80,000 more retail stores could close by 2025

Tens of thousands of retail stores might have to close over the next few years to keep up with the pace of shoppers shifting from brick-and-mortar retailers to online, according to a new report from UBS.

UBS analysts examined the supply of brick-and-mortar retail locations that would be necessary to align with the demand to shop in those physical locations. What they found paints a bleak picture for the future for retail stores.

“We [estimate] for each 100 bps increase in [e-commerce] penetration (currently 16%), an additional [9,000] stores would need to close,” the UBS analysts write. “To put this in perspective, it would be the equivalent of 7 Toys ‘R’ US chains.”...

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RSK: What they fail to mention is how many will open in the next 7 years.



- - Volume: 6 - WEEK: 17 Date: 4/24/2018 8:01:34 AM -