Executive Summary

• This week’s note “From the Desk of Deborah Weinswig” discusses the estimated $2.5 billion in revenue that will be freed up for other retailers to grab once JCPenney, Macy’s and Sears complete their recently announced store closures.
• According to Moody’s Investors Service, the number of US retailers ranked at the most-distressed level of the credit-rating spectrum has more than tripled since the Global Financial Crisis of 2008–2009 and is heading toward record levels in the next five years.
• German discount grocer Lidl has unveiled a new concept store called Loft in Calais, France, where it already has two stores. Loft features wider aisles and more than 1,600 products. The store’s heat-reduction and waste-recycling processes make it environmentally friendly.
• To develop 5G technology, China’s Huawei deploys an R&D staff of 80,000, challenging Europe’s dominance. That could give Huawei a sizable edge at a time when all suppliers have set their sights on 5G, which promises to be a wellspring of revenue by enabling smoother and faster interaction between connected objects.