Outlook on China's department stores remains negative – S&P

HONG KONG -  Ratings agencyStandard & Poor's  says the outlook on China’s department stores sector remains negative because of deteriorating liquidity and weak operating performance amid tepid consumer demand - and the continued aggressive expansion appetite of some department store companies.

"Chinese department stores seem to have been swimming against the current in recent times," says S&P credit analyst Shalynn Teo. "Faced with sluggish sales growth and declining profitability, operators are struggling to survive in a highly competitive market."