Goldman Sachs Says Mass Retail Store Closures Will Continue To Rip Through The U.S.
The great retail store closure wave that has gripped America amid the push to online shopping won’t be ending anytime soon. In fact, Goldman Sachs thinks it will probably get even worse. “Our REITs team does not expect a near-term reversal of store closures from retail tenants, which should continue to result in eCommerce share gains, in our view,” says Goldman Sachs analyst Heath Terry in a new research note to clients on Tuesday. That nugget for investors to chew on was buried on page 10 of Terry’s report. But it should really be at the top because store closures are no longer doing the trick to shore up the retail space’s profitability as in years’ past. Instead, the argument could be made store closures are only pushing more people to shopping on desktop computers, tablets and mobile phones —which is usually a less profitable transaction for retailers due to free shipping costs and investments in building out digital capabilities. Read more at Yahoo Finance.
