HL Insights: Personnel Shortages in The Retail Landscape – Nip The Growing Concern in the Bud
The global labour market is facing unprecedented challenges, with a significant number of jobs projected to remain unfilled due to labour shortages. A new study by Korn Ferry suggests that by 2030, there may be 85 million unfilled jobs globally, with a substantial portion of these vacancies in the retail sector.
While we cannot force a workforce to work for us (try saying that fast five times in a row!), we can all do the best with the tools available to create a work environment where they can thrive. This is the topic of today's HL Insights.
Retail Sector Hit Hard
A 2022 study by PwC Germany sheds light on the severity of personnel shortages. The study found that a significant majority of German companies in retail and consumer goods are experiencing a shortage of skilled workers, with 73% reporting a negative impact on operations. Recruitment challenges are severe, with over 50% of businesses struggling to find qualified personnel and the prospect of 41% of skilled positions in food sales remaining by 2035.
Recruitment challenges are severe, with over 50% of businesses struggling to find qualified personnel
The retail industry is particularly affected by labour shortages. A report by the Retail Trust found that one in five (21%) British retail workers and nearly a third (31%) of people working for the UK’s biggest retailers were planning to quit the sector.
Retailers’ Financial Squeeze and Innovative Responses
Retailers face mounting financial pressures amid labour shortages and rising operational costs. They are also under pressure to deliver inspiring and convenient shopping experiences and to increase the sustainability of their operations to ensure shoppers return to their stores.
The shift towards automation has demonstrated significant benefits including time savings, sales growth, and reduced shrinkage, which directly impact profitability. Shelf automation solutions have proven to be a low-threshold, cost-efficient way to answer to these challenges, with the bonus of little to no maintenance time needed. Moreover, faster product refilling through automation minimises energy usage by reducing the time freezer and chiller doors are open. And when reducing repetitive tasks for store personnel, you allocate time for them to instead focus on more engaging tasks like providing service and building connections with store visitors – increasing customer satisfaction and store loyalty.
Cashier-Less and Unmanned Stores Solutions
The struggle to recruit and retain qualified personnel is expected to intensify in the coming years, further underscoring the importance of solutions like cashier-less or unmanned stores. These innovations rely on advanced technologies such as cameras and shelf-integrated scales to facilitate purchases without human cashiers. However, maintaining well-organised shelves remains a challenge without staff for merchandise display, and for the cameras to pick up product movement correctly in unmanned stores the placement of products on shelf is pivotal.
The struggle to recruit and retain qualified personnel is expected to intensify in the coming years
Shelf automation solutions are particularly suited for cashier-less or unmanned stores, ensuring neatly organised shelves that enhance operational efficiency. These solutions play a critical role in supporting automated retail environments, enabling seamless product availability, and enhancing shopper experiences in an increasingly digitised retail landscape.
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Bloom Where You’re Planted
So, how do you sow to reap? Automated solutions not only optimize retail operations but also empower personnel to deliver exceptional customer care and elevate overall store performance. By going automated, retailers are innovating their service delivery while ensuring operational excellence in a competitive market landscape.
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Sources:
"Fachkräftemangel in Deutschland 2022" conducted by PwC Germany
Head of Retail Space Management at Gray Mackenzie Retail Lebanon
5moTherefore, retailers must appreciate their personnel and support them. Take care of the experienced ones.
"Recruitment challenges are severe, with over 50% of businesses struggling to find qualified personnel and the prospect of 41% of skilled positions in food sales remaining by 2035." Really interesting insights here pulling back the curtain on the wider issues around recruitment in retail. Great stuff! 💡 👀