...Sector Outlook Negative: The non-food retail outlook remains negative as business models continue to face considerable challenges. Consumer habits are changing, exacerbating competition and creating growing uncertainty on returns from transformational investments. The food retail outlook in Europe remains stable with operations now stabilised in core markets. Low Growth: Fitch Ratings expects European retail sales to keep on experiencing low growth despite consolidating consumer confidence. Fitch believes the retail sector faces a structural shift of consumption towards services and recreational activities, leading to moderating replenishment needs across certain conventional retail categories such as apparel. Business Model Transformation Continues: Food retailers will complete their refocus on food, as consumers are turning to online shopping and specialist retailers for non-food purchases. Non-food retailers will face growing excess space as a consequence of booming online shopping....
