And in contrast to the Wal Mart report on sales.....

[Sherman A1]

Feb 21 (Reuters) - Supermarket operator Safeway Inc on Thursday said store sales have strengthened from the previous quarter and it has seen no impact from higher payroll taxes, which have cut take-home pay for many shoppers.

If trends hold for the remainder of the week, Safeway's identical-store sales will be up 2 percent for the first eight weeks of the quarter, Steve Burd, Safeway's chairman and chief executive, said on a conference call with analysts.

Safeway's identical-store sales were up 0.8 percent, excluding fuel, for the fourth quarter.

At Safeway, that closely-watched measure includes results from established supermarkets that have not been replaced or significantly renovated.

http://www.reuters.com/article/2013/02/21/safeway-outlook-idUSL1N0BL4W420130221?feedType=RSS&feedName=cyclicalConsumerGoodsSector&rpc=43

[s-cubed]

1. That's good. We have Safeway stores, and a new Walmart nearby. I won't go in the latter,

but I hope it hasn't hurt Safeway.

[Yo_Mama]

2. That's sort of what you would expect

Pure grocery shopping should be impacted a lot less than the mix of discretionary/basic needs sold at Walmart.

People cut back on clothing/electronics/shoes/small luxuries before they do on food.

[Sherman A1]

3. Wal Mart carries a significant selection of grocery

so while you are correct in your assessment, it still appears that Wal Mart may be having some problems.

[Yo_Mama]

4. Walmart's grocery prices aren't that hot

But even if Walmart were gaining grocery shoppers, the losses expected from discretionary sales would overcome that gain until it got very large.

It's even more likely that if someone were going to buy a pair of pants, but now can't, that the person might go that week to a supermarket instead of Walmart, and thus Walmart would lose doubly. With gas prices this high, people don't drive around as much as they used to.

It's early days yet with the FICA increase, because most people won't react much for a few months.