NEW YORK ( TheStreet) -- Supervalu ( SVU) reported a 40% plunge in first-quarter profit, as the grocery sector remains trapped in a pricing war. During the quarter, the company earned $67 million, or 31 cents a share, compared with $113 million, or 53 cents, in the year-ago period. Excluding after-tax charges, Supervalu would have earned 43 cents a share, beating analysts' estimates by a penny. Revenue dropped 9.6% to $11.5 billion, as Supervalu shuttered locations and exited markets, which it continues to do. This follows rival Safeway's ( SWY) disappointing second-quarter results. The grocer also saw its profit tumble 40%. As a result, Safeway cut its full-year outlook, saying it doesn't expect a rebound until the fourth quarter. Traditional grocers have been pressured as discounters like Wal-Mart ( WMT)and Target ( TGT) ramp up their fresh and processed food offerings. Shares of Supervalu are up 2.2% on the day, to $11.83. --Reported by Jeanine Poggi in New York. Follow TheStreet.com on Twitter and become a fan on Facebook.