Amid the thousands of store closures of 2019, the retail industry as a whole has continued growing its sales. Even after a sluggish November, with its all-important shopping holidays, analysts are largely positive on the industry’s prospects going into the new year. Nevertheless, there are major pockets of distress and decline, particularly among retailers tied to lower-tier shopping malls.
Moody’s analysts expect profit growth in the industry to be “broad-based,” with more than half of the industry’s 13 sectors (as defined by Moody’s) to have operating income growth of more than 4%. But there are disparities among retail’s sectors. Dollar stores, off-pricers, e-tailers, supermarkets and specialty retailers will outperform the industry as a whole, according to Moody’s.
