Page 24 - ARUBA TODAY

Friday 16 June 2017 BUSINESS
A24
US homebuilder sentiment edges lower in June

By ALEX VEIGA has been above 60 since a sharp increase in March. remains tight, which limits frustration over an ongoing
AP Business Writer September. May new-home sales data sales. shortage of skilled labor
U.S. homebuilders are feel- The June index fell short of are due out next week. Construction of new homes and buildable lots that is
ing slightly less optimistic, a analyst predictions, which Despite the April sales slow- fell for a second straight impeding stronger growth
shift that follows a big drop called for a reading of 69, down, homebuilders have month in April, pushing ac- in the single-family sec-
in sales of new homes in according to FactSet. been benefiting this year tivity to a seasonally ad- tor,” said Robert Dietz, the
April. Readings gauging builders’ from increased demand justed annual rate of 1.17 NAHB’s chief economist.
The National Association of view of sales now and over for homes, which has sales million units. This month’s builder index
Home Builders/Wells Fargo the next six months also fell are running ahead of last That’s the lowest point in was based on 252 respon-
builder sentiment index re- from last month. A measure year’s pace. five months. dents.
leased Thursday declined of traffic by prospective More Americans are in a Builders continue to grap- A measure of current sales
to 67 this month. That’s buyers also edged lower. buying mood as job secu- ple with a shortage of conditions for single-family
down two points from a Sales of new homes regis- rity has improved with low skilled construction workers homes fell two points to 73,
downwardly revised read- tered the biggest monthly unemployment. and land parcels cleared while an outlook for sales
ing of 69 in May. drop in more than two But even with construc- for home construction. over the next six months slid
Readings above 50 indi- years in April, sliding to a tion running ahead of last “As the housing market two points to 76. Builders’
cate more builders view seasonally adjusted annual year’s pace, the supply of strengthens and more buy- view of traffic by prospec-
sales conditions as good rate of 569,000. new and existing homes ers enter the market, build- tive buyers declined two
rather than poor. The index The April decline followed across much of the country ers continue to express their points to 49.q
Sale on milk and eggs: Kroger cuts outlook amid price fight

ter more than seven years specials for 39-cent crois-
of uninterrupted growth. It sants and 79-cent choco-
also cut its profit outlook for late bars. The two chains
the year, citing the moves have taken market share
it’s making to adapt to in the United Kingdom, and
the “upheaval” in food re- are looking to repeat that
tailing and to keep prices success in the U.S. with their
competitive. no-frills stores that focus on
Kroger said it had to re- affordable house-brand
spond when rivals in some products. Grocery giant
regions ran “hot features” Walmart has also been
on milk and eggs during working on lowering prices.
the first quarter. The Cincin- More broadly, Kroger ex-
nati company stressed that ecutives acknowledged
it does not plan to “lose on Thursday the big changes
price.”“We’re going to re- in how people are getting
act, and not allow our cus- their food. Online leader
tomers to think they have Amazon is expected to
to go somewhere else for continue expanding its gro-
the best value for those cery business, and meal-kit
products,” Chief Financial delivery companies like
Kroger grocery store bags are removed from a shopping basket in Flowood, Miss., as customers Officer Michael Schlotman Blue Apron are aggressive-
shop for early weekend bargains, Thursday, June 15 2017. Intense competition among grocers is said during a conference ly trying to enlist new cus-
forcing Kroger to slash prices on popular items like milk, eggs and other staples that help sway call with analysts. tomers.Still, Kroger execu-
where shoppers go. The pressure comes amid a tives believe the company
(AP Photo/Rogelio V. Solis) price fight among grocers. has an advantage offering
By CANDICE CHOI slash prices on popular erates Fred Meyer, Ralphs German discounter Aldi has a wider breadth of services
AP Food Industry Writer items like milk and eggs and Fry’s, on Thursday re- been aggressively expand- than discounters, and that
NEW YORK (AP) — Intense — staples that help sway ported its second straight ing, while its European rival many people like going
competition among gro- where shoppers go. quarter of declining sales Lidl opened its first 10 stores into physical stores to do
cers is forcing Kroger to The company, which op- at established locations af- in the U.S. this week with their shopping. q
Nike to slash 1,400 jobs, cut sneaker styles in shakeup

NEW YORK (AP) — Nike on its feet. Thursday that it plans to basketball shoes Nike is fa- the fashion shift away from
wants to be more nimble The sneaker maker said focus on the hottest-selling mous for may be outdated. performance basketball
sneakers, slash the number More people are choos- to retro,” said Matt Powell,
of styles it offers and sell ing fashion over function, the sports industry analyst
more shoes directly to cus- with sales of classic sneak- at NPD. “They still have not
tomers online as part of a ers industry-wide climbing caught up.”Adidas, whose
restructuring in which it also 26 percent last year, ac- casual Stan Smith shoes
will cut about 1,400 jobs. cording to research from have become popular
Nike said the moves will The NPD Group. Mean- again, has made a push
help it offer products to while, sales of running per- to increase sales in the U.S.
customers faster as it is fac- formance sneakers were The German company said
ing increasing competition flat and sales of basket- last month that first-quarter
from smaller brands and ball performance sneakers revenue in North America
premium labels. Another dropped, according to the jumped 31 percent from a
problem: The running and same report.“Nike missed year before. q