SOURCE: Creditntell; F & D Reports

Creditntell; F & D Reports

July 12, 2011 10:05 ET

Retail Real Estate: Store Activity & Retailer Health Analysis Published by Creditntell/F&D Reports

GREAT NECK, NY--(Marketwire - Jul 12, 2011) - After an encouraging 2010, 2011 has gotten off to a slower start as consumers are faced with high unemployment, a 36% increase in oil prices and even a 3.1% increase in average cost of food in the last 12 months. Further, the housing market remains in a slump, leaving many home-owners with mortgage balances greater than the market value of their property. With inflation outpacing average wage increases, consumers are struggling and have cut back on discretionary spending, which is the lifeline of retail. With that said, not all is doom and gloom as the stock market has regained most of the losses incurred at the onset of the recession. However, since Creditntell's last report, a few more retailers have filed Chapter 11 including The Great Atlantic and Pacific Tea Company (A&P), Borders, Sbarro, Deb Shops, and Metropark. Despite these recent casualties, some retailers find themselves in a better position today after using the recession to cut costs and improve their operating efficiencies.

Commenting on the retail landscape, Dennis Cantalupo, COO at Creditntell, stated, "Although it was encouraging to see that certain retailers were able to trim the fat from their operations during the recession and strengthen its overall business, others are still struggling. Ultimately, while we feel that the bulk of the recession related store closings are behind us, we still need to keep an eye on certain retailers who are not demonstrating that they can execute a viable retail plan."

The Retail Real Estate: Store Activity & Retailer Health Analysis reveals that after a couple of years of industry wide caution, certain retailers have demonstrated an appetite for growth including hhgregg, Hobby Lobby, PetSmart, TJX Co's, Bed Bath & Beyond, Academy Sports, Sprouts, Five Below, Dick's Sporting Goods, Trader Joe's, Whole Foods, Aldi, Toys 'R' Us, and many others. Conversely, the report also discusses the retailers which have trimmed stores over the past 12 months including Borders, Pacific Sunwear, Trans World Entertainment, Rite Aid, Barnes & Noble, OfficeMax, Office Depot as well as others.

Finally, the comprehensive report identifies and discusses which retailers have below satisfactory credit ratings and, more importantly, why they are distressed. Negative sales trends alone will not result in a poor credit rating. Our analysts carefully consider balance sheet leverage, EBITDA, free cash flow, interest coverage, capital spending, short term liquidity outlook and other items before issuing a rating.

Please contact Dennis Cantalupo @ dennisc@creditntell.com if you would like a copy of the Retail Real Estate: Store Activity & Retailer Health Analysis.

About Creditntell and F&D Reports: F&D Reports (www.fdreports.com), launched in 1992, is a retail credit consulting service providing comprehensive financial analysis on public and private retailers & wholesalers primarily in the Grocery, Restaurant, Food Service, Drug Retail, and Mass Merchandisers segment. Creditntell (www.creditntell.com), launched in 1999, is a retail credit consulting service providing comprehensive financial analysis on public and private retailers across all retail sectors excluding the food segment.

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