Michael Corkery writes at
The New York Times:
Between 2010 and 2014, e-commerce grew by an average of $30 billion annually. Over the past three years, average annual growth has increased to $40 billion.
“That is the tipping point, right there,” said Barbara Denham, a senior economist at Reis, a real estate data and analytics firm. “It’s like the Doppler effect. The change is coming at you so fast, it feels like it is accelerating.”
This transformation is hollowing out suburban shopping malls, bankrupting longtime brands and leading to staggering job losses.
More workers in general merchandise stores have been laid off since October, about 89,000 Americans. That is more than all of the people employed in the United States coal industry, which President Trump championed during the campaign as a prime example of the workers who have been left behind in the economic recovery.
...
“This is creative destruction at its best,” said Mark Zandi, chief economist at Moody’s Analytics. “We are downsizing a part of the economy that is uncompetitive. While painful for those in the middle of it, this is how we grow and wealth is created.”
But Mr. Cohen, of Columbia University, said the upending of an entire industry w
ill not be so tidy. Warehouses like the one in Red Hook typically employ a few hundred people, according to Sitex Group, a private equity firm that is expected to close on the property in a few weeks.
While these distribution centers could replace some of the work lost in stores, they likely won’t make up the entire difference. That is because much of the operations are automated and require different skills and sensibilities than selling jeans.
