More than 1.2 million retail workers, or one-tenth of the Australian labour force, is under threat from the online shopping revolution.
In just three months, more than 29,000 shop assistants lost their jobs across Australia, with department store Myer and telco Optus cutting retail staff.
A new report released today by National Australia Bank showed a dramatic surge in electronic spending, mainly in online retail.
More than 1.2 million retail workers, or one-tenth of the Australian labour force, is under threat from the online shopping revolution (pictured is a Myer store in Sydney)
In just three months, more than 29,000 shop assistants lost their jobs across Australia
The bank’s Cashless Retail Index showed sales activity surged by 10.3 per cent in the year to July.
While it measures more than just online trade, and includes cashless spending on debit and credit cards, it also measures BPAY, where consumers don’t have to physically be in a shop to buy goods.
Between February and May this year, the number of workers employed in Australia’s retail sector dived by more than 29,000, plummeting from 1.313 million to 1,284 million in just three months, Australian Bureau of Statistics figures show.
Retail employees, who are mainly young, casual workers, make up one-tenth of Australia’s 12.579 million workers.
AMP Capital chief economist Shane Oliver said with online trade making up less than seven per cent of Australia’s retail sector, internet commerce was likely to threaten even more jobs in bricks-and-mortar shops.
‘The growth of online is a huge challenge to traditional retail,’ he told Daily Mail Australia today.
‘It can still supplant a lot more of traditional retail sales.’
NAB economist Phin Ziebell said while flat wages and high debt levels were major impediments to retail trade, online shopping was hurting traditional retail trade.
‘There’s no doubt that online is having an impact and will continue to have an impact on the retail sector,’ he told Daily Mail Australia today.
Mr Ziebell employment in the retail sector had been flat for the past five years.
‘We haven’t seen huge growth in total employment in retail trade,’ he said.
A new report released today by National Australia Bank showed a dramatic surge in electronic spending, mainly in online retail
Telecommunications company Optus, which opened 126 new stores only two years ago, announced today it would cut 440 jobs during the next two months
NAB’s most recent monthly business survey has also showed particular weakness in retail trade.
Telecommunications company Optus announced today it would cut 440 jobs during the next two months, just two years after opening 126 new stores.
An Optus spokeswoman told Daily Mail Australia they would be speaking to affected employees first, and ‘discussing redeployment opportunities where available’.
Myer announced in January 50 jobs would be cut and in March announced a half-year loss of $476.2 million.
Millionaire businessman Dick Smith yesterday predicted Chinese online retailer Alibaba could wipe out stores such as Bunnings in Australia after becoming one of the fastest growing retailers in the country.
The founder of Dick Smith Electronics predicted its rise would be bad news for Australian-owned retailers, including the popular hardware chain.
Speaking to Daily Mail Australia, Smith said the phenomenon of customers browsing in stores but then ordering what they want from Alibaba will spell big trouble for traditional outlets such as Bunnings.
‘How do they get around it? They virtually don’t employ anyone, they automate everything. That’s where they are brilliant in their endless greed,’ he said.
‘Unless Bunnings very quickly moves into hardly having any staff, I can’t see how they can compete.’
Australia’s retail sector already offers some of the lowest full-time salaries, with the remuneration of $60,388 well below the average salary across all sectors of $82,435.