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Amazon boosts holiday hiring, signaling shift in retail

As trade group expects rise in online spending, companies join Seattle firm in increasing warehouse workforce

By MICHELLE CHAPMAN and ANNE D’INNOCENZIO, Associated Press
Published: October 20, 2015, 4:57pm

NEW YORK — Amazon reports that it plans to hire 100,000 people for the holidays, a 25 percent jump from last year, signaling a shift in the way Americans shop.

The online retailer said Tuesday that it will hire across the country for jobs in its fulfillment and sorting facilities. The Seattle company recently hired more than 25,000 people for regular, full-time positions. It hired 80,000 workers last year for the holidays.

Amazon stands out as most retailers’ holiday hiring is expected to remain largely unchanged, according to a report from Challenger, Gray & Christmas.

“It used to be that the bulk of holiday hires would be in customer-facing positions on the sales floor and behind the cash register, said CEO John Challenger. “These extra workers would also help pick up the slack in the back room, helping to receive and stock increased deliveries. Now, as more and more shopping is completed online, the holiday hiring is shifting away from (physical) stores and into the warehouses.”

This hiring picture is emerging during a potentially dicey spending period. The Labor Department reported earlier this month a sharp slowdown in hiring in September. Average hourly wages have risen a tepid 2.2 percent in the past year. Meek wages and weak hiring may take a toll on consumer spending.

The National Retail Federation predicted earlier this month that holiday spending, including online, will rise 3.7 percent to $630.5 billion, slower than the 4.1 percent increase in November and December 2014. The NRF reports it expects online spending to increase 6 percent to 8 percent to $105 billion. Online sales grew 5.8 percent in last year’s holiday season.

Wal-Mart is hiring 60,000 holiday employees, Target about 70,000 and Macy’s 85,000, all about flat compared with last year. Kohl’s is hiring about 2,000 people, a 2 percent increase. J.C. Penney and Toys R Us are hiring fewer people.

Many traditional retailers playing catchup with Amazon in the online shopping game — including Wal-Mart, Macy’s and Target — are hiring at their warehouses and have been adding large e-commerce centers to speed order delivery.

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