The outlook is bleak for the grocery sector that was supposed to be rebounding this year, Bloomberg News reported. Regional chains are filing for bankruptcy, while European-born discounters are expanding, forcing competitors to keep their own prices low. And Kroger Co. and Walmart Inc., the two largest grocers in the U.S., are investing in technology and expanding delivery as they try to fend off an incursion by Amazon.com Inc. A historic bout of food deflation — which fueled a price war in the past two years — has ended, but efforts to sell more groceries online are gobbling up investment dollars. Southeastern Grocers, owner of the Winn-Dixie and Bi-Lo supermarket chains, filed for bankruptcy last week. Along with Southeastern Grocers, Tops Friendly Markets also filed for bankruptcy in the past month. Based in Williamsville, New York, Tops has about 170 stores. As the pressure mounts, other regional chains could go under, according to Roger Davidson, an industry consultant.
