The labor shortage will worsen

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The labor crisis highlighted by the Ministry of Labor poses a huge problem for the retail sector. More worryingly, he points to a labor shortage that will worsen over the next major holiday season. Currently, the Ministry of Labor estimates that there are approximately 965,000 jobs open in the retail sector.

Traders are worried and are now taking action to boost their work team. Here is a recap of the reaction of some stores; you will find that a variety of strategies are going on in all types of retailers.

Kohl’s announced that current hourly associates of stores, distribution centers and e-commerce distribution centers will be eligible for a bonus of $ 100 to $ 400 if they stay and work for Kohl’s during the holiday season. This is to counter the current tendency of associates to quit their job in favor of another job. Michelle Gass, CEO of Kohl’s, said: “During the busiest shopping season of the year, these associates come to our facilities and handle incredible requests and we want to recognize them for their contribution to come. Holidays are always when Kohl’s is at its best, and we are so grateful to all of our associates who provide an incredible experience to our millions of customers across the country, both in our stores and through our digital platform.

DSW, the discount shoe chain is testing self-service in response to labor shortages. It started during the pandemic when DSW piloted automatic checkouts in its stores in response to hiring challenges, according to an email from the company to CNN.

According to Chain Store Age, many retail companies have increased their salaries and benefits and are offering sign-up bonuses. In reality, Denny’s even offers a free breakfast for applicants who apply locally for the position.

Remarkable is the fact that Target stores said she hadn’t had any difficulties hiring, but the company stressed that it raised the minimum wage last year to $ 15.00 and expanded its health benefits for employees. Macy’s, on the other hand, indicated that it had a number of open positions in its stores and distribution centers.

the 7 eleven The National Franchise Coalition, representing about 7,200 US sites, has warned that labor shortages make a 24-hour operation impossible. Due to the higher operating costs, franchisees may be faced with a very serious situation.

The facts are clear; retailers always need more help during the critical Christmas sales period, and this year is no exception. Even with low store traffic levels, they must fill open positions as this is the year shoppers will try to avoid long lines and unnecessary exposure to other customers. This means the store will need to train staff and start training associates now in order to have a trained team ready to serve the crowds.

It’s easy to suggest increasing sales rates – like Target did – but it does impact the profitable performance of businesses. Adding self-service equipment will help, but could lead to a greater shortage of goods. Providing additional benefits is costly. All of this points to higher operating costs for stores. However, we are in a time of crisis – the shortage of helpful associates is severe. I believe the industry faces the challenge of keeping service at an acceptable level. Personal contact is so important because it really defines the character of each store and can be what sets the store experience apart – essential in enticing customers to walk into a store.

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