Home / Knowledge / News / Retail / 75,000 more stores may close across the US: UBS

75,000 more stores may close across the US: UBS

12
Apr '19
75,000 more stores may close across the US: UBS
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)

Fibre2Fashion News Desk – India


Must ReadView All

Pic: Shutterstock

Textiles | On 25th Jun 2021

Half of all cotton-growing regions face severe climate risks by 2040

Climate change could expose half of cotton-growing regions globally...

Pic: Beximco Ltd

Textiles | On 25th Jun 2021

BSEC offers letter of intent to BEXIMCO's Tk 3000-cr Islamic bonds

The Bangladesh Securities and Exchange Commission (BSEC) recently...

Pic: Shutterstock

Textiles | On 25th Jun 2021

Prime Content| Australian cotton production, exports to grow in coming season: TexPro

Australian cotton production and exports are expected to move up...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Money never disappears-it just finds new opportunities

Textile Industry, Head honchos

Textile Industry
Head honchos

Strongly believe in 'people first' policy.

Textile Industry, Head honchos

Textile Industry
Head honchos

There was a certain switch, but it was not 100% pandemic related

Alberto Gotti,

Alberto Gotti

Danitech was born from the will of a group of technicians to offer the...

Ujjval Saraf,

Ujjval Saraf

Founded by Jimmy Lai, Giordano International Ltd, a Hong Kong based...

Shivaani Jain,

Shivaani Jain

Established in 2015, Once Upon A Trunk is a one-stop-shop with almost...

Suresh Patel, Non Woven Federation of India

Suresh Patel
Non Woven Federation of India

The Non Woven Federation of India (NWFI), representing the regional...

Sven Ghyselinck, Devan Chemical

Sven Ghyselinck
Devan Chemical

Headquartered in Belgium and with offices in the United Kingdom, Portugal...

Shlomzion Chen, Seevix

Shlomzion Chen
Seevix

Seevix Material Sciences Ltd, which develops and manufactures synthetic...

Ramya Rao & Kavea R Chavali, Kalaneca

Ramya Rao & Kavea R Chavali
Kalaneca

<div>The journey of Kalaneca (kala-Art, Neca- Nikaah) formally began in...

Sarah Denise Cordery, Sarah Denise Studio

Sarah Denise Cordery
Sarah Denise Studio

Manchester, England-based Sarah Denise Studio provides relevant fashion...

Seema Agrawal, Artisan Saga

Seema Agrawal
Artisan Saga

Artisan Saga, founded by Kaushik Rajani and Seema Agrawal, is an online...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


June 2021

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search