Retail apocalypse hits brick and mortar stores
Physical clothing, electronics, and home furnishing stores are taking a hit as online penetration led by the e-commerce giant Amazon proliferate in their sales.
According to the estimates provided by UBS online sales growth is likely to rise to 25% by 2026 from 16% today, and this will lead to closures of roughly 75,000 physical stores, excluding restaurants.
In a note to its clients this week, the investment firm said “store rationalization needs to accelerate meaningfully as online penetration continues to rise.” The estimate implies that for every 1% increase in online penetration, roughly 8,000 to 8,500 stores need to close. Currently Amazon dominates about half of the U.S. e-commerce market.
Out of such 75,000 physical stores, clothing accounts for 21,000 stores, electronics for 10,000, home furnishing for 8,000, and home improvement for 1,000. Additionally, 7,000 grocery stores may also close if online grocery penetration rises to 10%, from 2%, by 2026.
In 2019, already over 5,000 store closures have been declared by retailers like Gap, Victoria’s
WMT's RSI Indicator remains in oversold zone for 1 day
It is expected that a price bounce should occur soon.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where WMT advanced for three days, in of 349 cases, the price rose further within the following month. The odds of a continued upward trend are .
WMT may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 398 cases where WMT Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on February 20, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on WMT as a result. In of 76 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for WMT turned negative on February 20, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 44 similar instances when the indicator turned negative. In of the 44 cases the stock turned lower in the days that followed. This puts the odds of success at .
WMT moved below its 50-day moving average on March 06, 2025 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for WMT crossed bearishly below the 50-day moving average on March 07, 2025. This indicates that the trend has shifted lower and could be considered a sell signal. In of 15 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where WMT declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 63, placing this stock better than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. WMT’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (7.716) is normal, around the industry mean (7.552). P/E Ratio (36.282) is within average values for comparable stocks, (37.290). Projected Growth (PEG Ratio) (2.713) is also within normal values, averaging (2.627). Dividend Yield (0.009) settles around the average of (0.025) among similar stocks. P/S Ratio (1.038) is also within normal values, averaging (1.247).
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a retail discount department store
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