By Paul Ziobro
Of DOW JONES NEWSWIRES
NEW YORK -(Dow Jones)- Price competition among grocery stores abated slightly in recent months, Safeway Chairman and Chief Executive Steve Burd said Thursday.
Supermarkets chains have been slashing prices to get customers to come in, which has taken a toll on sales. While the price environment still remains cutthroat, especially as grocers compete with Wal-Mart Stores Inc. (WMT) and other discount operators, Burd said the competition backed down in the latest quarter.
"While it is more competitive than it's been in a long time, here in the third-quarter, that has not stepped up vis-a-vis the second quarter," Burd told investors on Safeway's fiscal third-quarter earnings call. "If anything, it's softened a bit."
Earlier, Safeway reported earnings of 31 cents a share, ahead of analyst estimates, and also backed per-share earnings guidance for the year. Shares rose 1.02, or 4.8%, to $22.45.
Sales remained weak, with identical-store sales falling 3% in the quarter, due to lower prices and high unemployment.
-By Paul Ziobro, Dow Jones Newswires; 212-416-2194; paul.ziobro@dowjones.com