Retail apocalypse now: Analysts say 75,000 more US stores could be doomed

[Yo_Mama_Been_Loggin]

Widespread closures have roiled the retail industry, but many more stores are likely to shut down in coming years to keep up with a shift to online shopping, according to a report by investment firm UBS.

An estimated 75,000 stores that sell clothing, electronics and furniture will close by 2026, when online shopping is expected to make up 25 percent of retail sales, according to UBS. Roughly 16 percent of overall sales are made online.

Analysts said the closures would affect a broad variety of retailers, affecting an estimated 21,000 apparel stores, 10,000 consumer electronics stores and 8,000 home furnishing stores.

Already this year, retailers have announced plans to close thousands of stores as they keep up with changing consumer habits. Payless ShoeSource, which filed for Chapter 11 bankruptcy protection in February, is closing all 2,100 of its U.S. stores, while Gymboree is shuttering its 800 locations. Sears, which has closed 1,300 Kmart and Sears stores since 2013, is scrapping an additional 80 locations. A number of other retailers, including Gap, have hinted that store closures are on the horizon.

https://www.msn.com/en-us/money/companies/retail-apocalypse-now-analysts-say-75000-more-us-stores-could-be-doomed/ar-BBVNB0I?li=BBnbfcN

[Cary]

1. Tear down the parking lot and put up a paradise

[ZZenith]

8. !!!

[brooklynite]

2. I suspect that when supermarkets came along...

...someone lamented the eventual loss of stand-alone greengrocers, fishmongers, butcher shops and bakeries.

[maxsolomon]

5. I lament those losses today.

That's how it still works in stuffy old Europe, and it's a very nice way to live.

[dixiegrrrrl]

3. Brave new world out there now.

Sears would still have a chance if it had been operated properly instead of being a vulture fund's piggybank.

It's real hard to kick the tires of a fridge or washing machine online, and Mr. Dixie and I are at the point that local delivery and set up of appliances are a requirement now. But sears, crumbling tho it may be, is still the only place in town that does that.

[FakeNoose]

6. Sears practically invented mail order single-handedly

Sears was a major retail innovator about 100 years ago, now they're a dinosaur. A victim of many bad decisions. At this point I don't see how they can survive, but Walmart and Target may hang in.

[dixiegrrrrl]

11. Amazon's wide choice of merchandise is the new Sears, looks like.

Sears delivered small things via PO, large things (including whole houses from floor to roof, like a huge Ikea project but with quality materials) to rural folks, back in the day when railroads were key land transportation, and I guess one could have had stuff shipped from ports via river and canal boats.
for those rural folks like me, and also for those in urban/city who may not be very mobile, or are too busy working long hours,
the need is the same.

[TreasonousBastard]

4. I don't buy that online shopping is responsible for all of that...

Some of it, for sure, but demographics hurts retail. The aging of the population that already has everything it needs and everyone's incomes not rising enough to pay bigger bills and support more goodies have a lot to do with it.

Biggest problem may have been the overbuilding of malls and shopping centers. It's tough to go more than 20 minutes without seeing a Payless, but how many cheap shoes does one need? We had 4, count'em 4, Sleepy's mattress stores on two miles of Rte 58, two of them across the street from each other. They became Mattress Firm stores, but the four are still there, for now, and empty. How many Dress Barns can the country support?

Walbaum's (formerly A&P) and KMart disappeared primarily through terrible management. Products and prices were great, but both refused to run it like a store. Target, Stop&Shop, Costco, BJ's WalMart, Aldi, and local chains are doing great and are crowded. WalMart and KMart started order online and pick up in store a long time ago. It works for WalMart, and now BJs.

[Maeve]

7. The analysts say that it's because of on-line shopping

What the don't look at is WHY people are going to on-line shopping....total lack of decent service in the stores. And very limited selections.

Example: last week I needed to buy a walker (wrecked my knee, have to stay off it for several weeks). Looked online for one and the cheapest version--noted as BEST SELLER on several store sites--was unavailable in any local store, having checked 5 places that carry them. They only carry the expensive ones in store, better profit margin. I could order it for pick-up in a few days, with a second trip out for it...but with Amazon Prime, it would be delivered to the house within two days, same price. Had my husband been able to pick it up, we would have bought locally.

[TeamPooka]

9. convenience, service, selection, price. If local retailers can't provide those keys 4 aspects of

retail then people will shop online.

[Mosby]

10. amazon distribution centers don't pay 40/sq ft

For rent like, say target.