Supermarket/Grocery

MEMPHIS, Tenn. — Fred's on Thursday reported sales of $452.7 million, up 1% compared with the year-ago period, for the second quarter ended July 30. On a comparable-store basis, second-quarter sales decreased 0.4% versus an increase of 2.5% in the same period last year.

"July's sales performance was consistent with the first two months of the quarter as external economic factors, including high unemployment and reductions in government aid, continued to have a negative impact throughout the Southeast," stated Bruce Efird, Fred's CEO.

BENTONVILLE, Ark. — Walmart announced that through its Acres for America program it is donating $500,000 to help protect, conserve and restore fragile urban ecosystems in Washington D.C., Chicago, Los Angeles, and New York City. 

Amid the gloom and doom this week around reduced traffic and a waning perception of its price advantage, Walmart got more potential bad news in the form of strong results from arch rival Target.

Little reason to believe Sam’s Club won’t easily meet or possibly exceed second-quarter same-store guidance that calls for an increase of 3% to 5%, following reports this week from Costco and BJ’s Wholesale club. Sam’s results correlate closely to its warehouse club rivals, and they both reported solid gains even after excluding the distorting effect of higher year-over-year gas prices.

July same-store sales at Fred’s declined 0.5% and that’s not a particularly good sign for Walmart, as the company prepares to release its quarterly results on Aug. 16. Fred’s appeals to lower income shoppers at its 672 stores in the Southeastern U.S. where the company has considerable overlap with Walmart.

As residents of San Jose, Calif., my wife Pamela and I have our choice of some of the nation’s leading grocers: Whole Foods, Trader Joe’s, Safeway. These companies set a high standard when it comes to quality and service, so it was with some reluctance, but a sense of adventure, that we gave Walmart To Go a try.

Purchase, N.Y. -- Apparel continued to show gains in July, while housing-related sectors such as electronics, appliances, and furniture remained sluggish, according to MasterCard Advisors SpendingPulse, a macroeconomic report tracking national retail and services sales. (The data estimates total U.S. retail sales across all payment forms including cash and check.)

In other findings, auto parts and service posted its first decline after five months of growth.

New York  City -- The Great Atlantic & Pacific Tea Company (A&P) has asked U.S. Bankruptcy Court in White Plains, N.Y., for a second extension of its deadline to submit an exclusive plan of reorganization to its creditors.

The supermarket operator is looking for an extension to Jan. 16, 2012, from a previous deadline of Dec. 31, 2011. In court papers, it said the extension  would provide it with "the very best opportunity for a successful exit from Chapter 11."
 

New York City -- Warehouse club operators  Costco and BJ’s Wholesale Club continue to benefit from high fuel prices and bargain-seeking consumers, with both chain reporting solid results.

Costco reported a 10% rise in same-store sales In July, beating Wall Street's expectations for an 8.6% increase.