Rite Aid Files for Bankruptcy as Retailers Face Tough Holiday Season Amid Shifting Consumer Spending

Pharmacy chain Rite Aid filed for bankruptcy, the latest in a string of retail bankruptcies this year.

Consumers are focusing spending on essential goods and cutting back on discretionary purchases. Retailers selling discretionary goods have been hit hardest.

The holiday season is pivotal for most retailers. There will likely be winners and losers based on consumer spending.

Additional retail bankruptcies are expected after the holidays as some chains struggle with debt and falling sales.

Retailers most at risk sell discretionary goods and have high debt levels and declining sales. Discount retailers are faring better.