International News - Profits fall at US grocers as strikes bite

Albertsons and Kroger have reported a fall in profits as the ongoing US grocery workers' strike starts to bite.

Albertsons estimated third-quarter sales were US$132 million (£76.1 million) below expectations because of the strike. Sales for the period rose only 1.6 per cent to US$8.8 billion (£5.07 billion). Profits halved to US$92 million (£53.1 million) compared with US$188 million (£108.4 million) last year.

Krogers third-quarter profits slumped 57 per cent to US$ 110.2 million (£63.2 million).

Over the past two months, the unrest, involving more than 70,000 workers, has spread from its epicentre in southern California to other US states.