Millions of jobs will be lost because of the rise of a company that is on track to become the first firm with a $1 trillion market value. That’s the assessment of New York University Professor Scott Galloway, founder of the business intelligence firm L2, in an examination of the rise of Amazon.
Recode quotes Galloway saying, on an episode of the podcast Recode Decode, “The majority of retailers will face this triple threat of stagnant wages in the middle class, a transition away from typical retail goods to more experiences and Amazon/fast fashion. And also the over-storing of America: We could lose a third of our retail space and probably not miss it.”
Galloway says the winners will be consumers and Amazon shareholders. “But the losers are the retail ecosystem, which includes 11 million cashiers, which includes the 40 million households that have a share of Gap or Walmart,” he says. “You’re effectively seeing this giant sucking sound out of the entire retail ecosystem into a small number of players.”
Recode adds: “On the new podcast, Galloway predicted that Amazon could multiply what Prime households spend today, from $1,300 a year to $7,000 or more, and that it would beat Apple and Google to become the first company with a $1 trillion market cap.”
Click on the link above to Recode to listen to the podcast.