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 saw its Momentum Indicator move above the 0 level on January 15, 2025. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 78 similar instances where the indicator turned positive. In of the 78 cases, the stock moved higher in the following days. The odds of a move higher are at .
The Moving Average Convergence Divergence (MACD) for WMT just turned positive on January 22, 2025. Looking at past instances where WMT's MACD turned positive, the stock continued to rise in of 44 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where WMT advanced for three days, in of 346 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 400 cases where WMT Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The RSI Indicator demonstrates that the ticker has stayed in the overbought zone for 14 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 16 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
WMT broke above its upper Bollinger Band on January 24, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding 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 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 61, 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 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 (9.488) is normal, around the industry mean (8.085). P/E Ratio (42.992) is within average values for comparable stocks, (41.120). Projected Growth (PEG Ratio) (3.134) is also within normal values, averaging (2.885). Dividend Yield (0.008) settles around the average of (0.023) among similar stocks. P/S Ratio (1.249) is also within normal values, averaging (1.298).
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a retail discount department store
Industry DiscountStores