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The big wave of retail store closings that has taken hold of America while the surge in online shopping is not ending any time soon.
In fact, Goldman Sachs thinks that the situation will probably worsen.
"Our REIT team does not expect a short-term reversal of store closures at retailers, which should continue to generate eCommerce share gains, in our opinion," Heath Terry said Tuesday. , Goldman Sachs analyst, in a new research note addressed to clients.
This chewing nugget for investors was buried on page 10 of Terry's report. But this should really be at the top, because store closures no longer make it possible to maintain the profitability of sales spaces as in the past. Rather, it could be argued that store closures are pushing more people to buy desktops, tablets and mobile phones – a transaction that is generally less profitable for retailers because of the free transportation costs and investments in the creation of digital capabilities.
Printed paper sign on the door of the Toys R Us store in Dublin, California, as a result of the bankruptcy of the company, with yellow stripe and reading text "Thank you for shopping with us all these years, we hope to make a triumphant return in the future, and thanks Thank you for never growing up, because if you never become a child of Toys R Us ", July 23, 2018. (Photo by Smith Collection / Gado / Getty Images )
In fact, store closures are beginning to accumulate enormously.
There are already 11,000 store closures this year, exceeding the annual number of recent years, according to Terry. The CoreSight research, cited by Terry, predicts that the number of retail store closures will reach 12,000 by the end of the year.
The line is obviously still the big winner here.
"We believe that the growth of e-commerce will likely accelerate during the second half of the year, while a record number of closures of retail stores, initiatives such as the investment of 800 Millions of dollars from Amazon in the same day delivery and Etsy's move to free shipping, as well as simplifying the consumers to move their shopping online, "writes Terry.
<p class = "canvas-atom web-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Specific names Terry think the market share gains will be including Amazon (AMZN), Etsy (ETSY) and Stitch Fix (SFIX). "data-reactid =" 34 "> Specific Names Terry believes that market share gains include Amazon (AMZN), Etsy (ETSY) and Stitch Fix (SFIX).
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