🇺🇸

Growing Sales For Amazon, Etc. Could Lead To Stores Closing

Credit: Newsy Studio
Published 1 week ago - Duration: 01:06s

Growing Sales For Amazon, Etc. Could Lead To Stores Closing

UBS suggests if a trend in online retail sales continues to increase, 75,000 U.S. stores may need to close.

Advertisement

Growing Sales For Amazon, Etc. Could Lead To Stores Closing

An uptick in online shopping could prompt thousands of U.S. brick-and-mortar stores to close in the near future, according to a new analysis.

Investment firm UBS  tells CNBC  that as many as 75,000 traditional store fronts could close if online sales' share of the retail sales sector grows to 25 percent by 2026.

In 2018, that number was  close to 10 percent .  UBS analysts say the breakdown of store closures could include about 21,000 clothing stores, 10,000 electronics stores and 8,000 home furnishing stores.

The figure doesn't include restaurants.  According to industry experts, much of e-commerce growth is being  driven by Amazon .  The company's  close to accounting for about half of the U.S. online retail market.  That prediction is on par with a recent report from the  Commerce Department .

It showed that the total market share of online sales was higher than general merchandise sales, bringing in almost $60 billion in sales in February.  It's not all bad news, though.

UBS suggests that as more physical store locations close, productivity will be boosted for the remaining stores left open.

You are here

Recent related videos from verified sources

Amazon Is Planning To Open A New Grocery Chain 00:44
Credit: Wochit Business - Published 1 day ago 

Amazon Is Starting A New Grocery Chain 00:32
Credit: Wochit Business - Published 2 weeks ago 

Amazon Accused of Illegally Firing Warehouse Worker 00:38
Credit: Wochit Business - Published on March 21, 2019 

Moral At Tesla Reportedly Low 00:32
Credit: Wochit Entertainment - Published on March 11, 2019 

Amazon Is Dropping Pop Up Stores 01:15
Credit: Celebrity Wire - Published on March 8, 2019 

The Retail Apocalypse Continues: Another Mall Chain Just Went Extinct 01:17
Credit: Time - Published on March 7, 2019 

Kohl's Looks to Shrink Stores, Fill Empty Space with Planet Fitness Gyms 01:06
Credit: Veuer - Published on March 5, 2019 

Jim Cramer Likes the Partnership Between Kohls and Amazon: Here's Why 00:59
Credit: The Street - Published on March 5, 2019 

You might like