The deterioration of the middle class in America is decimating department stores.
The retailers were hammered despite all four showing signs of modest improvement following years of steep declines in traffic and sales.
Investors’ response indicates there’s little faith left in the long-term value of retailers that target mid-tier customers.
Investors are instead putting more faith in companies like Walmart, Amazon, TJ Maxx, and dollar stores, which target customers on opposite ends of the income spectrum.
Moody’s Investors Service
The middle class used to be a…