US retailer Kroger has reported on a weaker second quarter of 2009, with net income down from US$276.5m in 2008 to US$254.4m.
Total sales at the group fell 2.2 per cent through the three-month period to US$18.1m, although sales increased by 3.5 per cent excluding fuel.
The group's results were hit by intensifying price wars between retailers and sharp price declines for staples such as fresh produce and dairy, Reuters reported.
'Sudden deflation in a highly competitive market can lead to retail prices and product costs that drop quickly, creating lower margins,' said Kroger chief operating officer Rodney McMullen in a conference call.
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