How Will the Retail Crisis Impact Trucking?
The trucking industry is linked with the retail market, and changes to one usually affects the other. Retail stores depend heavily on truck drivers, and most freight carriers work with retailers in some way.
The fact that retail stores seem to be experiencing more problems is a major concern for those in and affiliated with this market. With more stores experiencing losses and liquidating debt by downsizing, the amount of business truckers get from retailers could be decreasing more in the future.
Sears Holding recently announced it would be closing down more stores. With 35 more Kmart locations and 8 Sears locations to cease operations soon, the total amount of store closures for the chain in 2017 now grows to over 300.
The company’s management has stated the decisions were not made lightly, but rather on data as Sears Holding still faces the problems many retailers do in an age where ecommerce is quickly becoming the default shopping method.
While retailers are still plentiful in the US, a spike in online shopping has correlated with the decline in retail profits. Sears Holding isn’t the only corporation that has seen a drop. Not even the biggest and most successful companies in the country are immune to losing some footing as the convenience of digital shopping proves very alluring for consumers.
Online shopping helps people save time and money. But what does this mean for trucking? Will drivers be disadvantaged by this, since retail locations serve as a major source of business?
While ecommerce has had an impact on the retail industry, this is one of the few areas where the effects don’t carry over into the freight industry. This is because many trucking companies have already begun making waves in the online delivery market.
For deliveries that can’t be handled with parcel services, trucking companies are a fitting solution. And though the fragmented industry makes things a bit difficult now, the decentralized turn the industry is taking could bode well for this business model moving forward.
As the retail crisis deepens, trucking companies may feel some effects. However, this crisis will not be one which will present major problems for the industry any time soon.