NEW YORK: Retailers are trying to maintain a cheery outlook despite looming pressures on the upcoming holiday season, including worker shortages and supply-chain disruptions, according to a new report.
Three out of four United States retailers said shoppers expect more from stores than they can deliver due to the labour squeeze, according to the survey by workforce-management specialist UKG.
About 85% expect supply-chain disruptions to affect customers.
The results offer a sobering look at what the industry may face during the all-important holiday season as retailers try to recapture the in-store business that has been hurt by the pandemic.
More than half of those surveyed said they’ll be understaffed at least one day a week during the holidays, while nearly 90% expect an employee shortage at least once a month.
Most of the respondents said people simply don’t seem as interested in working retail these days. They also pointed to specific challenges, including low pay and fears of catching Covid-19.
According to earlier news reports, the shortage of people willing to work in stores and warehouses is particularly acute.
The number of unfilled retail jobs spiked from about 750,000 before Covid hit the country to 1.1 million this July, leaving employers racing to staff up for the holiday season, the critical few months in which most chains make a disproportionate share of their annual sales.
It had been also reported that several had already raised wages since the pandemic began, with Walmart boosting the minimum hourly rate at its Sam’s Club from US$11 (RM46) to US$15 (RM62).
But in a labour market this tight, the largest companies are also dangling novel incentives that go well beyond what they have offered in previous years.
Amazon is touting signing bonuses of US$3,000 (RM12,451), Dollar General is offering drivers US$5,000 (RM20,752) starting bonuses, and Macy’s is paying its existing staff up to US$500 (RM2,075) if they refer a friend or family member, news reports have stated.
But the problem isn’t just in attracting new hires – retaining workers can be difficult as well, according to the study, which surveyed 312 store managers, owners and executives between late August and early September.
About 84% of retailers said they expect employees to voluntarily quit at least monthly.
This season’s temporary hires are critical to get through December, but permanent positions are even more important to fill, according to retailers. The staffing issues are having an impact on companies’ finances. More than two-thirds are struggling to meet sales targets due to labor problems. ― Bloomberg