Shares in Ingles Markets dropped 8% today (3 February) after the US retailer reported lower earnings for its first quarter.

Net income fell 17.6% to US$9.5m for the three months to 28 December. 

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Net sales were up 1.1% finishing at $945.1m. However, Ingles said grocery segment comparable-store sales dropped 0.8%, as, despite an increase in weekly customer visits, the average transaction amount decreased.

Sales came under pressure as the retailer lowered prices, a tactic defended by CEO Robert Ingle.

He said: “We wanted to keep prices low for our customers throughout the holiday season. We believe these actions strengthened ties with our customers and will benefit us in the long run.”

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At the end of last year, the company booked an increase in annual sales and underlying profit. Net sales were up 0.5% and comparable store sales were up 1.8%.

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