Industry Report Card: Trading Down Weighs On European Retailers May 09
Standard & Poors, May 2009
Abstract
The decline in consumer confidence continues to hamper the European retail industry and has triggered a series of negative rating actions since the beginning of the year. Although 2008 sales figures were satisfactory for many, 2009 looks likely to be tougher and profitability is falling, which Standard & Poor's Ratings Services believes has put further stress on those issuers whose financial flexibility was already tight. Nevertheless, we believe that European food retail has remained resilient, as most rated players and specifically the food retailers reported solid earnings for 2008 and announced that sales in 2009 would still be growing, albeit at a lower pace. In our view, however, profitability is being hit as customers are trading down. Even though some...
Companies mentioned in this report are:
- Marks & Spencer PLC
- J Sainsbury PLC
- Kingfisher PLC
- Casino Guichard - Perrachon & Cie S.A.
- Koninklijke Ahold N.V.
- Migros Genossenschaftsbund
- Carrefour S.A.
- Tesco PLC
- Metro AG
- Delhaize Group S.A.
- Groupe Auchan S.A.
- Next PLC
- Hornbach-Baumarkt-AG
- Open Joint Stock Co. Trade House Kopeyka
- X5 Retail Group N.V.
- Edcon Holdings (Proprietary) Ltd.
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues.
- Marks & Spencer PLC
- J Sainsbury PLC
- Kingfisher PLC
- Casino Guichard - Perrachon & Cie S.A.
- Koninklijke Ahold N.V.
- Migros Genossenschaftsbund
- Carrefour S.A.
- Tesco PLC
- Metro AG
- Delhaize Group S.A.
- Groupe Auchan S.A.
- Next PLC
- Hornbach-Baumarkt-AG
- Open Joint Stock Co. Trade House Kopeyka
- X5 Retail Group N.V.
- Edcon Holdings (Proprietary) Ltd.
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