Grocers hit by spending slowdown, costs

PORTLAND, Ore.—Shares of grocers and food retailers slipped during the past three months because of a slowdown in consumer spending and higher costs for goods.

According to the Dow Jones U.S. Food Retailers & Wholesalers Index, stocks in this sector fell 5.3 percent for most recent three months. The move was part of a much larger dip over the past year. The index, made up of about 20 food retailers, fell nearly 22 percent in the past 52 weeks.

The best performing stocks during the past three months were those in the convenience store format, such as Pantry Inc. or Casey's General Stores Inc., or wholesalers, such as United Natural Foods Inc. or Sysco Corp. Shares of Pantry Inc. rose about 92 percent during the three-month period and shares of Sysco climbed more than 13 percent.

Traditional grocers were among the poorest performers on the index, as they struggled the most with changing shopping habits and how to balance the pricing for goods. The Great Atlantic & Pacific Tea Company Inc. dropped more than 53 percent; Supervalu Inc. fell more than 28 percent during the quarter and Safeway Inc. declined more than 18 percent.