As we enter the era of digital transformation, e-commerce has been rapidly changing the way consumers shop. With online marketplaces becoming more accessible and convenient, brick-and-mortar stores have struggled to keep up. But what does this mean for retail employment in 2023? Will e-commerce continue to dominate, or will traditional retailers find a way to adapt and thrive? In this blog post, we explore the impact of e-commerce on brick-and-mortar stores and its implications for retail employment in the years ahead. Join us as we delve into an exciting frontier where innovation meets disruption!
Background
E-commerce is a growing industry that has had a significant impact on the retail sector. According to a study by Forrester Research, e-commerce sales are expected to grow from $2.8 trillion in 2016 to $5.9 trillion by 2021. This growth has impacted the retail sector in a number of ways, including the decline of brick-and-mortar stores.
Brick-and-mortar stores have been declining in popularity for several years now, and according to a study by specialty retail consultant firm Adept Group, the share of U.S. retailers with at least one physical location will be below 50 percent by 2020. This decline in brick-and-mortar stores has resulted in a rise in e-commerce sales, which have already accounted for more than half of all retail sales online.
The impact of e-commerce on brick-and-mortar stores has had several consequences for the retail workforce. First, as brick-and-mortar stores have been declining in popularity, many retailers have been forced to close their doors and lay off employees. Second, as e-commerce becomes more popular, there is an increasing demand for skilled workers who can handle digital transactions and provide customer service via phone or online chat rooms. Third, as e-commerce continues to grow and become more sophisticated, there is an increased need for professionals such as accountants, lawyers, and designers who can help run businesses through electronic channels. Finally,
The Role of E-commerce in the Retail Industry
The use of electronic commerce has had a profound impact on the retail industry, with brick-and-mortar stores struggling to keep up. In fact, according to eMarketer, the retail industry is expected to be the largest segment of the global economy by 2021.
However, there are some benefits for traditional retailers as well. For one, ecommerce has helped drive down prices across the board for items sold online. This has benefitted consumers and given them more money to spend elsewhere in the economy. Additionally, online shoppers are more likely to return items if they’re not happy with them, which can help bolster store sales.
Despite these benefits, there are also some drawbacks for traditional retailers. For one, ecommerce takes away jobs from brick-and-mortar stores. This is because ecommerce companies need employees to handle customer service and stock inventory; without those jobs, most brick-and-mortar stores would have trouble surviving. Additionally, many people who work in ecommerce start their own businesses rather than take a traditional job with a company like Amazon or Walmart. This means that they don’t have the same stability or benefits that employees at a larger company do.
E-commerce’s Impact on Retail Employment
According to a study by the National Retail Federation (NRF), as e-commerce continues to grow, retail employment will decrease. In 2016, NRF conducted a survey of 1,500 U.S. workers and found that 47 percent of respondents said they had either left their job or were looking for a new one because online retailers are able to offer lower wages and fewer benefits than traditional brick-and-mortar stores.
This trend is likely to continue as more people switch to shopping online. Currently, about two-thirds of all consumer spending takes place online, and this figure is only going to increase as consumers become more comfortable with making purchases electronically. This means that even if brick-and-mortar stores find ways to keep up with the competition, they’re going to have a hard time retaining workers.
As e-commerce continues to grow, it will have an impact on both the number of jobs available in the retail industry and the wages that those jobs pay. It’s important for merchants to understand this trend so they can make wise decisions about how best to cater their businesses to customers who prefer buying goods online.
What Stores Are Most at Risk?
1. According to a study by Greenwich Associates, traditional brick-and-mortar stores are most at risk from the rise of e-commerce. The study found that 79% of retail sales now occur online, and that this number is only going to increase in the future. This means that a lot of jobs in the retail sector are at risk, and it is important for businesses to understand what these risks are if they want to keep their employees happy and healthy.
2. The biggest threat to retail jobs comes from online retailers who can undercut brick-and-mortar stores on prices. As a result, many brick-and-mortar stores have been closing down or putting their staff on layoff in order to compete with online retailers. In fact, according to the National Retail Federation, more than half of all job losses in the United States since 2007 have been due to the rise of ecommerce.
3. However, there are some ways that brick-and-mortar stores can fight against this trend. For example, they can invest in ecommerce capabilities so that they can stay competitive on price. They can also try to differentiate themselves by offering unique products or services that cannot be found online. If done well, these strategies could help store owners keep their workers and keep their business afloat.
Conclusion
Retail employment is predicted to decline by as much as 14% in 2023 as e-commerce continues to grow in popularity. The impact of online sales on brick-and-mortar stores has been a topic of concern for some time, and the trend seems to be only continuing its downward trajectory. While it’s important to note that not all retail jobs are at risk, it’s clear that those working in traditional stores will need to find new skills if they want to keep their positions. This is something that employees and employers should be aware of and plan for accordingly.
