European Retailers Facing Gloomy Prospects In 2020 - Moody's

(Alliance News) - Moody's Investors Service warned on Wednesday the outlook for European ...

Alliance News 11 December, 2019 | 4:23PM
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(Alliance News) - Moody's Investors Service warned on Wednesday the outlook for European retailers is negative for 2020.

Some 40% of the retailers it covers are expected to post lower profit in 2020 than either 2018 or 2019, or both, the ratings agency said. A year ago, Moody's had seen 20% of retailers posting lower profit for the year ahead.

The negative outlook is driven by a combination of shrinking in-store sales and margins, as well as declining profit and cash flow as companies adjust store portfolios. This will be compounded by weak economic growth prospects, Moody's said.

"Overall sales growth will remain anaemic as slowing but still strong online sales growth continues to cannibalise store-based sales in 2020," said Moody's David Beadle.

By George Collard; georgecollard@alliancenews.com

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