CNBC recently shared an article in which research experts forecasted the closing of 25,000 retail stores this year. The same article features predictions that total retail sales in the U.S. will fall more than 10% for 2020.
But closures are not a death sentence for retail brands. Instead, they suggests a shift toward prioritizing online retail and e-commerce growth.
Data from ccinsight shows that the US is seeing tremendous growth in online retail and e-commerce revenue for 2020. This trend shows no signs of reversing, even as stores are opening throughout the nation (though the rate may stabilize).
As this trend continues, and as widespread store closures appear to be imminent, expect many retail brands to downsize their physical presence in order to focus on online sales growth. It’s possible we might even see some small- to mid-sized retail brands completely drop their physical presence, and instead, become pure e-tailers.