It’s raining bankruptcies in retail sector in the US
“Despite store closures amid the turmoil, the US remains significantly oversaturated with retail stores,”
Retail bankruptcies and defaults hit a peak last year, soaring past records set during the recession, and things could get even worse this year, according to credit-ratings agency S&P Global Ratings.
“We believe defaults in 2018 could match or exceed last year’s record level,” S&P Global Ratings analyst Robert Shulz wrote in a recent report that identified 20 retailers at risk of defaulting. The pace of retail liquidations could also pick up this year, he wrote.
“Despite store closures amid the turmoil, the US remains significantly oversaturated with retail stores,” he wrote. “Some retailers have made progress towards better aligning their physical footprint to the new reality of physical versus virtual sales, but there is still excess capacity.”
“We believe defaults in 2018 could match or exceed last year’s record level,” S&P Global Ratings analyst Robert Shulz wrote in a recent report that identified 20 retailers at risk of defaulting. The pace of retail liquidations could also pick up this year, he wrote.
“Despite store closures amid the turmoil, the US remains significantly oversaturated with retail stores,” he wrote. “Some retailers have made progress towards better aligning their physical footprint to the new reality of physical versus virtual sales, but there is still excess capacity.”