UBS consumer analyst Michael Lasser told clients that a further rise in e-commerce penetration, from about 22% today to as high as 27%, could force the closure of 40,000 U.S. retail stores by 2030.

The warning comes as more than 10,000 stores have closed since late 2023, and shows how the shift to e-commerce is pressuring brick-and-mortar retail footprints nationwide.

Lasser's forecast is that e-commerce penetration rates in the U.S. will top 27% by the end of the decade, up from the current 22%.

Many of the projected closures will be across clothing, consumer electronics, home furnishings, office supplies, and sporting goods.

The advent of the internet and e-commerce has certainly put pressure on retail stores over the last two decades.

Also, the analysts point out the population winter that Elon Musk has warned about. The lack of a robust new consumer segment will put pressure on the consumer economy in the decades ahead. 

However, stores will continue to play a central role in retail ecosystems.

Big-box retailers have accounted for much of the growth in retail footprint.

The forecasted loss of 40,000 retail stores by the end of the decade would have a meaningful impact on the labor market and commercial real estate. Also, this is yet more evidence that the death of mom-and-pop retailing will accelerate. 

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