Long before the holiday sales figures started trickling out, reports suggested a number of well-known retailers could be in play. Barnes & Noble and Home Depot were the most widely discussed buyout candidates last month. However, the reports of a poor holiday season for most major retailers could make even more retailers the target of buyouts. So far, the only retailers to have a Merry Christmas were Best Buy, Circuit City, Target, Wal-Mart and warehouse club chains Costco and Sam's Club. The two electronics retailers were buoyed by the popularity of flat-panel HDTVs and new video-game systems. Discount retailers Target and Wal-Mart and the warehouse clubs were helped by the weakening housing market, which sent most consumers looking for bargain deals. However, don't expect these five — Sam's is a unit of Wal-Mart — to go on acquisition sprees. Instead, buyout firms will likely go after Zales, BJ's Wholesale Club Inc., Gap Inc., and AnnTaylor Stores Corp., which all cut their profit outlooks on Thursday. —Matthew Wurtzel
See story about poor retail sales from The Providence Journal
See story about electronics retailers from MarketWatch
Continue reading below
