Talking Retail Grocery and product news for independent retailers
Christmas 2022 is expected to be a difficult time for grocers. Retail sales in November were already much lower than usual, signalling that the cascading effects of a recession have put additional pressure on retailers at the most crucial time of year.
Unfortunately for grocery businesses, poor sales revenues aren’t the only worry for retail leaders. According to Fourth’s latest data, almost a quarter of grocery managers (23%) still consider talent shortages a major worry for their business in the coming year. They are right to be worried, as on the other side of the aisle, more than half of employees (56%) feel overworked and underappreciated.
Without grocery employees available to stock shelves and generally enhance the shopping experience, our Christmas dinners may be hanging in the balance. So, what can grocery leaders do to meet the staffing crisis head-on?
The intersection of the cost of living crisis and the festive employee churn
Consumer habits are changing quickly. In fact, more than half of retailers (57%) say they’ve seen consumer behaviour change in the last three months, in line with the ongoing increase in living costs. So, in response to lowered spending and when navigating the cost of living crisis, it may seem logical to reduce costs by cutting headcount at all levels. However, grocery employers run the risk of leaving remaining employees under increased pressure and exacerbating the impacts of talent shortages for their business in the long term.
Simply recruiting more staff next year to fill any shortfall won’t prove viable in the long-term, as it is the more experienced staff that can provide excellent customer service needed to navigate trickier retail experiences. They are also essential in upskilling newer members of the workforce that would need to be recruited to service the natural employee churn seen around the festive period.
Technology as a workforce solution
The recent evolution of Retail technology throughout the pandemic has demonstrated the positive impact it can have to help expedite workforce management, as well as help cut costs for businesses.
For store managers, our data suggests that implementing digital and tech-based products and tools such as QR codes (36%) and warehouse automation (30%) would smooth the daily functionality, utilising the workforce in new ways. Employees benefit from a slightly relaxed workload which means, with the support of technology, they can redirect any time gained towards training their team and enhancing the shopping experience. With this in mind, it’s no surprise that 35% of retail employees are particularly welcoming Click & Collect services that can save them a lot of time dealing with labour-intensive tasks.
The power of retail technology doesn’t stop there, workforce management solutions are also an essential ingredient. Employees are calling out for instant access to payslips (35%), real-time communication (25%), and digital scheduling enhancements (20%), which will reduce stress and make their day-to-day role easier to manage. At a time when the cost of living crisis is impacting customers, businesses, but also their employees, it’s important that workforces are supported. Only then will they be able to provide the services customers need.
The missing ingredients
It’s no secret that an engaged, supported, and efficient workforce is the foundation of a successful business. So with the cost of living crisis now eating into festive success, looking at how to enhance the grocery experience for both employees and their customers into 2023 must be grocers’ top priority. Grocers should consider the evolving impacts of the following ‘missing ingredients’ to find success:
- Navigating consumer spending: Expect shoppers’ spending habits to fluctuate as the cost of living crisis heightens
- Boosting staff engagement: Consider how the ongoing challenges, from the supply chain to price increases, will impact staff morale to avoid high turnover rates
- Identifying the right tech for your business: Find the balance between technology, automation, and customer experience
