The eCommerce Effect: Major Departmental Stores Are Set To Close Hundred of Stores, Cut Thousands of Jobs

The eCommerce Effect: Major Departmental Stores Are Set To Close Hundred of Stores, Cut Thousands of Jobs

 

In Brief
  • Retailers worldwide are struggling to maintain a healthy business
  • An increasing number of people are shopping online
  • In Bangladesh, 65 million use internet and online shopping is on the rise

Macy’s and Sears, two of the America’s most iconic department stores, recently announced massive cutbacks due to slow holiday sales that will lead to the shutdown of hundreds of locations and cutting thousands of jobs. According to a report by CNN, Macy’s is shutting down 68 stores and cutting more than 10,000 jobs and Sears is shuttering 150 of its stores, including 108 Kmarts, said another report by ABC.

According to expert, this is nothing unusual. is inevitable for brick and mortar stores. Increasing number of people are now buying things online and people are gradually moving away from physical shopping. Ashley Lutz, deputy editor of the Business Insider said to ABC, “the years of the fancy department store is over. … This is really just the beginning.”

In Bangladesh, however, the scenario still is quite different. Digital shopping is growing rapidly but is not as big in size as brick-and-mortar businesses. However, it is safe to predict that things are going to be different within the next couple of years.
Smartphone penetration is growing rapidly in the country. Today more that 65 million people use internet and the number is bound to grow further in the coming years as the price of internet and smartphone go further down.

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Ruhul Kader

Co-founder at Future StartUp
Ruhul Kader is a co-founder at Future Startup. He writes about business with a specific concentration on strategy, technology, and society. He can be reached at [email protected]

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