Last week Supermarket News published a story listing several reasons why supermarket analysts are optimistic about results for the first half of this year compared to the second half of last year. The reasons cited include the following:
- All the negative factors that impacted the first couple months of the year – like higher payroll taxes, higher gas prices and a bad flu season – are no longer present, and consumers have made necessary adjustments, helping to drive a successful second quarter.
- Supermarket powerhouse Kroger announced that it would no longer increase its price investments at an accelerated level, which may prompt others in the industry to follow their lead.
- The cooler weather has kept people home, which boosts supermarket sales. Last year’s warmer weather caused many people to eat out more.
- Economic conditions began improving after the holidays, which is good news for retailers.
- The industry has adjusted to Walmart’s aggressive programs.
Some analysts are not as optimistic, citing a lack of job growth, uncomfortable levels of household debt and unemployment.
I’m optimistic, mostly since it’s more fun to think that way.