GROCERS' LOSSES STILL MYSTERY STRIKE-LENGTH SAFEWAY EARNINGS REPORT TO BE RELEASED NEXT MONTH.Byline: Nicholas Grudin Staff Writer Supermarket revenues have taken big hits during the course of the 100-day strike, but the toll may be greatest in yet-to-be seen losses. ``This goes beyond bottom line,'' said industry expert Phil Lempert, adding a shift in customer loyalty may pose a bigger risk than picket lines. Albertson's and Kroger Co. both reported in third-quarter earnings statements they'd lost more than $100 million in revenue each, but their stock prices have remained relatively steady. Those reports only reflected the first few weeks of the strike and did not show just how much damage was done during the usually booming holiday season. Union estimates have placed the total losses for all three companies at more than $1 billion over the duration of the strike. Company officials would not comment. The most telling earnings report - Safeway's - will be released Feb. 12, and covers the duration of the labor dispute. The release of those losses, union leaders hope, will make shareholders rethink re·think tr. & intr.v. re·thought , re·think·ing, re·thinks To reconsider (something) or to involve oneself in reconsideration. re their stance. ``Once Safeway reports their actual losses, I think there will be a stockholder revolt REVOLT, crim. law. The act of congress of April 30, 1790, s. 8, 1 Story's L. U. S. 84, punishes with death any seaman who shall lay violent hands upon his commander, thereby to hinder or prevent his fighting in defence of his ship, or goods committed to his trust, or shall make a revolt ,'' said Rick Icaza, president of the United Food and Commercial Workers The United Food and Commercial Workers International Union is a labor union representing approximately 1.4 million workers in the United States and Canada in many industries, including agriculture, health care, meatpacking, poultry and food processing, manufacturing, textile and Local 770. ``We're talking about billions of dollars in lost revenues, and the stockholders are going to end up paying for it.'' But Daniel Mitchell, a professor of Management and Policy Studies at UCLA's Anderson School Anderson School may refer to:
``Whatever that number is, it won't necessarily be a shock,'' Mitchell said. ``Somehow, that number has been capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. into the price, and the earnings report may not mean much when it happens. Feb. 12 may not be all that significant a date.'' And financial analysts have held that enduring the supermarket strike is a wise long-term investment for the companies. ``We believe the big food retailing stocks Kroger, Safeway and Albertson's will shrug off shrug v. shrugged, shrug·ging, shrugs v.tr. To raise (the shoulders), especially as a gesture of doubt, disdain, or indifference. v.intr. the continued near-term earnings damage from the strike and should bounce back bounce v. bounced, bounc·ing, bounc·es v.intr. 1. To rebound after having struck an object or a surface. 2. on a resolution,'' according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. a Merrill Lynch Merrill Lynch & Co., Inc. (NYSE: MER TYO: 8675 ), through its subsidiaries and affiliates, provides capital markets services, investment banking and advisory services, wealth management, asset management, insurance, banking and related products and services on a global basis. research report from Jan. 7. According to Lempert, editor of Supermarketguru.com, the duration of the strike and the fact that it lasted through the holidays translates into the loss of regular customers. ``The longer this goes on, the more likely it is that supermarket shoppers will change their behavior - they are seeing new stores that they will get comfortable with. The old story is that if you can get people to shop for their groceries gro·cer·y n. pl. gro·cer·ies 1. A store selling foodstuffs and various household supplies. 2. groceries Commodities sold by a grocer. with you over a three- to four-month period, it is likely that you will keep them forever,'' Lempert said. ``One of the potential fallouts is that we may well lose some of the (major) chains from this region.'' Mitchell agreed that the long-term market share concern could be disastrous for Albertson's, Ralphs and Vons. ``The companies have calculated in losing sales and profits for the duration of the strike. It's not so clear that they've factored in permanent loss of market share as they push their customers to other sources of groceries.'' Nicholas Grudin, (661) 257-5255 nicholas.grudin(at)dailynews.com CAPTION(S): chart Chart: STORE WARS SOURCE: Daily News research |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion