Thanks to our Chairman Tony Anzovino of Haggar for alerting us to this article. We're fortunate to have an Executive Committee alert to all of the forecasts and predictions for the next decade, allowing us to remain ahead of the curve together, as a network.
E-commerce could kill 30K stores and half a million jobs by 2025
- 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.
The Euler Hermes report paints a sobering picture of e-commerce's impact on retail and throws some cold water on efforts among industry leaders to fight back against the "retail apocalypse" moniker for the rash of bankruptcies, wind downs, store closures and sales declines across many sectors of retail in recent years. The issues raised point to more than a mere correction of an overstored retail world. Read More