E-commerce could kill 30K stores and half a million jobs by 2025
E-commerce is hammering stores, shares a study appearing in RetailDive. Each e-commerce job kills four traditional jobs, and it may help close 30k stores in the next 5 years.
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Euler Hermes report
- E-commerce has been a net negative — an agent of "destructive destruction" — for the retail industry writ large, according to a new study from credit insurance company Euler Hermes. The study found that 56,000 stores, or 10.7% of the discretionary retail footprint, have closed in the U.S. and 670,000 net jobs (9.6% of the total) have been lost since 2008.
- More, 41% of retailers have seen their profit margins decrease in that timeframe. Those various retail losses have tracked with the expansion of e-commerce, which has grown well ahead of other retail segments at 10.5% per annum. But for every job created in e-commerce, four and a half jobs are lost by traditional retailers, according to the study.
- And the bloodletting could continue, according to the study's author, Aurélien Duthoit, sector advisor for retail, technology and household equipment with Euler Hermes. Duthoit estimates that continued e-commerce penetration could eliminate another 500,000 jobs and 30,000 retail establishments by 2025.
Shared: January 24, 2020