Inflation - the big, bad wolf of the consumer retail world. As we kick off 2024, retailers are facing a web of challenges brought on by inflation. And why does it feel like inflation is affecting retailers now more than ever? Because inflation is showing up in retailers’ financial statements due to a confluence of factors:Inflation - the big, bad wolf of the consumer retail world. As we kick off 2024, stores are facing a web of retail challenges brought on by inflation. And why does it feel like inflation is affecting retailers now more than ever? Because inflation is showing up in retailers’ financial statements due to a confluence of factors:
How can you counter retail inflation and differentiate from other retailers running into the same problems you are?
The ever-growing cost of hiring, training, and retaining staff is only magnified in an inflationary economic environment. There’s no ‘one-size-fits-all’ solution to this problem as it varies in complexity and urgency across different retailers. But there are a few things that retailers of all shapes and sizes can take advantage of.
1. Optimize Recruitment Strategies: 68% of store associates are at stores for 2 years or less, with half of that under a year (Zippia). What’s the difference between the 32% that stay at stores 2 years or longer and the 33% that are at a store less than a year? The answer to that question lies in your data, and by leveraging it, you can build a hiring strategy that increases the likelihood of hiring store associates who will be there longer term.
Let’s take a look at the comparison between 3 stores with different average associate retentions and how that impacts productive months (assuming a 3-month training ramp to max productivity) and total recruitment + raining costs (~$2500/associate) in a 2-year span assuming each store employs 5 associates.
See the impact that store associate retention can have on your business? Now imagine multiplying that across your entire brick-and-mortar base.
2. Digitize Training & Enablement: Every company has technology in their stores. Not every company has a “digital strategy” incorporated into employee enablement tied to their company goals. Shift your mindset from “enabling technology” to “enabling people with technology,” and you’ll begin to see a difference in insights you have available for strategic decision-making down to data at the floor level empowering your people.
3. Foster a Culture of Growth and Recognition: Cultivating a workplace culture that values employee growth and sets a foundation for employee career development will set you apart from other retailers. This is really tough to do at scale, though, and takes buy-in and support from upper management. But if done correctly, it will set a foundation of skilled, loyal, and motivated employees on your store floors.
Any of the above look unfamiliar? Or perhaps you’re thinking, “Hmm, well, we kinda do this, but this is definitely something we could do better at.” If you are interested in learning more about ReStore for Retail and how our Tech-enabled solutions can help your organization, please do not hesitate to reach out to us.