Supervalu posts $1.47 billion Q2 loss
Eden Prairie, Minn. Supervalu posted a loss of $1.47 billion in the fiscal second quarter because of charges tied to a labor dispute at its Shaw’s chain and other employee-related costs. The supermarket operator also cut its full-year guidance.
“Our sales performance continues to reflect a difficult operating environment,” CEO Craig Herkert said.
Adjusted to exclude the charges, earnings totaled $59 million.
The company said the Shaw’s labor dispute was settled early in the quarter.
Revenue fell 9% to $8.66 billion. Same-store sales fell 6.5%.
Consumer Sentiment Index declined in October
Ann Arbor, Mich. — The Thomson Reuters/University of Michigan preliminary index of consumer sentiment, released Friday, showed that confidence among U.S. consumers unexpectedly declined in October, with Americans more pessimistic about current economic conditions.
The index decreased to 67.9, the lowest since July, from 68.2 in September.
Unemployment projected to remain above 9% through next year may keep weighing on sentiment and make Americans reluctant to ramp up their spending, which accounts for 70% of the economy.
The Thomson Reuters sentiment index averaged 89 in the five years leading up to the recession that began in December 2007 and has yet to reach that level since the recovery began in June 2009.
Separate figures from the Labor Department on Friday showed consumer prices rose 0.1% in September, less than forecast. The Commerce Department said Friday that retail sales climbed more than forecast in September; spending rose 0.6% following a 0.7% gain in August that was larger than previously estimated.
Consumer expectations for six months from now, which more closely projects the direction of consumer spending, rose to 64.6 from 60.9, which was the lowest since March 2009, according to the Friday sentiment index.
The survey’s measure of current conditions, which reflects Americans’ perceptions of their financial situation and whether it is a good time to buy big-ticket items such as cars, dropped to 73, the lowest since November, from 79.6 in the previous month.
Other index results showed that consumers expect an inflation rate of 2.6% over the next 12 months, compared with 2.2% projected in September.
McDonald’s targets LEED Gold for California site
New York City — A renovated McDonald’s in Riverside, Calif., became the first McDonald’s west of the Mississippi, and the fourth in the United Sates, to seek LEED (Leadership in Energy and Environmental Design) Gold certification.
The building, which has stood as a McDonald’s restaurant for 44 years, reopened after a renovation that made the building more sustainable and energy-efficient. The new green features include:
- Light colored hardscape to reduce heat emissions from site;
- Native drought tolerant plants to reduce water consumption by landscape;
- Low flow plumbing fixtures to reduce water usage;
- Installation of 294 photovoltaic panels to generate a percentage of the restaurant’s power consumption; and
- Recycled denim insulation inside the building.
The restaurant features an interactive touch-screen display for visitors to learn about the building, environmental sustainability, and how individuals can reduce their carbon footprint.
Other LEED-certified McDonald’s restaurants are located in Cary, N.C., Savannah, Ga., and Chicago. The Riverside restaurant expects to receive LEED certification within one year.