Stores Closing Will Reduce Retail Jobs But Job Growth as Aides to Elderly

The Credit Suisse US Store Closure Index shows 2019 is on track to be the biggest store closure year in the 24-year history of the index. Credit Suisse projects that retail store closures will accelerate in 2020.

Credit Suisse is lowering EPS estimates by –3% on average for 2019 and by –5.5% for 2020 for U.S. department stores.

Domestic closures are trending to all-time record highs, led by the Softlines, (aka apparel or textiles), according to Michael Binetti and other Credit Suisse analysts.

There have been 7,600 U.S. store closures announced in 2019 to date, representing the highest number of closures ever at this point in the year.

From the part-time sales associate at a local store on Main Street to an app-developer for a major retailer, the retail industry directly employs 29 million Americans, making it the largest private sector-employer in the economy. These jobs aren’t just behind a cash register. In fact, 45 percent of retail employees do not work in a sales position.

Anyone whose job results in a consumer product – from those who supply the raw materials to factory workers to the truck drivers who deliver goods to stores – counts on retail for their jobs.

With 3.6 million stores drawing on a vast array of suppliers, retail supports 42 million jobs and represents $2.6 trillion of annual GDP in the United States.

Retail is down about 80,000 jobs from the beginning of the year.

The Bureau of Labor Statistics projects major growth in the jobs of personal care aides and home health aides.

Senior Woman In Discussion With Health Visitor At Home

SOURCES- BLS, Credit Suisse
Written By Brian Wang,