Wall Street Journal today has article saying that Whole Foods stock decline is due to sympathy with the Supervalu problem, the grocery chain that announced it is putting all or part up for sale due to poor profitability.Groceries are receiving some attention in part due to fast rising corn and grain prices (due to drought) which will make costs rise, and stores will need to raise prices while keeping customers happy.You can also note though that stores will have nice inventory profits as the value of stuff on their shelves increases. And also exposure to problems in Europe is minimal--making groceries an excellent holding just now. People have to eat. Cutting back on restaurant spending should help groceries. And competitors prices are rising too--maybe even faster. Even Walmart, the old Nemesis, must be seeing higher costs.
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