More than 50,000 US retail stores are expected to close in the next 5 years as e-commerce and rising costs push smaller shops out of business
A team headed up by Equity Research Analyst Michael Lasser estimates that more than 50,000 stores will likely close as a result of rising operating costs and a higher proportion of ecommerce sales for businesses. and consumer electronics making up nearly half of the total projected closures. Home improvement and auto parts stores, meanwhile, are expected to emerge relatively unscathed.
That many closures would represent a 5% reduction from the current count of about 940,000 stores across the US, according to UBS. It would also open up potentially $285 billion worth of consumer spending for the surviving stores to compete for, analysts said. Big box retailers like Walmart, Costco, and Target are poised to win big under this scenario, while smaller chains and independent retailers will likely continue their years-long decline in store counts. The report says that over the past decade, large employers have added 17,000 stores, while smaller ones have shuttered 40,000 locations.
According to UBS, e-commerce sales are projected to rise to 26% of total retail sales by 2028, up from the current estimated level of 20%. UBS estimates nearly one in four digital transactions will likely be fulfilled by either ship-from-store or pick-up options. In the coming years, if retail sales growth falls short of 4% per year — the long-term historical average — UBS said the number of closures could reach to 70,000 or more. Conversely, stronger sales growth would keep more stores open, the analysts said.Subscribe to push notifications
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
A cart girl who makes $500 in tips a day shares how to be successfulI'm a cart girl on a Las Vegas golf course who makes $500 in tips a day. You don't need experience to be successful at this job — here's how I do it.
Read more »
Inside the Citadel and Blackstone 5-hour psychological assessmentInside the 5-hour psychological interview that can make or break your career at Citadel, Blackstone, and other finance titans
Read more »
Why Hims won't prescribe GLP-1s for weight loss right nowInsider tells the global tech, finance, markets, media, healthcare, and strategy stories you want to know.
Read more »
Russia posted a $29B Q1 budget deficit amid falling energy revenuesRussia's energy revenues may not be able to foot its military bills for long — the country just posted a $29 billion deficit in the first quarter
Read more »
Uber Eats driver's tips strategy 'like gambling,' but 'very exciting'This Uber Eats driver only accepts high-value orders in the hope of getting big tips. He says it's 'like gambling,' but 'very exciting.'
Read more »
Student says he got a top grade for essay written with ChatGPT: reportInsider tells the global tech, finance, markets, media, healthcare, and strategy stories you want to know.
Read more »