The Retail sector is in the throes of a revolution. Recent research shows that over 10 percent of shopping is now done online. The rapid rise of online shopping and e-commerce is forcing some of the biggest names in the industry to shutter their doors and forcing those that remain to entirely reconfigure their businesses for the digital age.

So, what does this all mean? Well, for one thing, the Retail Revolution is changing the way consumers shop, notably by pushing many shopping malls into decline. Most major American malls today are structured with many smaller stores clustered around a few major department stores. But changes in retail have meant that many of these department stores are taking a hit. In fact, Credit Suisse recently reported that well over 8,000 stores with 147 square meters of retail space or more could close down in 2017. That’s more stores than were closed in either the financial crisis or the dotcom bust. With major department stores in these malls falling, foot traffic is also falling. Business is suffering and tenants are moving out, leaving malls abandoned.

The retail revolution will also have far-reaching implications when it comes to employment. Retailers are major employers in the US, particularly for more vulnerable groups like the young, the elderly, and the disabled. Retail employment continues to decline in spite of an overall robust job market, in part because e-commerce simply requires less labor and therefore fewer people than traditional brick-and-mortar retail. For example, fewer cashiers and salespeople are needed, and as a result, the number of people required to generate the same amount of sales is considerably fewer when a higher proportion of shopping is done online.

While the Retail Sector is without a doubt changing, it is important to note that it isn’t going to disappear altogether anytime soon. And there are encouraging signs. A good chunk of traditional retailers – including giants like Walmart and Best Buy – have been able to develop a strong online presence and are starting to sow the rewards of e-commerce. But the retail sector of the future will certainly look differently than the retail sector of the past.

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