Moscow, 31 Jan – “News.Economy.” The retail sector in the United States is experiencing in recent years serious problems: closed shops, reduced the number of jobs falling profitability. The development of e-Commerce is unable to rectify the situation in the industry. This is stated in the study of the problems of American retail, prepared by the international insurance company Euler Hermes (“Euler Hermes”).
Euler Hermes is a global leader in credit insurance and receivables management and are represented in all regions of the globe, including Europe, the US and Russia.
according to experts Euler Hermes, at first glance, the current situation in the retail sector in the United States is a typical example of what Austrian economist Joseph Schumpeter called “creative destruction”: new players benefit offered them a growing market or create new markets, and it all happens entirely at the expense of existing companies.
In the long run creative destruction, as is commonly believed, should have a positive impact on the economy.
However, judging by the numbers, indicating the decrease in the number of companies, loss of jobs and the decline of profitability in us retail, it turns out that more “young” factor – namely, the e – Commerce does not compensate for the destruction of “physically existing” traditional shops.
Despite the significant costs to consumers for the purchase of commodities (consumer discretionary goods), in the United States since 2008 were closed more than 56 thousand of shops selling similar goods. This is 10.7% of the total number of such stores. Data about situation in the sphere of employment paint an equally gloomy picture: the number of jobs in the industry with 2008 decreased by 670 thousand (a decrease of 9.6%).
Number of stores selling commodities in the U.S.
According to Euler Hermes, one job created in the field of e-Commerce, we have 4 and a half jobs have disappeared in traditional retail, selling goods not the first necessity. And if you look at the types of goods that were traded the missing stores, you can see that it is a massive decline in their numbers is mostly based on the penetration of e-Commerce. Most stores have disappeared in the segment of products for hobby (hobby goods): toys, books, audio and videotapes, etc. a Growing tendency of customers to order products online have had a negative impact on the attendance of shopping malls and Department stores: number of employees in the last fell hardest (24.5%).
Experts Euler Hermes drew attention to the pronounced growth of insolvency of major retailers after 2015, the amount of their debt has exceeded $45 billion. the Most resonant cases show significant reduction in the profitability of companies. After examining the statements 127 U.S. legal entities, experts Euler Hermes found that one out of every 10 retailers whose shares were quoted on the stock exchange, went bankrupt after 2008, and another 41% reduction in the rate of profit, particularly in the segments of Department stores, discount stores, and clothing stores. Text: News.Economy