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Friday 2 december 2016 BUSINESS
A24

Cincinnati’s Kroger digs in with food prices tumbling

CINCINNATI (AP) — Kroger est retailers in the world are covery, food should cost between $2.10 and $2.15. A smaller survey by Zacks
lowered its profit expecta- unable to lure more cus- more, but tumbling com- That figure excludes a 7 Investment Research had
tions for the year as it fights tomers given the trend in modity and energy prices cent charge related to an average estimate of 42
with other grocers for more food prices. are pushing most grocery pensions. cents per share.
of the customers’ dollar According to U.S. statis- prices lower. Its profit during the third Kroger, however, beat ex-
even as food prices fall. tics released two weeks The consumer price index quarter was $391 million, pectations on revenue,
The nation’s largest gro- ago, prices for the food for meats, poultry, fish, and down almost 9 percent which rose nearly 6 per-
cery chain has historically that Americans take home eggs declined for the 14th compared with $428 million cent, to $26.56 billion.
had leverage in the indus- fell 2.3 percent over the consecutive month in Oc- last year. Shares of Kroger Co. rose
try with suppliers because past 12 months, the largest tober, according to the Bu- On a per-share basis, the $1.06, or 3.3 percent, to
of its size, but now it’s com- decline since 2009 when reau of Labor Statistics. Cincinnati company’s prof- close at $33.36, but have
peting with companies like the nation was staggering On Thursday, Kroger low- it was 41 cents, matching fallen 20 percent since the
Wal-Mart and Target as through the worst econom- ered its 2016 per-share prof- Wall Street expectations, beginning of the year and
well. ic downturn in decades. it expectations by a nickel according to a survey of in- about 13 percent in the last
And even some of the larg- Given the economic re- on the high and low end, to dustry analysts by FactSet. 12 months.q
Black Friday deals lift American auto sales in November

DEE-ANN DURBIN of the fall. July was the last
TOM KRISHER month that sales increased
AP Auto Writers year-over-year. The av-
DETROIT (AP) — Black Fri- erage discount per ve-
day deals and postelec- hicle last month was near
tion confidence helped $4,000, up by $600 from the
pull November U.S. auto same month last year, said
sales out of their recent Jeff Schuster, senior vice
slump — and increased president for forecasting
the chances that 2016 at the consulting firm LMC
could set a record for new Automotive. Automakers
vehicle sales. and dealers have always
Total U.S. sales rose 4 per- flooded the airwaves with
cent for the month to 1.38 holiday ads in December.
million units. That makes it But Black Friday is taking
the highest November on on increasing importance.
record, beating the previ- Since 2013, sales during the
ous record of 1.32 million weekend after Thanksgiv-
set in 2001, according to ing have been nearly dou-
Kelley Blue Book. ble the sales during a typi-
Toyota Division General cal November weekend,
Manager Bill Fay said No- according to car shopping
vember sales were so site Edmunds.com. Prior to
good that the industry may This photo shows the front of a 2016 Nissan Altima at a Nissan dealer, in Miami. Black Friday deals 2013, automakers only saw
even break last year’s sales and postelection confidence helped pull November U.S. auto sales out of their recent slump — a 39 percent increase in
record of 17.47 million. and increased the chances that 2016 could set a record for new vehicle sales. sales that weekend.
“I think it will be right (AP Photo/Alan Diaz) “Dealers and automak-
around last year’s record, ers clearly have found
maybe a little bit less,” Fay jumped 10 percent over sales rose 7.5 percent. Even 14 percent as it made big a way in recent years to
told The Associated Press last November. Ford’s sales Volkswagen, which has cuts in sales to rental car break through the Black
in an interview in Detroit. were up 5 percent, while struggled all year because companies. Other auto- Friday clutter and connect
“But I think either way ev- Toyota and Hyundai both of its diesel cheating scan- makers were expected to with more car shoppers,”
erybody will sign up for a saw 4 percent sales increas- dal, saw sales rise 24 per- report sales later Thursday. said Jessica Caldwell, Ed-
lifetime of this.” es. Honda’s sales were up cent. Fiat Chrysler bucked Higher incentives enticed munds’ senior director of
General Motors’ sales 6.5 percent and Nissan’s the trend, with sales falling buyers who sat out much industry analysis. q

Dollar General key sales figure falls as store traffic drops

GOODLETTSVILLE, Tenn. (AP) income customers to trim 6 percent at the opening 7 percent and compara- or 86 cents per share, in the
— Dollar General put up spending. bell. Shares had surged to a ble-store sales, a closely same quarter a year ago.
weak earnings numbers for Almost two dozen states three-month high last week watched barometer in the Per-share earnings, adjust-
the third quarter in an en- have altered the Supple- after rival Dollar Tree post- retail industry, fell as foot ed for non-recurring costs,
vironment that has largely mental Nutrition Assistance ed better-than-expected traffic in Dollar General were 89 cents per share,
favored bargain stores, Program, giving a smaller profits. “The challenging stores faded. 4 cents short of Wall Street
with so many people still of pool of people access retail environment that we Industry analysts had ex- expectations, according to
looking to cut costs where to assistance. Dollar Gener- experienced in the 2016 pected a slight increase in analysts surveyed by Zacks
they can. al has a strong presence in second quarter continued same-store sales, but they Investment Research.
The Goodlettsville, Tennes- many of the states involved into the third quarter, con- slipped 0.1 percent during Revenue rose 5 percent to
see, retailer cited lower in the cutbacks. tributing to weakness in our the quarter. $5.32 billion, though that
food prices and a cut in The company on Thursday same-store sales and our fi- Net income fell to $235.3 was also short of the $5.36
food-stamp benefits in sev- lowered its profit expecta- nancial performance,” said million, or 84 cents per billion that Wall Street was
eral states that forced low- tions, and shares slumped CEO Todd Vasos. Profits fell share, from $253.3 million, looking for. q