Moody's said "off-price retailers.....>

US CORPORATES: Moody's said "off-price retailers will remain among the top

performers in the US retail industry over the next 12-18 months." But its new

report said "department stores, on the other hand, will continue to struggle as

they seek to level the playing field with both off-price and online vendors."

- "Off-price retailers continue to outperform other sectors of the US retail

industry largely because they offer the kind of lower-cost, higher-value

products and shopping experience many consumers are looking for," said Moody's

analyst Christina Boni. "Off-price stores are far

outstripping department stores, which in contrast are still struggling with

outmoded formats and supply chains that can't keep pace with customer demand."

- Moody's expects operating income in the US off-price sector to grow 6.9% in

2017 and 5.4% in 2018, Boni said. "Department stores continue to revamp as

off-price sticks to a winning game plan." Meanwhile, department stores will see

operating income decline 9.3% this year and 2.7% in 2018, Moody's said.