USA’s two most prominent store chains, JC Penney and Macy’s have announced closing of their several stores. Thousands of jobs will be lost as a result. Both the stores like many others have been hit by the success of online shopping.
This is not the first time the two have announced closing of stores. A year before, JC Penney closed down its 33 stores, which resulted in 2,000 job loss. By April it aims to close down 40 of its 1060 stores, which will result in the loss of 2250 jobs. Macy’s portrays a similar picture with its decision to cut down 14 of its 790 stores, which will see 1300 jobs loss. In the year 2014, Macy’s cut 2,500 jobs and shut down five stores.
The Gloomy Situation – Not a New Phenomenon
JC Penney and Macy’s are not the only big companies which have faced financial problems. In the last few years, several big companies around the world have shut down their stores and cut down thousands of jobs. The reasons are very similar for all the companies – mounting loss on international level. This has prompted companies to limit their business ventures as well as slim down the work force to reduce their overall costs.
Silver Lining amidst the Crises
Beyond all the hype about job losses and shut downs the fact that online stores are becoming a huge success could open a new opportunity for the stores like JC Penney and Macy’s. The reason people now preferring to buy stuff online is that it’s more convenient and cost effective. With the technology, people now have the freedom to browse online stores anytime, anywhere they want. Add discounts, special offers, cash-on-delivery and free-home-delivery to it and physical stores can’t beat online stores. There should be no surprise as to why JC Penney and Macy’s have lost a large chunk of their customers to online stores. The boom in e-commerce has enabled several companies to sell their products without setting up an office or store. The best examples of successful online stores are the Amazon and the eBay.
There is hardly any business which doesn’t have an online presence. With the technology people can now order things online without moving from their place. To survive the competition the stores like JC Penney and Macy’s can take their business online.
Telecommuting is the key
As for the job losses, online stores still need to be managed by real people. Instead of cutting down jobs, the employees can be allowed to telecommute and work online from their homes. Several customer care service works are being carried out from home or by telecommuting. With the programme like the Goemployed people can now easily find online jobs. Business with overseas branches can also hire overseas telecommuting employees. As for cutting corporate cost, firms don’t need to lay off their employees when they can work from home. When employees work from home the associate cost of running an office or store automatically comes down.
Online stores and e-commerce have become a huge phenomenon in recent years and businesses now sell their products and services online. The opening up of online stores and shops will unlock new window of opportunities of employment. Telecommuting is one thing that can save firms and employees from losses.