US grocer Kroger has warned that earnings for the year would be flat - compared to the 10% to 12% rise it had anticipated - due to extra promotional costs incurred to attract shoppers.
For the third quarter ended November 9, Kroger said like-for-like sales fell 1.3% excluding fuel while total sales rose 2.8% to $11.7bn.
CEO Joseph Pichler said: “The combination of a weak economy, rising unemployment, product cost deflation and continued aggressive competition has created a difficult operating environment. It is not clear when consumer confidence will improve.
“In addition, we anticipate that health care and pension costs will increase substantially in 2003.”
For the third quarter ended November 9, Kroger said like-for-like sales fell 1.3% excluding fuel while total sales rose 2.8% to $11.7bn.
CEO Joseph Pichler said: “The combination of a weak economy, rising unemployment, product cost deflation and continued aggressive competition has created a difficult operating environment. It is not clear when consumer confidence will improve.
“In addition, we anticipate that health care and pension costs will increase substantially in 2003.”
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