Shrinkage Lies Ahead for U.S. Retail Stores in UBS’s View

Retailers use “shrinkage” when referring to goods or money that should be available, but isn’t. The word might also describe what U.S. retail stores are facing. More than 80,000 are likely to shut down during the next five years, according to estimates that UBS Group AG’s retail analysts made in a report Monday. Clothing and accessory retailers are most at risk, as UBS sees them accounting for more than 25% of closings. The estimates reflect assumptions that e-commerce will climb to 27% of sales in 2026 from 18% last year, and that the amount of orders filled at retail locations will double to 20%.