S&P Global Market Intelligence posts a list of the public retailers seen with the highest risk of a credit default within a year.
Topping the S&P list is Sears Holdings (SHLD -3.5%) with a 23.84% probability of default. DGSE Companies (DGSE -1.2%), Appliance Recycling Centers of America (ARCI -1.1%), Bon-Ton Stores (BONT +1.7%) and Bebe Stores (BEBE -0.8%) are all assigned +10% odds of default. Destination XL Group (DXLG +0.7%), Perfumania Holdings (PERF), Fenix Parts (FENX -1.7%), Tailored Brands (TLRD +1.2%) and Sears Hometown and Outlet Stores (SHOS -1.4%) round out the top ten, with default probabilities ranging between 6.1% and 8.1%.
"The convenience of online shopping, and the downward pressure it has put on pricing, has radically altered consumer behavior. Most shoppers now browse for value online, and the younger cohort of the prized millennial demographic, some of whom may never have developed a penchant for long afternoons at the mall, clearly prefers that channel," writes S&P Global risk assessor Jim Elder in the report.