Retail Store Cannibalization: Walmart Latest To Fall Prey (Revised)
Zacks Investment Research | Jul 08, 2019 05:22AM ET
The retail space is currently passing through turbulent times despite a relatively healthy U.S. economy with record-busting equity market performance by benchmark indices. Dwindling sales by several underperforming stores have led to a surge in brick-and-mortar store closures, following the principle of ‘survival of the fittest’.
In 2018, the retail sector reportedly witnessed 5,864 store closures as low customer footfall generated soft turnover, rendering most brick-and-mortar stores financially unviable. With online shopping fast becoming the preferred mode of transaction, about 5,994 store closures are in the cards this year as retail sector bankruptcies are piling up. Notably, online shopping is likely to swell from 16% of retail sales at present to 25% by 2026, bringing on the chopping block an estimated 75,000 stores. (Read More: Zacks Investment Research
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