According to a new study, it was found that 56,000 stores have closed in the U.S. and 670,000 net jobs (9.6% of the total) have been lost since 2008. E-commerce has wreaked destruction, permanently wiping jobs out of the economy and lowering profits for the entire industry, per the report. The study was conducted by credit insurance company Euler Hermes. Department stores have been hit hardest. Nearly a quarter of the sector’s jobs have been lost since 2008, according to Euler Hermes. Hence the term “destructive destruction,” used by research, rather than the “creative destruction” that some economists see as essential to economic progress. Moreover, 41% of retailers have seen their profit margins decrease in that timeframe. Those various retail losses have tracked with the expansion of e-commerce. But for every job created in e-commerce, four and a half jobs are lost by traditional retailers, according to the study. Duthoit, sector advisor for retail, technology and household equipment with Euler Hermes, estimates that continued e-commerce penetration could eliminate another 500,000 jobs and 30,000 retail establishments by 2025. E-commerce is largely a ‘winner-take-most’ business where leaders have a commanding share of sales, and more importantly, of profits. Duthoit cites Amazon and eBay as the only two discretionary e-commerce companies with both a strong track record of profitability and significant clout. According to the study, efforts to boost e-commerce bring new expenses and risks, and won’t necessarily save a distressed retailer. Among the dozens of large retailers to file over the past three years, many described an environment where shoppers quickly shifted their behavior, reducing mall visits and increasing their online shopping. Some of those companies were able to reorganize and return to the business of retailing a little leaner. Some forces could cause e-commerce’s rapid growth to stall according to the Euler Hermes report. Those forces include policy measures, such as antitrust action against dominant e-commerce firms, such as, Amazon is currently facing multiple investigations into its practices and carbon pricing.
Welcome! Log into your account
Recover your password
A password will be e-mailed to you.
Thanks for finally talking about > Every job in e-commerce: four and a half jobs are lost | NNO নিউজ < Liked it!
Hey there! Do you use Twitter? I’d like to follow you if that
would be ok. I’m definitely enjoying your blog
and look forward to new updates.
Touche. Great arguments. Keep up the good work.
Unquestionably consider that which you stated. Your favourite justification seemed to be on the net the easiest thing to take note of.
I say to you, I definitely get annoyed even as people consider worries that they plainly do not realize about.
You managed to hit the nail upon the highest as neatly as defined out the whole thing with no need side effect , other people
can take a signal. Will likely be again to get more.
Oh my goodness! Awesome article dude! Many thanks, However I am experiencing problems with your RSS.
I don’t know why I can’t join it. Is there anybody
else getting identical RSS issues? Anyone who knows the answer will you kindly respond?
Wow that was strange. I just wrote an incredibly long comment
but after I clicked submit my comment didn’t show up. Grrrr…
well I’m not writing all that over again. Anyway, just wanted to say superb blog!