OKLAHOMA CITY -- Homeland Stores here reported a drop in sales and a loss for the 12-week third quarter ended Sept. 6.
flected a 3.2% reduction in same-store sales. Kordisch said that drop was the result of several new competitive store openings during the quarter, low food inflation, more stringent rules concerning food-stamp eligibility and increased promotional spending.
He said the company expects total sales will benefit during the fourth quarter from the acquisition of four supermarkets, including three former Food Lion units, which reopened as Homeland stores Oct. 15.
As announced, Food Lion is closing five other units in Homeland's market area, and the exit of that competitor will also spur sales, he said.
For the quarter, Homeland reported sales of $114.9 million, down 2% from $117 million in the year-ago quarter. Homeland reported a loss of $3.5 million for the quarter, compared with net income of $40.3 million in the previous third quarter.