E-commerce and Retail.

E-commerce continues to shut down many physical stores worldwide. However, these shutdowns do not necessarily mean that the economy is in trouble. In reality, consumers are simply shifting to more efficient ways of purchasing goods. In this blog, we want to talk about e-commerce and the effects that e-commerce will have on physical retail locations and on warehouse/distribution centers across the United States.

As e-commerce becomes more popular for consumers, more large brick-and-mortar retailers will continue to die out. According to USA Today, approximately one-thousand stores were closed in the United States in 2016 by popular brands such as Macy’s, Sports Authority, Walmart, Kmart/Sears, and Ralph Lauren (Carrig, 2016). One might think that this would mean that there will be fewer jobs because of shutdowns – not necessarily. Instead, American jobs will likely start to shift from physical retail industry to the logistics and supply chain industries.

Moreover, e-commerce isn’t just changing retail, it’s also changing the services industries as well. Uber and Lyft are perfect cases in point.

A New Generation of Consumers.

Unsurprisingly, this trend will continue to grow as more millennials continue to gain more buying power. According to Pew Research Center, “Millennials have surpassed Baby Boomers as the nation’s largest living generation…” (Fry, 2016), and millennials love nothing more than shopping online. In fact, according to a publication by UPS, millennials make 54% of all of their purchases online (United Parcel Service of America Inc., 2016). The publication also suggests that more shopping will be done on mobile devices such as smartphones and tablets as time goes on and as technologies continue to be developed.

Warehouse and Distribution Centers Will Bloom.

Because of these trends, we can only assume that more corporations will be transitioning to e-commerce retail and relying less on storefront centers. This is good news for warehouses and distribution centers because an e-commerce retailer cannot function without solid logistics and supply chains working behind the scenes. Of course, advances in warehouse automation will help facilitate some of this demand, however, the demand for experienced and reliable warehouse workers will begin to grow as well.

Partnering with A Staffing Agency.

By partnering with a staffing agency, most warehouses and distribution centers will be able to meet the fluctuating demands of e-commerce markets. It is no surprise that certain seasons have a higher volume of online sales – particularly during the holiday seasons.

If you are a small business owner seeking to expand your warehouse into e-commerce environments, then why not partner with Continuum Staffing – the warehouse staffing professionals! We can provide temporary seasonal or direct hire solutions for small warehouses that need to stay nimble in a fluctuating e-commerce heavy economy. Contact us today, and discover how we can help!

References

Carrig, D. (2016, August 11). Top retailers that are closing stores in 2016. Retrieved from usatoday.com: http://www.usatoday.com/story/money/business/2016/08/11/retailers-closing-stores-macys-walmart-kmart-sears-aeropostale/88560318/

Fry, R. (2016, April 25). Millennials overtake Baby Boomers as America’s largest generation. Retrieved from pewresearch.org: http://www.pewresearch.org/fact-tank/2016/04/25/millennials-overtake-baby-boomers/

United Parcel Service of America Inc. (2016, June). UPS Pulse of the Online Shopper. Retrieved from solvers.ups.com: https://solvers.ups.com/assets/2016_UPS_Pulse_of_the_Online_Shopper.pdf

 

 

Tags: , , , , , , ,