SAN JUAN, Puerto Rico -- Pueblo Xtra International here said increased competition and weakness in the economy in Puerto Rico and the U.S. Virgin Islands resulted in declines in same-store sales in its retail food division of 9.9% and 9.5%, respectively, for the second quarter and first half ended Aug. 11.
e quarter and $5.5 million for the half -- an improvement over the $8.2 million and $9 million, respectively, in the comparable periods a year ago, the company noted, due to an after-tax charge in the prior year of $2.7 million related to the writedown of assets of stores closed that year.
William T. Keon III, Pueblo president and chief executive officer, said, "During the second quarter, the company emphasized marketing initiatives, including the PuebloCard, and its cost reduction programs. Acceptance and use of the PuebloCard has been meeting expectations.
"The cost reduction programs initiated in April are part of a continuing process to enhance the efficiency of operations. The competitive nature of both the Puerto Rico and U. S. Virgin Island markets and weakness in the economies in those markets mandate that Pueblo continue its leadership as an innovator in bringing greater value to consumers."
Meanwhile, the company noted that it continues to suffer financial aftershocks from Hurricane George, which occurred in September 1998. Pueblo said it is continuing its efforts to have the Florida Supreme Court appoint an umpire to settle outstanding insurance claims from the storm.
