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Grocery Stores - Between Divesture, Expansion and Health Trends



       Grocery Stores - Between Divesture, Expansion and Health Trends

  PR Newswire

  LONDON, January 15, 2013

LONDON, January 15, 2013 /PRNewswire/ --

2013 looks poised to be an interesting year for companies in the grocery store
industry, as individual companies such as Supervalu Inc., The Kroger Co.,
Safeway Inc. (NYSE:SWY), Whole Foods Market Inc. and The Fresh Market Inc.,
have all been making charges in an attempt to capture a greater market share.
Some companies have been divesting themselves of certain assets so as to
better focus on select areas of business, while others have been opening new
locations. With the U.S. economy continuing to recover as well as a greater
importance being put on health, the growing demand for organic and healthier
foods has also had an influence on what retailers are stocking the shelves
with. Several companies have also turned in stellar quarterly results of late
which have drawn the eye of a number of investors. While the industry
currently has a lot going for it, an economic stumble at home or rising input
costs could shirk margins in an already highly competitive marketplace. See
how companies in this grocery stores industry have fared the past year and
what our analysts predict for their 2013 performance. Sign up now for free at

http://www.stockcall.com/register      

The challenging economic climate has led companies to take a variety of
approaches to best move forward. In the case of Supervalu (NYSE:SVU), the
company newly announced a definitive agreement whereby it will sell its
Albertsons, Acme, Jewel-Osco, Shaw's and Star Market stores, as well as
related Osco and Sav-on in-store pharmacies to AB Acquisition LLC in a deal
worth $3.3 billion (approximately $3.2 billion in debt and $100 million in
cash). Upon completion of the deal, Supervalu will have three market-leading
business units to focus on. The Fresh Market (NASDAQ:TFM), on the other hand,
has been expanding its business of late. The company has opened several new
stores, including its first in California, and has leases for four new stores
in Houston, Texas, which, according to the company, should be up and running
in the second half of fiscal 2013. A number of companies have also been
offering discounts on certain items, in an attempt to grow their sales and
customer loyalty. Safeway falls into this category, as the company offered
deals on a number of popular items over the holidays. Sign up today to get our
analysts' insight on these grocery stores stocks

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A growing number of individuals in the U.S. are paying more attention to what
they are eating, and are also willing to pay more for healthier options.
Organic foods are no longer confined to a small section in grocery stores, and
a focus on health has improved sales for a number of companies that specialize
in it. Whole Foods Market (NASDAQ:WFM) certainly fits into this category, and
the company has newly announced a new line of snacks, breakfast foods and
pantry items designed to cater to the health conscious consumer. The line is
called Engine 2 Plant-Strong products, and has been developed with Rip
Esselstyn, author and founder of "The Engine 2 Diet™".

On the earnings side of things, select industry players, such as The Fresh
Market and The Kroger Co. (NYSE:KR), have been turning in solid results. In
its most recent quarterly report, The Fresh Market saw its net sales jump by
22.1% and comparable store sales rise 5.6% compared to the same period a year
ago. Net income was also impressive, coming in at $10.9 million, a 19% rise in
year-over-year comparisons. The Kroger Co. also turned in strong numbers, with
sales and adjusted earnings per diluted share increasing when compared to the
same period last year. You can speak on one of our financial experts to get
in-depth analysis on Kroger's recent quarterely earnings. Register at

http://www.stockcall.com/register

With Americans loosening their purse strings in the wake of better economic
times, grocery stores look well positioned to take advantage of the improving
trend. If input cost increase stores could see a return to razor thin margins,
but for now, the industry looks well equipped to start the year off strong.

On the earnings side of things, select industry players, such as The Fresh
Market and The Kroger Co., have been turning in solid results. In its most
recent quarterly report, The Fresh Market saw its net sales jump by 22.1% and
comparable store sales rise 5.6% compared to the same period a year ago. Net
income was also impressive, coming in at $10.9 million, a 19% rise in
year-over-year comparisons. The Kroger Co. also turned in strong numbers, with
sales and adjusted earnings per diluted share increasing when compared to the
same period last year.

With Americans loosening their purse strings in the wake of better economic
times, grocery stores look well positioned to take advantage of the improving
trend. If input cost increase stores could see a return to razor thin margins,
but for now, the industry looks well equipped to start the year off strong.

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Contact: William T. Knight, info@stockcall.com, +1-646-396-9857 (9:00 am EST -
01:30 pm EST)
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