The North American retail sector showed continued momentum with a fourth consecutive quarter-over-quarter increase in TEV/EBITDA. Valuations for Canadian retailers remained strong, ending the year at an average TEV/EBITDA of 9.4x, representing a five-year high.
Looking ahead, Target has announced plans to open an additional nine stores across Canada in 2014, bringing its total Canadian store count to 133 by the end of 2014. South of the border, J.C. Penney and Macy’s both announced plans to close multiple underperforming stores in 2014. Clearly 2014 is shaping up to be another interesting year in the retail sector.
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