Monday, November 4, 2019

Price wars, investment costs dampen Moody's outlook on retail

Retail Dive
This year has been hard-fought for retail after it made gains in 2018. As the Moody's analysts tell it, "[R]etailers have been locked in a battle of mounting competition for market share — waging pricing wars while plowing more cash into necessary investments for future growth."

Beyond general price pressures, specific sectors have been struggling with their own troubles. Slowing housing markets are weighing on home improvement stores, apparel and specialty retailers have been hit by continued foot traffic declines and discounting, and drugstores are dealing with pressure on reimbursement rates. . . . more