The economic recovery that had been expected for this year may have stagnated, David B. Dillon, chairman and chief executive officer of Kroger Co. here, told analysts last week.With Kroger predicting last week that inflation could rise 3% to 4% for the year, rather than the 1% to 2% the company had previously predicted, “we are looking for people to trade down or buy fewer discretionary items if things get a little tight,” Dillon said. “As inflation gets stronger, we think at some point people are going to stop having enough money to spend on food. But at this point it's still early. What we've seen recently is things have stagnated a little bit in the overall economy and behavior has plateaued at that point, so the overall recovery we had hoped for may not be quite what we had hoped it would be. But our tonnage is still solid, and what we are seeing are only modest changes in shopping trends.”
Source: SupermarketNews
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