Labour costs represent a significant expense for most retailers — in some instances, nearly two-thirds of a typical retailer’s budget. Staffing inefficiencies can mean the difference between a profitable retailer, and one that is doomed to fail. At a time when some retailers are struggling and closing, retail CFO’s and their staffs are seeking new ways to enhance performance, add value and trim expenses.
Leading workforce management software and services company Kronos has released a white paper that offers useful insights into ways retailers can increase profitability and customer satisfaction with key strategic changes to their workforce management. Titled ‘The New Retail Solution’, you can download the white paper here.
Workforce management strategies address key retail challenges
What makes this white paper particularly topical is that costs are certainly escalating for retailers in Canada. Rising minimum wages, predictive scheduling (aka fair scheduling) legislation, and increases in leave allocations are adding to other growing operating costs retailers are facing, such as increased rent. Although retail sales in Canada also continue to rise, the added costs have retailers seeking strategies to better manage spending and efficiency, particularly as it pertains to staffing.
Retailers are also seeing unprecedented competition in Canada — last year alone, more than 50 international retailers entered Canada, and 2018 is shaping up as another busy year. Since the Canadian market numbers only about 36 million, retailers will need to find ways to become even more efficient as a way to survive and thrive in the changing retail landscape, which will include new and stronger competitors.
The Kronos white paper also discusses challenges and opportunities retailers face as omnichannel retail takes hold and technology continues to change the future forever. It discusses impacts on retail margins, and how increased productivity can lead to better outcomes.
Download the white paper to learn more about how to gain improved efficiencies that lead to greater profits.
Staples Canada saw significant labour cost savings
More than 1,000 global retailers, from The Co-operative Group to PUMA, Swarovski to Hugo Boss, rely on Kronos for retail workforce management solutions that transform their businesses in ways that measurably improve customer satisfaction while reducing risk and controlling labour costs, all leading to greater profitability.
Closer to home, Staples Canada is one Kronos customer whose workforce management solution integrates data on point-of-sale volume and new inventory to forecast store volume. Managers use this information to determine labour demand when creating schedules. If volume trends change, managers rerun labour demand and adjust schedules to align labour with demand. In year one, labour use was within budget while sales increased, decreasing labour costs as a percentage of sales. Staples Canada also is saving 70,000 hours annually in payroll signoff time and unplanned regular and overtime. Associates use mobile devices to request time off, check schedules and accrual balances, and view a time-off request status, increasing their engagement.
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