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Online shopping leads to massive reductions in offline stores

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Investment company UBS has published a report, according to which expected a global reduction in the number of offline stores by 75 thousand by 2026.

Analysts say the closure of businesses will affect many retail chains, including about 21,000 clothing stores, 10,000 consumer electronics stores, and 8,000 home goods stores.

The reason for closing will be the fact that buyers increasingly prefer to shop on the Internet. UBS reported that last year the average American household spent $ 5,200 on online purchases, almost 50 percent more than five years earlier.

Since 2017, in the United States alone, retailers have closed more than 15,000 stores. And although, according to UBS analysts Jay Sole and Michael Lasser, sales in stores actually increased in 2018, this year growth is likely to be reversed.

And although some online companies continue to open their own stores, they operate more like showrooms than fully stocked outlets. “The trend tends to more orderly shopping: less chaos, less inventory, less choice,” analysts say. “If a customer wants something of a different color or size, he can easily find it on the Internet.”

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