Report
Aarti Magan ...
  • Moritz Steinbauer
  • Reid Usher
  • Vikas Munjal

Global 2023 Food Retailer Outlook: Grocers Largely Immune to Macroeconomic Challenges

DBRS Morningstar released a commentary titled “Global 2023 Food Retailer Outlook: Grocers Largely Immune to Macroeconomic Challenges.” Our neutral 2023 outlook for the global food retail sector reflects our view that the credit risk profiles of food retailers in our portfolio will continue to remain supportive of their current ratings. While persistent levels of inflation against a challenging macroeconomic backdrop caused by decreasing consumer spending could pressure 2023 operating results, we believe food retailers in our portfolio are well positioned to navigate this environment.

“We do not expect to take any rating actions as a result of the broader sector trends in 2023, and we believe any rating actions will be driven by the evolution of the credit risk profiles of individual issuers in the context of an intensely competitive operating environment,” notes Moritz Steinbauer, Vice President – Team Lead of Diversified Industries.
Underlyings
Costco Wholesale Corporation

Costco Wholesale and its subsidiaries are principally engaged in the operation of membership warehouses based on the concept of providing its members low prices on a selection of nationally branded and private-label products. The company's merchandise are: food and sundries, which include dry foods, packaged foods, and groceries, snack foods, candy, alcoholic and nonalcoholic beverages, and cleaning supplies; hardlines, which include appliances, electronics, health and beauty aids, hardware, and garden and patio; fresh food, which include meat, produce, deli, and bakery; softlines, which include apparel and small appliances; and ancillary, which include gas stations and pharmacy businesses.

Loblaw Companies Limited

LOBLAW COMPANIES Pfd.

Walmart Inc.

Walmart is engaged in global operations of retail, wholesale and other units, as well as eCommerce, located throughout the U.S., Africa, Argentina, Canada, Central America, Chile, China, India, Japan, Mexico and the U.K. The company's operations are conducted in three reportable segments: Walmart U.S., which is a mass merchandiser of consumer products, operating under the Walmart and Walmart Neighborhood Market brands, as well as walmart.com, jet.com and other eCommerce brands; Walmart International, which includes various formats divided into retail, wholesale and other categories; and Sam's Club, which is a membership-only warehouse club that also operates samsclub.com.

Provider
DBRS Morningstar
DBRS Morningstar

DBRS Morningstar is a global credit ratings business with 700 employees in eight offices globally. DBRS and Morningstar Credit Ratings are committed to empowering investor success, serving the market through leading-edge technology and raising the bar for the industry.

Together, we are the world’s fourth largest credit ratings agency and a market leader in Canada, the U.S. and Europe in multiple asset classes. We rate more than 2,600 issuers and 54,000 securities worldwide and are driven to bring more clarity, diversity and responsiveness to the ratings process. Our approach and size provide the agility to respond to customers’ needs, while being large enough to provide the necessary expertise and resources. For more details visit us at dbrs.com.

Analysts
Aarti Magan

Moritz Steinbauer

Reid Usher

Vikas Munjal

Other Reports on these Companies
Other Reports from DBRS Morningstar

ResearchPool Subscriptions

Get the most out of your insights

Get in touch