Thousands Of Businesses Shutting Down
The world is changing and it’s scary!
If President Biden and Democrat policies weren’t already bad enough for America, new economic predictions now believe that tens of thousands of store shutdowns are on the horizon in the United States.
According to Fox, UBS analysts have estimated that over the next five years, more than 50,000 retail establishments could cease operations permanently. This projection would result in a reduction of approximately 5% in the current number of U.S. stores, which is roughly 940,000, by the end of 2027.
According to a research note by a team led by UBS Equity Research Analyst Michael Lasser, a combination of factors such as a decrease in consumer spending, stricter credit policies, and an increase in e-commerce usage is anticipated to accelerate the closure of stores, with small businesses being the most vulnerable due to their limited financial resources.
As per analysts’ forecasts, the percentage of e-commerce sales is expected to rise from 20% to 26% by 2027, with around 25% of these sales being fulfilled from stores instead of warehouses, up from the current 15%. The analysts have also predicted that retail sales will maintain an annual growth rate of 4%, which aligns with the long-term trend.
Despite the optimistic projections, UBS has cautioned that if a prolonged recession were to occur, it could severely impact sales growth and result in the closure of 70,000 to 90,000 stores.
Compared to the previous year, the number of closed stores has already risen significantly in 2023 due to major retailers like Bed Bath & Beyond, Foot Locker, and bankrupt Tuesday Morning scaling back their operations.
