O’Shea and his team pointed out that there are several factors boding well for retail, including a healthy economy and a tax bill that gave a boost to many retailer’s bottom lines. “[W]e believe conditions for retail are improving,” the analysts wrote.
But the turnaround isn’t equal. Retailers saddled with debt remain vulnerable. The Moody’s analysts noted that “as the larger, better capitalized retailers continue to grow and prosper, the smaller, highly leveraged retailers will struggle harder to compete and survive.”
