UBS bets against retail apocalypse
UBS has no intention of writing off the value of stores operating in malls and shopping centers.
Despite the growth of online shopping and ongoing chatter about a retail apocalypse, the financial services firm predicted that sales taking place in bricks-and-mortar stores still have room to grow, according to CNBC.
While UBS predicts that approximately 2% of stores in the country will close each year, the bulk of closures will take place in less profitable malls, and many of them will be by local or lesser-known brands. “But that's not a "retail apocalypse," according to UBS analyst Jay Sole.
Further, UBS forecasted that stores can still deliver about 1% of sales gains annually, assuming U.S. retail sales overall keep climbing at a rate of about 3% — and that should hold true at least through 2022, according to CNBC.
To read more, click here.
Despite the growth of online shopping and ongoing chatter about a retail apocalypse, the financial services firm predicted that sales taking place in bricks-and-mortar stores still have room to grow, according to CNBC.
While UBS predicts that approximately 2% of stores in the country will close each year, the bulk of closures will take place in less profitable malls, and many of them will be by local or lesser-known brands. “But that's not a "retail apocalypse," according to UBS analyst Jay Sole.
Further, UBS forecasted that stores can still deliver about 1% of sales gains annually, assuming U.S. retail sales overall keep climbing at a rate of about 3% — and that should hold true at least through 2022, according to CNBC.
To read more, click here.