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Numerous industries are benefiting from the effects of the pandemic. Above all, online trading. image: shutterstock
Online commerce as a work engine
While large numbers of businesses are suffering from the pandemic and staffing is being cut, online business is booming. Hundreds of jobs will be created.
Short-term work here, downsizing there, mass layoffs there. The negative headlines have rocked the media like a staccato in recent weeks. Elevator builder Schindler is cutting 200 jobs, watch retailer Bucherer is cutting the number of Swiss jobs by 220, airline catering company Gategroup is losing 350 jobs and tour operator Hotelplan is laying off 170 employees.
The list could be expanded on a few more lines. But this selection already shows that the corona pandemic is putting the Swiss job market to a stress test. 151,111 people were registered as unemployed at a regional employment center in August. Since February, before the outbreak of the crown crisis, the unemployment rate in Switzerland has risen from 2.5 to 3.3 percent.
But there is also the other side. Numerous industries are benefiting from the effects of the pandemic. Above all, online trading. The crown crisis was a true accelerator of Swiss e-commerce. Distributors posted rapidly growing sales figures. Online orders for most product groups increased at least slightly, mostly strongly.
Digitec Galaxus adds another 250 employees. Photo: trapezoidal
With positive consequences: Online retailer Digitec Galaxus hired around 300 logistics employees in March and April due to high order volumes. This week, the Migros subsidiary announced that the workforce will be increased by another 250 employees, 120 of these positions are already filled. The online retailer wants to be prepared for Black Friday, Cyber Monday, and the holiday business in particular.
Brack targets billions in sales
Even the competition never sleeps. Online retailer Brack, based in Mägenwil AG and Willisau LU, has expanded significantly this year. Since the beginning of the year, the company has created 100 new jobs. This thanks to a jump in sales. Brack is on track to “significantly” exceed the 2019 annual turnover (811 million francs). Will the company already break the 1 billion Swiss franc sales mark this year?
Fust was also able to grow in the electronics sector. The sales figures evolved “well above the average”. The company, which has around 1,900 employees, has created 30 new jobs since the beginning of the year. Ex Libris, Microspot and Interdiscount have also created jobs
At Migros, the main growth drivers were Leshop and Digitec Galaxus. These areas are constantly expanding. Online commerce at Migros grew particularly strongly in the non-food segment. “We are seeing a tenfold increase in orders,” says a spokeswoman. Coop provides similarly scant information on the booming business. Coop.ch has created new jobs. In the areas of transport and logistics, the number of employees increased by around a fifth.
Call center collapses due to overload
Schenkon LU-based mail order company Lehner has also seen strong growth in the current crown year. In the first half of the year, sales increased by 45 percent; In the second quarter alone there was an increase in sales of 83 percent. The head of the company, Thomas Meier, illustrates the growth with some figures: In the period from January to August, Lehner was able to acquire 118,000 new customers; in the previous year there were 30,000 in this period. “Our call center is designed for 1,000 phone calls per day. However, at peak times we had up to 6,300 telephone attempts. That led to the collapse of our headquarters. “
The bottom line is that Lehner has created 39 new jobs since the beginning of the year. This is especially true in the areas of commission, packaging, and returns. Meier also expects growth in 2021. The bedding market leader is building a new high-shelf warehouse in Schenkon.
Fleurop increases sales by 128 percent
Not only was bedding in demand, there was also a demand for flowers. The Fleurop online florist was very popular in spring. Although flower shops and garden centers were closed, Fleurop was able to boost sales.
According to Jörg Beer, director of Fleruop Switzerland, during the close of March 17 to May 10, sales increased 128 percent compared to the previous year. To cushion the extra work in shipping logistics and customer service, 20 temporary workers were hired. The florist closed the first half of the year with a 46 percent increase in sales.
Besides flowers, a lot of coffee was also drunk. Although Nespresso lost sales in its coffee boutiques, thanks to the online channel it registered a percentage increase in sales in the single digits in the first half of the year. In July, Nespresso announced that it would invest 160 million francs in the Romont FR production site. Up to 300 new jobs will be created there over the next few years.
Zur Rose has also grown. The mail-order drug company was able to increase sales by 5 percent to 810 million francs in the first half of the year. The company has had 12 new full-time positions since the beginning of the year.
Amorana also benefited from the online boom. The online sex shop managed to double its sales in the first half. A total of eight new positions have been added to the 34-person team since the beginning of the year. Several posts are still being advertised. According to co-founder Alan Frei, the company should create around 40 new jobs by the end of 2021.
Credit Suisse estimates that online retail will grow 30 percent this year. The big bank estimates the turnover of all Swiss online stores at 13,000 million francs. Does the growth continue unabated? Thomas Lang from Carpathia consultancy awaits you.
“The year 2020 is two to three years ahead of development,” the e-commerce expert writes on his blog. He assumes that online commerce will continue to grow at a significantly higher rate; the only thing that is not clear is whether the growth will be linear or exponential.
