Retailers Will Need To Use Technology To Develop Competitive Advantages: Moody's
Companies operating in the European retail sector will need to use technology to develop distinct competitive advantages in the long term, if they want to improve their credit quality, a new report by Moody's has found.
However, initial investment in innovation is likely to depress free cash flow, which is already low in the retail sector, the ratings agency said.
"Innovation will be key to reversing declining market share among European retailers in a deteriorating economic environment. European sales of rated and unrated retailers should grow by about 3% a year in 2018-2020 to about €3,300 billion, but traditional companies will continue to lose ground," said Moody's Senior Analyst Vincent Gusdorf.
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