Private equity investors are snapping up retailers at the moment. Icelandic operator Baugur is in the process of acquiring House of Fraser (LSE: HOF), and Wyevale Garden Centres was recently bought out by West Coast Capital.
But why is this, when the outlook for retail spending is still uncertain? One answer may be that the buyers are taking a longer-term perspective than the stock market, and looking to the returns that will be made as spending inevitably increases over the years. Short-term concerns may result in a buying opportunity….
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