<b>Retail</b> Downsizing Will Accelerate, As UBS Predicts 75000 Stores Will Be Forced To Close By 2026 | RetailTechPodcast

Retail Downsizing Will Accelerate, As UBS Predicts 75000 Stores Will Be Forced To Close By 2026

Called "Store rationalization" in an analysis from UBS, it finds that with each 1% increase in online penetration, some 8,000 to 8,500 stores will need to close. At its current rate that means some 75,000 stores will be forced out of business by 2026, or about 7% of the 1,044,754 retail establishments in the U.S. today, according to data from the Bureau of Labor Statistics. Clothing stores will take the biggest hit, losing an excess of some 21,000 stores out of the current 82,200, or some 25%. Consumer electronics stores will drop by 10,000 stores, or 25% of the 39,000 currently standing. Home furnishings will lose 8,000 stores and home improvement stores will drop by 1,000. With 75,000 stores closing over the next 7 years, that translates to nearly 11,000 stores shuttered per year-or nearly double the rate of store closures recently. J.C. Penney will close another 18 department stores and Macy's will close eight. Chico's women's fashion brand will shut between 60 to 80 stores this year, with the intention of closing at least 250 stores over the next three years. Read more