Albertsons, US’s second largest grocery retailer, has reported a drop in second quarter profit due to the continuing impact of the company’s Southern California labour strike.

Total sales for the company rose to $10.2bn from $9bn last year, boosted by the acquisition of grocery retailer Shaw’s. However, profit for the quarter fell to $104m from $162m a year ago.

Same store sales, excluding any new or refurbished stores fell 1.5% in the quarter.

Albertsons, along with US rivals Safeway and Kroger, has been slashing prices to compete with discounter like Wal-Mart, said Reuters.