There Hasn’t Been This Many Distressed Retailers Since the Great Recession
Stephen Selbst was quoted in TheStreet.com discussing the recent increase in distressed retailers, which has tripled since the Great Recession. Teen retailers have especially struggled due to the fact that the industry is extremely competitive, highly cyclical and very trend-driven. Selbst cited additional causes of weakness in the retail sector including stagnant consumer incomes, changing consumption patterns and the growth of e-commerce. "There aren't more dollars to go around," Selbst said, but noted that the upper strata of the American consumer population is not being squeezed. While retailers in the past have blamed sluggish results on a bad holiday season or unfavorable weather, he believes they are missing the bigger picture. "Consumption patterns are changing," Selbst said.