David Dillon, chief executive officer at US-based retailer Kroger has said this week that he feels it will be 'a couple of years' before the economy regains momentum, as customers opt to spend little and save more.
Speaking at Hutchison Community College in the US, Mr Dillon also said that Kroger would continue to target customers looking for higher quality and more convenience, rather than retailer aiming for price leadership, Planet Retail reported.
He also felt that the grocery sector had become more competitive in the US: 'I think that's a direct result of the economy, with a number of retailers hurting for sales and they're having to step it up a notch to get sales in the door. That means we've had to respond in kind to make sure we protect our market share, so you'll see the advantage of that as a customer.'
Robson Walton, chairman of Wal-Mart, also warned this week that the global economic recovery is likely to take time, and expects that recovery to be led by Asian countries such as China and India.
Speaking at a global CEO business conference, Mr Walton said: 'There is a change and opportunity in the crisis. If we want to be successful, we have got to change. We are working very hard to get our cost down and develop high-efficiency smaller stores to go into urban areas.'
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