The retail industry is now stronger than ever. Just last year it reached an astounding $2.6 trillion in total GDP impact, and supported 1 in 4 American jobs. Yet, research at Adzuna shows that retail it is no longer what it used to be. With millions of users switching to digital platforms for the sake of convenience, traditional retail jobs are being gradually replaced by IT related roles.
With online shopping staggeringly growing, e-commerce currently accounts for an estimated one-tenth of worldwide retail sales. While this number is expected to grow, physical stores are not going away just yet. Brick-and-mortar shops are adapting to the technological demands of our age, implementing the digital into the physical shopping experience. This widespread phenomenon has led many to concern over the long-term effects of e-commerce and digitalization upon retail jobs.
Research at Adzuna shows that while the concern is partly justified, with millions of manual jobs being eliminated due to the digital disruption, the e-commerce sector is adding more new roles at a faster rate than the general retail sector is losing them. Moreover, the Bureau of Labor Statistics revealed that between 2007 and 2016, there were 355,000 new jobs created in the e-commerce sector with a net increase of 304,000 jobs in the retail sector.
To better illustrate the impact of technology on the market, we’ve considered the example of the industry behemoth – Walmart. An aggressive digital strategy is without a doubt among the main driving forces behind the firm’s startling success. Fittingly, Adzuna’s data indicates that approximately 35% of all jobs currently available at the big box retailer are IT- specific roles, with Software Engineers being the highest in demand. What’s more, the company is really driving progress through introducing state of the art tech in everyday shopping experiences. Famously, they recently completed a test of Mobile Express Scan & Go. Although the service has been shelved, the superstore officially stated: “we’re always working to bring customers more convenience, and so we’ll use what we’ve learned to improve this and other services in the future.”
Not far down the list of America’s Top 100 Retailers, Amazon.com is the undisputed leader in online shopping. Owning about 49% market share in US e-commerce, the company is also triumphant for reaching 300,000 jobs faster than any other company in U.S. history. According to Adzuna’s statistics, nearly 50% of Amazon’s currently advertised jobs are within the IT category, with a majority of jobs located in US tech hubs Washington, California, and Virginia.
Based on this insight, we can anticipate that technology will continue to dominate the job market. As we become increasingly dependant on technology, it will inevitably advance its disruptive course into other sectors as well.