In many countries, local retailers close their shops because online platforms outcompete them. The main problem this causes is unemployment and the most viable solution is the support from the government.
The principal issue, associated with the closing of local shops, is that the owners of these shops lose their jobs. Usually, people who work there have no professional qualifications, and being a retailer is the only source of income for them. If they are forced to close their shops, the unemployment rates will rise, because they cannot change their occupation. For example, corporations like “Ozon” and “Wildberries” are expanding and opening multiple delivery points even in a single city, attracting the customers flow to them. Therefore, the local shops workers are left without consumers and go bankrupt
To tackle this problem, the government should launch a campaign to help people, who were exposed to job loss. A program could support these businesspeople financially, or assist them in finding a new niche. For instance, in 2020 there was the entrepreneurs supporting initiative, organized by the authorities of the Republic of Kazakhstan, that gave them the initial investment to start a new business. Of course, they had to return that money within a period of time. This resulted in a decrease of the unemployment ratings by 10%
In conclusion, the replacement of the traditional shops with the online shopping websites is a major issue that can cause many people to lose their sources of money, however it can be addressed through governmental control of the situation.
