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Average hourly earnings for retail employees, including managers, has inched up just 1.1 percent over the past year, compared with a 2.7 percent average increase for all U.S. workers. The struggles of many traditional retailers can be traced most of all to Amazon and other online retailers. Amazon's Prime membership program, costing $99 a year, has been a juggernaut, with services like streaming music and video that have created fierce loyalty. Analysts say Amazon Prime members disproportionately buy more and spend more. In the process, Amazon has redefined the standards for its rival retailers. They now feel more pressure to limit costs while expanding services and offers for shoppers, from free shipping to non-stop discounting, which take a toll on profit margins. It's hardly just Amazon. One online-only retailer, Chewy.com, sells an array of pet supplies beyond what's generally available in physical stores, including high-end organic pet food. The fast-growing company plans to add about 3,200 jobs this year, raising its head count to 6,900. Though traditional retailers are expanding their own online presences, those operations require far fewer workers.
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German politicians have almost unanimously underlined that the UK cannot have unfettered access to the single market unless it allows for the free movement of EU citizens. In her letter to the EU last week, Theresa May said the UK would "not seek membership of the single market" in the upcoming negotiations. 'Worst result' But Mr Ohoven emphasised that the close economic ties between the UK and the German Mittelstand - which makes up the bulk of the country's economy - meant a Brexit deal without single market access would be damaging to both countries. "Germany exported goods worth 89bn euros to the UK alone in 2015, almost half of it was exported by 150,000 German SMEs," he said, adding that many more companies traded indirectly with the British market, as well as relying on UK research and development. "In the end, a soft Brexit should be reached. It is important that the UK stays in the single market, or that the UK joins an agreement similar to the the EFTA (European Free Trade Association), similar to Norway or Iceland. "The worst result would be if the EU and the UK did not reach an agreement in time," he added. Image copyright BVMW That sentiment was echoed by Dirk Rothweiler, the chief executive of First Sensor, a Mittelstand firm that makes almost 7m euros a year from sales to the UK market. Dr Rothweiler, whose company in the east of Berlin provides highly specialised sensor chips for products such as premature baby incubators and autonomous vehicles, said pragmatism was "what the industry was interested in". "It would be very desirable not to have trade barriers, and if so to have the least possible amount of trade barriers in both directions" 'No winners' The BVMW's Mario Ohoven emphasised that all four freedoms of the EU - the free movement of goods, capital, services and people - were important to the businesses he represents, at which almost 6% of employees are from elsewhere in the EU.
e-commerce business and founder of Jet.com added: It costs us less to ship to stores, so our customers should share in those savings. But it also gives Walmart more ammo in its price war with . Indeed, one of Lores mandates since become CEO of Walmart.com last year after selling Jet.com to the company has been to equip Walmart.com with tools to beat all rivals, even Amazon , on price. Recode reported last month that Walmart had gathered many suppliers at a summit this winter, telling them it wanted the lowest prices on 80% of items sold. Though still a small player, Jet.com has shaken up the world of e-commerce thanks to a pioneering discounting approach it calls the Smart Cart, who provides shoppers with additional incentives the more they order. Jet.com sweetens the pot for example by giving a discount if shoppers forfeit the right to return an item, or pay with a debit card instead of a credit card. It was exactly that kind of novel approach, and the tech that enables it, that led Walmart to buy Jet.com last summer to rejuvenate its e-commerce business. The acquisition of Jet, along with an overhaul of Walmarts marketplaces has kickstarted its e-commerce growth online sales rose 29% during the holiday quarter . And with acquisitions of online stores like ShoeBuy, Modcloth and Moosejaw, Walmart is reaching for a broader clientele. But Walmart still has a long way to go, hence the focus on blending stores and e-commerce. The use of 4,000 physical stores is becoming a hallmark of Walmarts strategy against Amazon, locations that can help it speed up delivery and save on shipping costs and protect profit margins at a time a price war is pressuring them.
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