UBS Analysts Estimate E-Commerce Growth Could Lead to 75,000 Stores Closing By 2026

By:
Chris Gaetano
Published Date:
Apr 9, 2019
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While it is generally understood that e-commerce presents a direct threat to brick-and-mortar stores, a recent analysis from UBS has quantified the impact to about 75,000 stores, should online retail grow to 25 percent of total sales by the year 2026, according to CNBC. Today, about 16 percent of all retail transactions happen online. The UBS analysis says that for every 1 percent increase in online penetration, roughly 8,000 to 8,500 stores will need to close if their companies plan to survive. Specifically, if the rate gets to 25 percent by 2026, the analysis says 21,000 clothing stores, 10,000 consumer electronics stores, 8,000 home furnishing stores and 1,000 home improvement stores could close across the nation. These sorts of closures, according to UBS, will ensure that the remaining stores could maintain their productivity.

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