OREANDA-NEWS. Fitch Ratings sees the challenges faced by Chinese department stores as structural rather than cyclical and expects weakness in same-store-sales (SSS) growth to persist for at least another 12-18 months, according to a new report on the 2016 outlook for the Chinese Department Store sector.

Fitch's Rating Outlooks for companies in the sector are negative, primarily due to declining SSS, which have put margins under pressure. Fitch expects department stores to operate with higher leverage over the next one to two years.