3 January 2018
3 January 2018
HY Corporate Credit
HY Multi Sector.Media, Cable & Satellite
Consumers continue to seel. out bargains as Department Store SSS lag
Discount and club stores continue to drive same store dollar volume growth,
albeit at a moderating pace. Department, women's accessory/specialty and
men's & women's clothing stores remain relative underperformers.
[Figure 14 Discount/Club Store SSS Growth
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Store closures accelerated in 2017 as retailers sought to right size penetration
Store closures more than tripled YoY in 2017 as retailers sought to right size
their store fleets and bankruptcy filings accelerated.
[Figure 16: Store closures accelerated in 2017
4,000 Figure 17: Closures driven by bankruptcy proceedings
Closing Opening
Radioshack (1.000) 650 Dollar Tree
2.000
2,258 3.470 Payless (700) 400 Arch
0 tas21 (400) 111 TJX
Ascena (400) 100 Five Below
(2.000) Sears/lCmart (358) 100 Ulte
Gymobree (330) 100 Lidl
(4.000) The floated (260) 100 Ross Stores
(6.000) •Close Open hhgrogg (2201 90 Gap
GemeStop (190) 89 Wellman
(8.000) Bebe Stores (180) 70 Sephora
2016 2017 Wet Seel (171) 60 H&M
Crocs (160) 60 Hobby Lobby
JCPenney (138) 48 H&M
803G (120) 43 Dick's Sporting Goods
American Apparel 010) 32 Target
Gordmens (101) 24 Costco
Michael Kora (100) 20 Bonobos
Macy's (100) 19 Macy's Backstage
The Children's Place (100) 17 Nordstrom
Astrosoles (741 10 Forayer 21
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Sean du/sof* Bs{ Rev Glob/ Raw/ a 44.ch-ciore
c pi Apparol 411411(141 negative in May and decelerated through November
CPI apparel deflated starting in May and decelerated considerably through
November. Given consumers' increased ability to price compare, we will
continue to pay particular attention to apparel inflation as digital penetration
increases, arid retailers are increasingly forced to compete on price.
Deutsche Bank Securities Inc. Page 165
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