New York City Shares of several major grocers fell on Tuesday as concerns grew of possible "price wars" among stores grew.
Citi Investment research analyst Deborah L. Weinswig said on Tuesday the heightened competition among grocers has prompted some regional grocers to cut prices, while other retailers are offering more promotions to gain market share. That competition to draw cash-strapped consumers is likely to continue, driving down prices and revenue, Weinswig said Tuesday.
The analyst downgraded shares of Kroger Co. and Safeway Inc.
Weinswig kept a "Hold" rating on Supervalu Inc., on strong same-store sales from the company. She also kept her "Buy" rating on Wal-Mart Stores shares, saying the world's largest retailer will also gain from demand for private-label products. She did lower her price estimates on both and shares of both grocers dipped in trading Tuesday.