Nonetheless,physical stores still account for 95 percent of all retail sales, though this percent may drop to 80 percent in the next tenyears (Groenfeldt, 2012). This expected decrease is due to growth of e-commerce. By the end of 2012, global ecommercereached $1 trillion. The most prolific online retailer was Amazon, which has pushed into the digital televisionmarket recently. Applications of new IT have boosted U.S. labor productivity. From 1974 to 1990, labor productivity grew by1.4 percent per year. Between 1991 and 1995, annual productivity growth increased slightly, to 1.5 percentper year.
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From 1996 to 2005, however, as companies invested heavily in IT equipment, software, andservices, annual productivity growth, measured by non-farm output per hour, soared from 1.0 percent in2000 to 5.5 percent in 2008 (Productivity and Costs, First Quarter 2011, Revised. ). Since 2008, non-farmbusinesses have witnessed declines and increases depending on the quarter. In the first quarter of 2013,there was a 0.7 percent increase (Productivity and Costs, First Quarter 2013, Preliminary).Most economists attribute the increase in annual productivity growth to the pairing of labor with new kinds of IT across abroad swath of the U.S. economy
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