How Distressed Retailers Stacked Up In Q1 2019
In a May report, analysts with Moody’s described an emerging Darwinian landscape for the industry, where the largest retailers with the healthiest balance sheets take advantage of everybody else’s debt woes, underinvestment and execution missteps. The analysts called it a “survival of the fittest” in retail, which could lead to further consolidation of the industry (meaning there could be more big retail liquidations to come). To some extent, the industry saw that play out in the first quarter of 2019. Walmart, Target, Amazon and Costco have reported relatively booming sales, growth online and sizable profits. But the quarter was tough for many that are trying to find their footing and pay off interest expenses. Many stores wrestled with negative profits, and traffic and sales declines. (And looming tariff increases can’t help the retailers already struggling to hold onto sales and margins.) Read more at Retail Dive.
