Over 45K retail stores may close in next 5 years: UBS


Over 45K retail stores may close in next 5 years: UBS
E-commerce penetration is expected to rise, helped in part by third-party players like Temu and Shein, according to a new report. Dive Brief: About 45,000 retail stores may close in the coming years as retail’s physical footprint increasingly shifts to serve as fulfillment and distribution centers, UBS analysts led by Michael Lasser said in an April 22 report. That forecast is based on the premise that online retail penetration rises to 26% from 21% with retail sales growth of 4% by 2028. Banks’ reluctance to lend, higher operational costs and consumers’ sustained inclination to spend on services instead of goods also drive store closing forecasts. The U.S. still has too much retail square footage, the UBS analysts said, as third-party players like Temu and Shein are positioned to drive further e-commerce penetration without the overhead of managing and maintaining a physical footprint. The analysts said apparel and accessories, consumer electronics and home furnishing retailers need to shrink their footprints the most... ...more RSK: Not pretty unless you are a larger discount retailer...goodbye Honey Mustard Furniture.
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About 45,000 retail stores may close in the coming years as retail’s physical footprint increasingly shifts to serve as fulfillment and distribution centers, UBS analysts led by Michael Lasser said in an April 22 report. That forecast is based on the premise that online retail penetration rises to 26% from 21% with retail sales growth of 4% by 2028.
Banks’ reluctance to lend, higher operational costs and consumers’ sustained inclination to spend on services instead of goods also drive store closing forecasts.
The U.S. still has too much retail square footage, the UBS analysts said, as third-party players like Temu and Shein are positioned to drive further e-commerce penetration without the overhead of managing and maintaining a physical footprint. The analysts said apparel and accessories, consumer electronics and home furnishing retailers need to shrink their footprints the most...