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Billions of dollars and tens of thousands of jobs are at stake. The National Retail Federation estimates that retail supports one in four American jobs, from logistics to health care to finance and technology. Now, the entire retail sector is under massive threat as an over-building glut from the 90's and 00's coupled with a pullback in spending during the recession converges with a shift in consumer behavior towards experiences over things. Plus there's that little thing called the internet. Why drive to a store just to find out it's not on the shelf — even if you called ahead and the sales clerk said it was — when you can shop from home? Or, as is becoming more common, from your phone, anywhere? These "hurricane" forces of "creative destruction" in retail are natural, said Mark Perry, an economics professor at the University of Michigan, part of the "continual innovation and technological progress in a market economy that disrupts and eventually destroys existing industries and firms, and replaces them with new firms providing consumers with new, cheaper and better products, goods and services." This ongoing inventing of the new while eating the old, is "creating lots of turbulence in the retail sector, as consumers shift buying habits from visiting brick-and-mortar stores to buying online," he said. But you don't have to cite Schumpeterian economic theory to Jennifer Richter, a 36-year-old former Macy's employee from Westfield, New Jersey. Richter worked in the physical retail business for 20 years, working up from a sales associate while in high school to flagship store manager to a Macy's regional director for a team of personal shoppers. But in January, she was one of 10,000 Macy's employees laid off during a mass culling as the iconic chain was forced to shutter 100 stores nationwide amid declining sales.
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