Pharmacy chain Rite Aid (RAD) filed for Chapter 11 bankruptcy. BDO National Leader of Restructuring and Turnaround Services Practice David Berliner says that for some retailers, it's really about the health of the consumer, stating "we've been seeing consumers focusing on on essential goods and cutting back on discretionary goods and many of the bankruptcies we've seen this year have been for retailers that sold primarily discretionary goods." Berliner tells Yahoo Finance Live that the holiday season is "pivotal" for most retailers and that he thinks "there are going to be winners and losers this holiday season. As consumers tighten up some of the purchases they might be making... some retailers will survive and do well and other won't and that will dictate, I think, some of the retailers that may end up filing for bankruptcy... probably after the holiday season."

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Video Transcript

JULIE HYMAN: Rite Aid has filed for bankruptcy following years of falling sales, a huge debt load, and looming opioid lawsuits. It's the latest in some of America's best known brands declaring bankruptcy this year. They include the likes of Bed Bath & Beyond, Pyrex, and Party City.

Let's bring in David Berliner. He is National leader of restructuring and turnaround services practice at BDO. So obviously, you're well-aware of some of the factors going on in the retail industry right now that have led to some of these bankruptcies and could maybe lead to others. What are you watching sort of most closely here? And particularly given your historical experience with bankruptcies, what is this environment indicating to you about what could happen next?

DAVID BERLINER: Well, a lot of it has been geared for these retail bankruptcies to how the consumer is doing. And we have a bunch of factors now with high inflation, interest rates being up, you know, that are making it somewhat difficult for consumers to purchase. So we've been seeing consumers focusing on essential goods and cutting back on discretionary goods. And many of the bankruptcies we've seen this year have been for retailers that sold primarily discretionary goods.

JOSH LIPTON: And so is that-- given those sort of headwinds for consumers, is that how retailers are responding, David? How are they reacting? Are you seeing them-- is it more restructurings, more bankruptcies? How are they responding?

DAVID BERLINER: Well, I think what retailers are trying to do are drum up sales. So a lot of it has to do with, you know, discounting to try to bring consumers in. Amazon just had its Prime sale. And other retailers matched that last week. And I think we're seeing with the holiday season coming, a lot of retailers may need to discount in order to bring people into to purchase and buy the goods that they need this holiday season.