By George Anderson
Good news was hard to come by for large supermarket chains yesterday.
Safeway saw its share price plummet to a 52-week low after warning its earnings would fall as much 11 cents below consensus estimates.
Prices of other grocery stocks were also off significantly yesterday. Wal-Mart, Kroger, Albertsons and A&P were among those who saw share price declines for the day.
In other news, Burt Flickinger III, managing director, Strategic Resource Group, told The Star-Ledger of Newark, NJ, "A&P is actively shopping the 24 (New Orleans') stores that operate under the A&P and Sav-A-Center banners, as well as a distribution center."
Moderator's Comment: Are Safeway's Steve Burd and A&P's Christian Haub the right leaders for their companies under current circumstances?
We have to admit being among those who profusely praised Steve Burd when Safeway was going strong. We gave him too much credit then and probably are placing too much blame on him at present. That said, Safeway needs a marketer/merchandiser running the ship now. Even Mr. Burd, we think, would agree that his talents lie elsewhere.
Many have privately expressed over the years that Christian Haub got his job due to family connections. We've tended to dismiss those claims as backbiting because Mr. Haub is clearly very intelligent and understands retail. But, as a wise nine year old recently said to her big brother, "Just because you're intelligent, doesn't mean you're smart." [George Anderson - Moderator]
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