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Pack It Up, Pack It In, Let Shein Begin
45,000 bricks-and-mortar stores will close in the next few years, and it's all because of the big e-commerce players. Marketers' only hope? Go omnichannel.
by Tod Maffin (LinkedIn • social media)
Today's News
RETAIL • E-Commerce Blamed as Stores Close
A new report from the wealth management fund UBS says up to 45,000 brick-and-mortar stores in the U.S. will close in the next four years — and it’s all because of online shopping.
This would put the online share at 26% overall. It’s currently about 21%.
The surge in e-commerce, driven by platforms like Temu and Shein, is pressuring traditional retailers to cut their physical presence, particularly in sectors like apparel, consumer electronics, and home furnishings.
It’s already happening
Notable retailers such as Foot Locker, Davids Tea, and Bed Bath & Beyond have already either closed most stores or shifted entirely online.
Department stores, in particular, are expected to keep losing market share, mainly to off-price retailers.
To be fair, it’s not just the Internet to blame here — other factors like banks' tighter lending policies, and a consumer shift towards spending on services can be blamed as well.
Shipping hubs, not selling hubs
Despite the trend towards closures, UBS says physical stores will still play a crucial role in the retail ecosystem — not as places to buy, but more as hubs for fulfillment and distribution.
Retailers that invest in omnichannel experiences, like Walmart, Target, and Home Depot, are likely to thrive. But smaller chains and independent shops without the capital to invest in these adaptations could have a rough couple of years ahead.
Today’s Trivia
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Which company started as a catalog mail-order business targeting rural Americans in the late 19th century? |
TIKTOK • Breaks Stalemate with UMG for Licencing
The music is back!
TikTok and Universal Music Group have signed a new licencing deal, resolving a three-month deadlock, and restoring access to music from some of the biggest names in pop music.
The deal was announced this morning, and not only reintroduces Universal’s roster to the platform, but also gives more money to artists and addresses the label's concerns about A.I.-generated content.
The big names are back (some already were)
The dispute had removed key artists from TikTok, like Ariana Grande, Billie Eilish, Drake and U2.
It had also removed Taylor Swift from TikTok, but her people somehow signed a side deal to get her music back on during the promotional period for her new albums.
What’s next
This new deal includes some vague statements about e-commerce in the future, possibly event ticketing, and TikTok has promised to invest more in better analytics.
The financial terms weren’t disclosed, but TikTok says they expect to bring the affected songs back to the platform within a couple of weeks.
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