Earnings of supermarket chains in the US has downgraded
Earning levels of supermarket chains in the US during 2010 has downgraded significantly as a result of high number of consumers looking for bargain deals. This insight was published during the food marketing convention in the US. The second quarter earnings before taxes has gone down by 1.57 percent, while consumers reduced their supermarket store visits to 1.69 per week, the lowest figure in the past 62 years. 34% of the consumers visited the stores only once a week, in comparison to 29% last year. The single visit in two weeks to the supermarket figures have also grown to 20% in comparison to 12% during 2010.
Editorial comment: The main reason is the recession that still exists in the US and influences the various consumers. Other than that, there is a need to look at the increase of online consumption taking place on behalf of store visits, and also the big portfolio of group coupons available, like the Groupon concept.