Automation to affect 7 million retail jobs in US: Study
Nearly 7 million retail jobs might go out of existence in next 10 years in the US due to the rising automation in retail industry. This is what the study ‘Retail Automation: Stranded Workers? Opportunities and Risks for Labor and Automation’ by Cornerstone Capital Group indicate
Of the 30 retail companies analysed and examined in this report, most are considering the use of in-store technology such as mobile devices, self-checkout, digital kiosks and proximity beacons. Additionally, sensor-based checkouts and smart shelves are some technologies that are being adopted by Amazon Go stores.
Furthermore, the study says that around 16 million Americans are employed in retail sector, which represents 10 per cent of the country’s working population and generates 6 per cent of US gross domestic product (GDP). The hardest hit would be easily automated jobs, such as those of retail cashiers. Women are also seen to be affected, as they hold 73 per cent of retail cashier positions.
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However, automation stands to benefit highly skilled workers who could be relieved of monotonous tasks. Jobs such as salespersons, freight handlers and store greeters might be less affected. The study also forecast that retained retail workers would receive increased training and higher salaries, while companies could reduce layoffs and provide a better customer experience.
Erika Karp, Cornerstone Founder and Chief Executive Officer, cited, “The retail landscape is changing rapidly and investors need to understand the social and governance issues impacting valuations for public companies in this sector. The winners in retail will be companies that provide recruitment, retention and training for workers and innovate with forward-thinking future store strategies.”
