Here's What Bed Bath & Beyond's Bankruptcy Really Means for the Future of RetailNew research from investment bank UBS reveals big changes on the horizon.
ByAmanda Breen•
Bed Bath & Beyondfiled for bankruptcyon Sunday, and it suggests a bleak future forbrick-and-mortarretailers.
New research from investment bank UBS estimates that 50,000retail storesout of the 940,000 currently operating in the U.S. will close their doors by 2027 (not including gas and food-service stations),Yahoo Financereported.
Related:Bed Bath & Beyond Plans to Raise Over $1 Billion to Pay Debts and Avoid Bankruptcy
"While there was a pause on store closures over the last few years, we believe this activity is set to sharply accelerate moving forward," UBS retail analyst Michael Lasser said.
Several factors will contribute to the eventual mass shuttering, including decreases inconsumer spendingand available credit, and increases in the penetration of retail shopping and cost to run retail stores, according to Lasser.
Thepandemicwas also harder on Bed Bath & Beyond than it was on its competitors, owing to the company's decentralized system and less developed ecommerce technology,The New York Timesreported.
Per Lasser's calculations, if 50,000 stores close within the next five years, and the average sales per store is $5.7 million, that will leave $285 billion in retail sales "up for grabs" — giving major competitors better-positioned for online shopping the chance to capitalize big time.
