(Reuters) – U.S. grocer Albertsons Cos Inc stated Tuesday that the Omicron coronavirus variant has put a halt to the recovery of its supply chains and it expects the problems to continue for a longer time.

Analysts and Corporate America previously predicted that supply-chain problems would ease by the end of the year. However, Omicron-related issues such as labor shortages could delay a complete recovery.

We expect that supply pressures will likely persist for longer in 2022 before slowly easing off. Deutsche Bank (DE:), Analysts sent a note to the editor on Tuesday.

Albertsons shares fell 8% after it said that the company was experiencing cost inflation in its supply base. This includes ingredients and transportation.

Albertsons (which also holds Safeway, Vons, and Jewel-Osco chains) lowered its fiscal 2021 capital expenditures by $100m at the midpoint, to $1.8 billion to $1.9 billion, in part due to “supply-related constraints.”

Vivek Sankaran, Chief Executive Officer of Vivek Enterprises stated that there are “more supply challenges” and that he expects more in the coming weeks.

Sankaran stated that Albertsons was also faced with the problem of several product types being out-of-stock for some time.

After posting higher-than-expected earnings and sales for its third quarter, the company raised its fiscal 2021 profit forecast. The company benefited from the administration of COVID-19 vaccinations in its stores, and strong grocery demand.