HA! Moody’s claims the retail industry is STABLE after THOUSANDS of stores have closed in the past year
The delusional analysts at Moody’s have issued a report stating that “retail” is stable despite thousands of stores closing over the last year. These Wall Street vampires need to revisit their findings from a few months back where they essentially warned us that 19 major retailers may be headed for bankruptcy leaving almost 13,216 stores EMPTY!
The wider outlook for the retail industry is fairly stable, despite weakness in certain retail sectors, including specialty retailers, discounters and warehouse clubs, department stores, drugstores and office supply stores, according to research from Moody’s Investors Service emailed to Retail Dive on Tuesday.
Online growth, which Moody’s pegs at 8% to 9% of total U.S. retail sales, will continue to outpace overall retail growth, aiding retailers that do well online, according to the report.
Sub-sectors that are boosting the overall outlook include: home improvement, dollar stores, auto parts stores and off-price stores.
Once again, department stores got the brunt of Moody’s analysis. In addition to a 1% decline in sales, Moody’s forecasts a 7% to 8% decrease in operating profits for those retailers this year, not even counting struggling Sears. Department stores have been hard hit by shifts in shopping habits, slowing mall traffic and competition from e-commerce and off-price retailers, according to the report.
The faint growth remains the consequence of reticent American consumers, according to the report. “Consumer spending remains subdued, with gains in household wealth due to improved housing and equity markets a positive, although lower-income households are benefiting less than those with greater discretionary income,” Mickey Chadha, Moody’s vice president and senior…CONTINUE READING AT RETAILDIVE