In this commentary we discuss the business risk weaknesses that led to Bed, Bath & Beyond Inc.’s (BB&B; not rated by DBRS Morningstar) downfall and how these weaknesses can be indicators for which retailers are at increased risk of experiencing a similar fate. Key Business Risk Weaknesses To Watch: (1) Lack of omnichannel capabilities; (2) Unmitigated category concentration; (3) Lack of long-term customer loyalty; and (4) Lack of continuous reinvesting in the business. “BB&B’s demise was prim...
DBRS Morningstar released a commentary titled “Global 2023 Retail Outlook: Rough Times Ahead for Discretionary Retail.” Our negative outlook for retailers globally in 2023 reflects our view that the credit risk profiles of such companies in our ratings portfolio will be pressured, albeit to varying degrees, depending on where they are on the discretionary to nondiscretionary spectrum, as a result of shrinking consumer wallets, persistent levels of inflation, and a challenging macroeconomic backd...
On April 13, 2021, DBRS Limited (DBRS Morningstar) confirmed Canadian Tire Corporation, Limited's (CTC or the Company) Issuer Rating and Medium-Term Notes rating at BBB with Stable trends. While CTC's operating performance was materially stronger than expected during the pandemic year of 2020, DBRS Morningstar forecasts that operating results and credit metrics should moderate as the distribution of Coronavirus Disease (COVID-19) vaccines gains momentum, pandemic-related containment measures are...
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