Midwestern grocer Roundy’s saw sales drop in the second-quarter as the group decreased its investment in pricing and promotions.
The company booked a 1.7% drop in second-quarter sales, which slid to US$980.3m. Gross profit in the period dropped 0.9% as the company’s margin was boosted by lower spending on promotional activity. However, this saving were partially offset by increased shrinkage, the company said.
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The second-quarter decline dampened year-to-date sales figures. In the first half, net sales were up 1.5% to $1.96bn.
However, weaker margins meant first-half profitability was down year-on-year. Adjusted net income was $22.1m, compared to $29.5m in the prior year, while adjusted EBITDA totalled $95.1m, down from $109m last year.
