Here’s Why The ‘Retail Apocalypse’ Won’t Happen

It might seem obvious to some, but stores still need to exist in retail because shoppers value being able to see and touch an item before they purchase it, one Wall Street firm is telling its clients. As more consumers turn to their laptops and smartphones to buy things online, some people have started to write off stores in malls and shopping centers. But UBS is saying the “death of stores” narrative is far from true. In fact, it’s predicting sales that take place in bricks-and-mortar stores still have room to grow. To be sure, more store closures are inevitable in the coming years, as many analysts agree the U.S. is still “over stored.” UBS predicts about 2 percent of stores in the country will close each year, but that’s not a “retail apocalypse,” according to analyst Jay Sole. The firm said the bulk of closures will take place in less profitable malls, often referred to a C malls, and many of them will be by local or lesser-known brands. Read more at CNBC.