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SuperValu margins pinched by price promotions

We’re still shopping thrifty at the grocery store, and that’s cutting into SuperValu‘s bottom line.

“My sense is the American consumer’s shopping habits have changed probably forever, certainly for a long time, and I don’t think we are going to wake up in a few months and everybody will be back to 2006,” SuperValu CEO Craig Herkert said, the Associated Press reports.

The grocers’ $2.1 billion profit for the three months ending Sept. 12 was lower than last year but better than analysts were forecasting, the company said in its statement.

One factor: The company’s margins are smaller because it’s relying on more frequent sales discounts and promotions to get us to buy their products.

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Comments (1)

  1. Submitted by Richard Schulze on 10/20/2009 - 05:47 pm.

    One word.. Aldy’s

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