Friday, June 28, 2019

How Pier 1, Rite Aid and other distressed retailers stacked up in Q1

Retail Dive
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. . . . more