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Interior of the new Canadian Tire Express in Toronto on July 30, 2013.
Interior of the new Canadian Tire Express in Toronto on July 30, 2013.
(Gloria Nieto/The Globe and Mail)

SCOTT BARLOW

It's hard to be optimistic about domestic retail stocks

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Canadian retail stocks look expensive at a time when consumer spending is sluggish at best. Household debt has hit record levels of over 97 per cent of GDP, and even though current debt loads appear sustainable at low interest rates, at some point a Canadian credit deleveraging will create huge headwinds for the retail sector.