The rising penetration of e-commerce may contribute to the closure of 50,000 U.S. stores by 2027.
Other
factors linked to the expected closures include reduced credit
availability and slower consumer spending, according to a UBS report
published on Tuesday.
- The forecast is
based on the assumption that the share of online orders fulfilled by
retail stores will expand from 15% now to 25% by 2027.
- The
report estimates that if e-commerce penetration hits 28-29% and retail
sales growth stays at 2.5%, 130,000 physical stores may shut down.
- Retailers have already shuttered more stores than they opened in 2022.
- The analysts noted that smaller retail chains are at the highest risk of closing.
