Why Digital Sales May Actually Be Bad for Retailers

The coronavirus pandemic changed the way a lot of people shop. For the past couple of years, a growing number of consumers have taken to ordering goods online rather than running the risks of shopping in person.

Of course, a boom in online sales is bad news for real estate investors -- particularly those with money in retail REITs, or real estate investment trusts. If consumers continue to favor digital orders, it'll be harder to make the case to keep stores open. And if retail chains start shuttering locations in short order, the shopping centers and malls that rely on them for rental revenue will left deep in the lurch.

But while online sales may not be great for real estate investors, ultimately, they serve the purpose of pumping revenue into the companies that need it. Or do they? While it's true that digital sales allow retailers to reach more customers, there's a flip side that could be costing retailers big time.

Source Fool.com