Israeli supermarket retailer Blue Square Israel has posted a second-quarter loss, due in part to rising unemployment, lower disposable income of consumers and stronger competition.

Blue Square Israel reported a second-quarter loss of NIS28.4m (US$6.4m), compared to a year-earlier profit of NIS38.5m. Before one-time charges, Blue Square posted a profit of NIS10.9m.

The company reported a 2.6% rise in operating profit to NIS51.2m, helped by cost cuts.