Whole Foods, Supervalu May Face Cap-Ex Issues: Analyst

A tight credit market could cause retailers Whole Foods Market and Supervalu to alter their growth plans in 2009, according to an analyst report from Credit Suisse published Wednesday at Barrons.com.

NEW YORK — A tight credit market could cause retailers Whole Foods Market and Supervalu to alter their growth plans in 2009, according to an analyst report from Credit Suisse published Wednesday at Barrons.com. Whole Foods, according to the report, “will need to raise additional capital soon and/or begin to exit new store leases,” unless sales stabilize and the company meets its earnings projections in 2008 — “which seems unlikely,” given the stores’ discretionary appeal, according to the report. Supervalu, it added, “is less comfortable than many perceive,” and could cut capital expenditures in 2009 if credit markets do not thaw, the report added. Stock in both companies closed up slightly Wednesday.

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