Credit-Rating agency notes deteriorating environment in foodstuff and non-foodstuff chain retailing due to decreased liquidity of companies operating in the sector.
The major peculiarity of chain retailers is their extensive development fueled by borrowed funds, which will result in decreased liquidity of the retailing companies due to dropped growth rates of retailing under limited access to funding. The companies engaged with non-foodstuff retailing will be also affected by banks' cutbacks in retail lending.
The chain retailers will seek refinancing of their current obligations, and will compensate lack of resources by revision their policies towards suppliers. The retailers' efforts will also be aimed at improve in efficiency by reducing their expenses, closing detrimental sectors, and by selling secondary assets. The limited access to funding, and declined business’s profitability may prompt changes in ownership structures of retailers.
