The trend isn’t limited to the craft stores and online retailers that have recently been struggling with Amazon’s acquisition of Whole Foods Market and Wal-Mart.
A recent report by Forbes found that the average craft outlet made about $5.3 million last year, but craft outlets were earning about $6.8 million on average.
The industry’s average gross margins, however, fell from 10.6 percent in 2015 to 7.6% last year.
Craft stores are also making less than retailers with bigger retail margins.
Craft outlets have been a big contributor to Walmart’s recent surge in sales.
In the most recent quarter, Walmart earned $14.3 billion from its online sales, a 17.3 percent jump over the previous quarter.
Craft retailers have also had a major impact on the grocery chain.
In 2014, Walmart’s online grocery sales were $4.6 billion, but by 2015 that had jumped to $10.4 billion.
That’s an increase of about 14 percent, which would be a boon to Walmart, which is still a distant third in the grocery business.
The growth in online grocery has also made craft outlets less profitable.
In 2016, craft outlets reported a profit of $3.5 billion, a decline of roughly 12 percent from the previous year.
This year, they have reported a loss of $2.8 billion, which has also fallen from a year ago.
It’s unclear if the loss in online sales will hurt Walmart’s bottom line.
In 2015, Walmart made about 80 cents on the dollar, according to an analysis by the Business Insider blog.
This quarter, the average store made about 76 cents on a dollar, a drop of more than 20 percent.
That would mean the average Walmart store is making about $1,500 less in profit than it did in the previous six quarters.
But there’s still hope that the decline in online shopping will pay off.
According to an analyst with Capital Insight, the drop in online store profits could eventually result in Walmart’s stock price dropping.
He said in an email to Recode that the company has a lot of upside on its current stock price, which could increase the share price.
“We are optimistic about the long-term future of the craft retail industry as a whole,” Capital Insight analyst John Meehan wrote.