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Moody's sees Darwinian choice for smaller retailers

Published 07/24/2017, 02:41 PM
© Reuters.  Moody's sees Darwinian choice for smaller retailers
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  • Moody's warns that the intense battle between retail giants Wal-Mart (NYSE:WMT), Target and Best Buy for market share will continue to pressure smaller retailers with less financial flexibility.
  • The ratings agency isn't forgetting about Amazon (NASDAQ:AMZN). "Prime Day creates a significant conundrum for all retailers, especially for smaller specialty companies, which have to figure out whether or not they want to match Amazon's promotions," notes Moody's retail analyst Charlie O'Shea.
  • "In many cases, competitors going up against mega-retailers such as Walmart or Amazon face a Darwinian choice: fight a price battle with these retail leaders, which they will likely lose, or find someone weaker from whom they can grab market share," he adds.
  • ETFs: XLY, XRT, VCR, IBUY, RTH, RETL, FDIS, IYC, FXD, SCC, UCC, RCD, PMR, FTXD, CNDF, JHMC.
  • Now read: The S&P 500 Rally Will Continue On


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