Lucky Stores, whose Gemco and Southern California...

Lucky Stores, whose Gemco and Southern California food operations continue to suffer from high costs associated with a fourth-quarter strike by meat cutters, reported an 11.7% decline in earnings for the first period ended May 4. Net income dropped to $21.2 million from $24 million. Revenue was flat at $2.31 billion. President John M. Lillie said food store earnings moved up sharply because of improvements in gross margins. However, heavy promotional activity designed to boost sluggish sales at Gemco stores in April contributed to a loss for that division.