European Retail Industry Distress Index Hits a New High Since the Financial Crisis! Analysts: Deterioration speed exceeds expectations.

The latest European corporate operation assessment report released by Wega Law Firm shows that the retail industry has surpassed the industrial and real estate sectors to become the most challenging industry in the current European business environment. This special analysis, based on the Wega European Distress Index, shows that retail and consumer goods companies are facing a triple squeeze of continuous contraction in non-essential consumer spending, narrowing profit margins, and tightening credit conditions. The overall distress index of the industry has climbed to the highest level since the 2009 global financial crisis. It is worth noting that the distress in the retail industry has deteriorated significantly at an accelerated pace since the previous assessment was published in April, jumping two spots in industry rankings and showing an accelerating deterioration trend. The report specifically points out that in the past three months, the industry distress has seen a "cliff-like surge", with the uncertainty of tariff policies continuing to disrupt supply chain systems and directly impacting retailers relying on the US export market. This distress is not an isolated phenomenon: in May, the overall business pressure of European companies reached a near-nine-month peak, with up to seven industries deteriorating compared to the previous quarter among the ten major industry categories monitored. The German market continues to lead the "distress list" with a significant disadvantage, highlighting the structural challenges facing the European economic engine. The research team defines the current corporate distress as a triple overlap of uncertainty in financial asset values, market volatility, and risk perception. Specific characteristics include: intensifying corporate cash flow pressure, continuous decline in profitability, rising bankruptcy risk index, widespread asset devaluation, and systemic decline in return on investment. The lead analyst of the report emphasized, "The rapidly deteriorating distress in the retail industry is like a barometer, clearly reflecting that the survival environment for European companies is deteriorating at a speed far exceeding expectations at the beginning of the year." At the macro level, a combination of factors such as geopolitic...