It seems as though every month another retail chain announces select store closures or a bankruptcy filing. Retailers have come to realize that they have too many outposts across the country as fewer and fewer Americans head to shopping malls for their clothes, electronics, and appliances. Payless Shoe Stores, BCBG, Sears, Kmart and more are closing stores.
After shuttering dozens of stores in 2016, Macy’s kicked-off 2017 by announcing plans to close 68 more of its locations. Jeans titan Abercrombie & Fitch is allowing many of its leases to expire and has announced that this year it will close 60 brick-and-mortar stores.
However, according to the recent Glassdoor Local Pay Reports, retail jobs have shown strong wage growth in April and hiring is up. Roles like cashier saw an increase of 5.0 percent and a median base pay of $27,582, and store managers which were up 6.6 percent to $48,848.
Huh?! How is that possible?
“Traditional department store retail jobs are on the decline, as Americans are shifting away from ‘commodity buying’ to ‘experience buying’ that happens at smaller retailers and boutiques. Consumers are spending their dollars at smaller retailers that offer in-store experts and a pleasant shopping experience, and there is a need for these retail positions,” said Dr. Andrew Chamberlain, Glassdoor’s Chief Economist. “At the national level, we’re seeing strong pay gains for retail store managers and cashiers as employers struggle to fill these front-line roles.”
This explains the approximately 860,000 job postings in retail listed on Glassdoor across the U.S. Some of these jobs are in online retail, and the wage growth trend continues for warehouse associates, whose base pay was up 6.3 percent YOY in April to $39,920.
Therefore, despite uncertainty for large retail chains, employees with experience and passion for retail don’t need to panic. As we say goodbye to American Apparel, The Limited and Wet Seal, we say hello to online retail hiring and continue to support mom ‘n’ pop shops.
Glassdoor Local Pay Reports provide a real-time view of wage growth in metro areas across the U.S. based on millions of salaries shared on Glassdoor. Leveraging the same technology and data science behind Glassdoor’s Know Your Worth product, the Local Pay Reports apply a proprietary machine learning algorithm to estimate median base pay by job title, industry and employer size. Full methodology found here, along with a list of Frequently Asked Questions.