Here's What Bed Bath & Beyond's Bankruptcy Really Means for the Future of Retail
UBS predicts that electric vehicles will make up 14% of new car sales by 2025.
Bed Bath & Beyond declared bankruptcy on Sunday. It's a sign of bleak prospects for brick-and mortar retailers.
Yahoo Finance reported that according to a new study by investment bank UBS, 50,000 of the 940,000 retail stores currently operating in the U.S. are expected to close their doors before 2027. This does not include gas stations and food service stations.
Bed Bath & Beyond plans to raise over $1 billion to pay debts and avoid bankruptcy
Michael Lasser, UBS Retail Analyst said: "While store closures have been on hold for the past few years, this trend is expected to accelerate in the future."
Lasser says that a number of factors will lead to a mass closure, including a decrease in consumer spending, a reduction in credit available, an increase in retail sales and heightened costs to operate retail stores.
The New York Times reported that Bed Bath & Beyond was hit harder by the pandemic than its competitors because of their decentralized system and lower-developed ecommerce technology.
Related: Bed Bath & Beyond is closing hundreds of stores -- Here are the much-loved retailers ready to move in
According to Lasser, if there are 50,000 store closures within the next five-year period, with an average sale of $5.7 million per store, this will leave $285 Billion in retail sales available for "grabbing" – giving the opportunity for major competitors who have a better online presence the chance for big profits.