in response to the pressure.

Grocers, including Supervalu, implemented a costly promotional strategy for the Christmas season to attract consumers to the stores.

With Supervalu failing to produce from their efforts, the question is how the other grocers, and ultimately, buy extension, other retailers fared as well.

Safeway was trading at $20.95, down $0.21, or 0.99 percent, as of 1:00 PM EST. Supervalu fell to $7.65, down 0.94, or 10.94 percent. Kroger was trading at $21.38, down $0.16, or 0.72 percent. Winn-Dixie was trading at $6.33, losing $0.08, or 1.25 percent.

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