Talking Retail Grocery and product news for independent retailers
With schools back full time and workers going into the office more regularly, shopping patterns were stabilising and demand remained up on pre-pandemic levels. But the spread of the Omicron variant and renewed restrictions across the UK have thrown all that into doubt. The only constant now appears to be instability.
Clearly, supply chain issues persist, and with added checks on goods coming into the UK from the EU set to kick in from January, the likelihood is that things will only get worse.
But the big issue next year is likely to be staff shortages, as highlighted by industry leaders in our Big Story (see page 4) and also by speakers at the recent Retail’s Best conference in Birmingham.
With the big supermarkets and other large employers digging deeper and deeper to up basic rates of pay, competition for workers at the lower end of the wage scale is increasing all the time. Retailers report a steady erosion of staff loyalty, with many willing to switch employment for an additional 10p or 20p an hour.
So what’s the solution? Technology may provide some of the answers, with some stores looking to bring in more self-checkouts and cashless solutions.
But for many customers of independent shops, it’s the personal interaction with staff and store owners that attracts them in the first place, so retailers will need to be careful.
Better training is another factor. No longer will it be enough to offer the odd NVQ in customer service; employees will expect to see some real prospect of career development and retailers will have to become better at communicating their own passion for this fascinating and stimulating industry.
Ultimately, though, pay rates are going to be key. And that’s highly likely to mean putting up prices in-store at a time when many consumers will be starting to feel the pinch of the post-pandemic hangover. It’s going to be a fine line to tread.
By David Shrimpton, Editor
