The Long-Term Upshot of Store and Hotel Closures

With reopenings underway across the U.S., a fair number of operators in each of these categories won’t be flicking the lights back on. Marcus & Millichap has provided a high-level view of what to expect long-term in terms of shakeout from the current wave of business closings.

In the case of brick-and-mortar stores, whether the closures stem from corporate bankruptcy or simply weeding out unprofitable locations, “the pandemic accelerated a trend that would have likely played out over the next few years,” according to Marcus & Millichap’s special report, prepared by Scott Holmes, the firm’s national director | retail division.

“Prior to the shutdown, an additional 1% of retail sales were shifting to e-commerce from bricks-and-mortar each year,” the report states. “After spiking to nearly 20% of total sales during the health crisis, online retailing is anticipated to account for 18% of sales when the economy fully reopens.”