Supervalu Not Such a Supermarket

Supervalu (SVU Quote) is raising a red flag, warning first-quarter earnings will be significantly below expectations.

The dreary news sent shares of the supermarket chain plunging 12% to $13.77 in afternoon trading.

Despite price cuts and higher level of promotions -- and the intuitive sense that it would perform well in a slumping economy; its name, after all, combines the words "super" and "value" -- cutbacks by consumers are taking a toll on the grocery chain.

Analysts forecast a profit of 65 cents a share for the quarter ended June 20. ...