US grocer Albertson’s said third quarter sales fell 4.2% on the back the weak economy Stateside and increased competition.

For the period ended October 3, sales dropped to $8.66bn from $9.04bn, while net income rose 9.1% to $192m compared with $176m last year.

Boss Larry Johnston said Albertson’s would focus on investing more in promotions and innovative marketing programmes to boost sales. The company also wants to reduce costs by $750m.