Retail Automation: Stranded Workers? Opportunities and risks for labor automation

The analysis indicates that automation is set to alter the retail industry’s labor profile. If companies migrate towards a high-touch, experience-based strategy, then it is possible workers will receive improved training and higher wages, and there will be fewer layoffs. If companies adopt a heavily convenience-oriented strategy, more tasks will be automated and less labor required. To date, companies’ discussions around implementing technology suggest that technology is aimed at complementing labor. However, should structural price and cost issues persist, technology may be viewed as a potential substitute for labor.
The most likely outcome is a mix of experience and convenience strategies, though this could still result in material layoffs in the retail sector. Because retail represents approximately 10% of the total US labor force, any systematic deployment of automation is likely to reduce the number of retail jobs by a figure in the millions.