Home Economy Is Amazon helping to fuel the death of the High Street?
Amazon’s growth creates 5,000 jobs, but what about the 30,000 they will cost, asks e-commerce delivery specialist?
Amazon’s 5,000 new jobs are a ‘drop in the ocean’ compared to the 30,000 High Street retail jobs being lost this year, suggests ParcelHero
Amazon UK announced this week the creation of up to 5,000 British jobs in 2017; but analysis from e-commerce delivery specialist ParcelHero has revealed that these could come at the expense of 30,000 High Street jobs this year.
ParcelHero’s head of consumer research, David Jinks MILT, said: “Amazon announced with much fanfare on Monday that it will create 5,000 full time jobs over the course of the year; but these jobs come with a heavy price tag.
“The growth of e-commerce, and particularly the impact of Amazon, is having a disastrous impact on the traditional British High Street.
“Our analysis, revealed in our new report ‘2030: The Death of the High Street’, and supported by figures from The Centre for Retail Studies, reveals 30,000 High Street shop jobs will be lost this year. That’s largely due to the impact on e-commerce and home deliveries.
“These job losses come on top of the 26,053 already lost in retail last year. And that’s just the tip of the iceberg. The home shopping revolution, being spearheaded by Amazon, will result in the closure of half of all existing stores by 2030 as e-commerce reaches 40% of the overall retail market. Unless brick and mortar stores learn to embrace new technology and develop a multi-platform approach to retail, the overall job losses will be enormous.
“The UK retail sector employs 2.77 million people today; and the vast majority of those jobs are in High Street stores. Over a million are likely to lose their job by 2030 if the predictions in our report hold firm; and independent High Street retailers fail to learn how to work alongside the e-commerce Revolution.
“Amazon has to be admired for it continuous investment – especially at its Development Centres in Edinburgh, Cambridge and London, where hi-tech projects such as Alexa, Prime Air, Prime Video, and cloud computing are being developed.
“But these 5,000 new jobs, primarily based at its fulfilment centres, are really a drop in the ocean against the huge amount of shop jobs the UK is losing to internet sales. And that’s before the impact of planned changes in business rates, which will see some High Street stores facing considerable extra costs. So let’s put the champagne on hold – or at least make sure it’s bought from the High Street…”