Retailers' Shift to Private Ownership Amid Trade War Turmoil

Amid market instability and unpredictable tariffs by the U.S., retailers like Skechers are opting for take-private deals. This move provides shielding from market volatility, as seen in Skechers' $9.4 billion sale to 3G Capital. Other retailers are contemplating similar paths to manage business privately.

In the midst of the U.S.-China trade war, retailers affected by erratic tariffs are increasingly looking to go private. This shift aims to escape market volatility and achieve more stable valuations and operations.

Skechers, which suffered significant losses due to tariff fluctuations, announced a substantial $9.4 billion take-private deal with 3G Capital. This decision aligns with the Greenberg family's strategy to navigate the volatile market environment privately.

Similar tactics are being considered by other retailers with majority family ownership or controlled by a sole investor. As the trade war uncertainties persist, experts say more deals of this kind could soon come to fruition.

(With inputs from agencies.)