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75,000 more stores may close across the US: UBS
12 Apr '19
2 min read
Clothing retailers, consumer electronics companies and home furnishing businesses may need to close around 75,000 more stores across the United States as e-commerce sales proliferate, according to investment firm UBS. Store rationalisation needs to accelerate meaningfully as online penetration continues to rise, UBS said in a recent note to clients.
Assuming the share of online sales in the total US retail sales grows from 16 per cent now to 25 per cent by 2026, roughly 75,000 more retail doors, excluding restaurants, need to close, UBS analysts Jay Sole and Michael Lasser said.
That means for every 1 per cent rise in online penetration, 8,000-8,500 stores need to close. A lot of that growth is being fueled by Amazon, which is expected to account for about half of the US e-commerce market, according to US media reports.
UBS estimates about 21,000 clothing stores, 10,000 consumer electronics stores, 8,000 home furnishing stores and 1,000 home improvement stores should close.
About 7,000 grocery stores could close if online grocery penetration rises to 10 per cent by 2026 from 2 per cent now, it added.
More than 5,000 store closures have been announced by retailers this year, according to a tracker by Coresight Research. The companies include Gap, Victoria’s Secret, Charlotte Russe and Gymboree. (DS)
Assuming the share of online sales in the total US retail sales grows from 16 per cent now to 25 per cent by 2026, roughly 75,000 more retail doors, excluding restaurants, need to close, UBS analysts Jay Sole and Michael Lasser said.
That means for every 1 per cent rise in online penetration, 8,000-8,500 stores need to close. A lot of that growth is being fueled by Amazon, which is expected to account for about half of the US e-commerce market, according to US media reports.
UBS estimates about 21,000 clothing stores, 10,000 consumer electronics stores, 8,000 home furnishing stores and 1,000 home improvement stores should close.
About 7,000 grocery stores could close if online grocery penetration rises to 10 per cent by 2026 from 2 per cent now, it added.
More than 5,000 store closures have been announced by retailers this year, according to a tracker by Coresight Research. The companies include Gap, Victoria’s Secret, Charlotte Russe and Gymboree. (DS)
Fibre2Fashion News Desk – India
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