Strike Hurts Albertsons, Bodes Ill for Competitors

If Albertsons (ABS Quote) earnings report on Friday is any indication, the strike in Southern California is having an even bigger-than-expected effect on the grocery chains.

Albertsons reported that its third-quarter earnings dropped 47% to 25 cents a share. A year ago, Albertsons earned 47 cents a share. Despite the strike, the company's sales did increase in the quarter, rising 1.6% to $8.79 million. But on a same-store basis, which compares results at like outlets open more than one year, Albertsons sales fell 0.8%.

The company's sales topped Wall Street's expectations of $8.76 billion in sales, but its earnings fell a whopping 12 cents a share short of consensus. ...