UBS Predicts More Home Store Closings

摘要

As e-commerce expands its share of wallet, thousands more retail locations are likely to shutter, according to a report from UBS. The financial services firm estimates up to 75,000 total stores in the US will become unnecessary if e-commerce penetration reaches 25% by 2026. It is currently 16%. According to several news reports on the study, UBS predicts apparel stores will take the biggest hit, closing an estimated 21,000 doors. Also topping the list are consumer electronics stores (10,000 units), home furnishings stores (8,000) and home improvement stores (1,000). UBS noted that stores improved productivity in 2018, but the firm doesn't believe they can sustain the gains in 2019 as the boost from fiscal stimulus wanes. "This will likely lead to an acceleration in physical store closures in the coming year," it said. Over the last 12 months, retailers have shuttered about 1,000 net stores, compared to about 5,000 net closures over the previous 12 months, Retail Dive reported. Among Top 50 home textiles retailers, the heaviest blows fell in 2017 and 2018 as Macy's, Kohl's and JCPenney took an axe to their doors. The middle market will see additional paring this year with the closing of 27 JCPenney stores, eight Macy's stores, six Target stores and four Kohl's stores. Bed Bath & Beyond plans to shutter 40 stores, but will open 15. Z Gallerie, now in bankruptcy, is closing 17 of its 76 stores.