Food Lion and Kash 'n Karry Losing Price War

By George Anderson

Delhaize has cut its forecast for the second time in two months, because of slower sales in its U.S. operations, says the Bloomberg news service. A weakening economy and Wal-Mart are given as the reasons for the company's lower profit projections.

"It's a nightmare come true,'' said Julien Picard, an analyst at Fideuram Wargny Societe in Paris. "The U.S. economy is bad, their same-store sales are dropping, and they are the weak neighbor to strong players like Wal-Mart. The outlook looks very bad."

Delhaize expects total sales to be approximately two percent lower than last year. Same-store sales will be down as much as one percent from 2001.

Moderator's Comment: Is there room for two or more operators of low-price, self-service grocery stores selling national brands when one of them is Wal-Mart?

Yes, there is. The room (excluding Wal-Mart's share) just happens to be appreciably more cramped than it has in the past. [George Anderson - Moderator]

• Delhaize Cuts Earnings Forecast as U.S. Sales Falter - Bloomberg