S&P: 2018 holiday retail sales were “underwhelming.”

Standard & Poors (S&P) issued a report saying that 2019 will be yet another year of elevated retail defaults, above the levels that were seen during the great recession of a decade ago. It noted that a significant number of retailers struggle to operate successfully in the current competitive landscape.

While the United States’ economy seems to be in reasonably good shape, S&P predicts that a difficult year is ahead for apparel retailers, department stores, and specialty merchandise retailers. It quoted online competition and changing consumer behavior as the chief reasons.

Many retailers are expected to feel the increased pressure of their debt burden that consequently affects their cash flow. With the publication by the US government of year-end statistics, S&P called the year-end retail performance in the US “underwhelming” as it is becoming clear that 2018 holiday retail sales were quite disappointing.