The busiest retail season of them all, the holidays, is just\naround the corner and this year, the trends impacting suppliers, consumers, and\nretailers alike are wild. For starters, there\u2019s a massive labor shortage for\nretail workers, which impacts everything from price to in-store execution.\nThen, there\u2019s rising inflation squeezing consumers\u2019 wallets. How shoppers and\nretailers are dealing has massive implications for suppliers\u2019 retail strategies\nto make sure that this year\u2019s sales are a success and goals are met. <\/p>\n\n\n\n
Keep reading to learn more about the trends and what\nsuppliers can do to have a thriving season.<\/p>\n\n\n\n
This is the biggie. It\u2019s a tight labor market for retail workers and that doesn\u2019t seem to be slowing down anytime soon, especially not in time for the holiday rush. In fact, 74% of retail executives<\/a> report that this year their biggest pain is at the store level, with massive shortages in customer-facing positions.<\/p>\n\n\n\n This macro trend will have major implications for suppliers,\ndepending on how their retail partners choose to cope. Before we dive into a\nfew ways those reactions could play out, and their implications, the major\ntakeaway from this trend is that suppliers will need to have a plan to make\nsure their in-store inventory is taken care of<\/strong>. With fewer retail workers\non the floor, those that are there will be busier than ever.<\/p>\n\n\n\n Speaking of hiring shortages, one of the ways many retailers\nare coping is by embracing volume\nrecruitment<\/a>. This looks like eliminating as many steps in the hiring\njourney as possible to hopefully speed up the process and get more people in\nthe door. <\/p>\n\n\n\n However, this comes with its own challenges. While there may\nbe more people in the door, it doesn\u2019t mean they\u2019re quality candidates who will\nhelp suppliers\u2019 inventory sell. It also doesn\u2019t mean that it\u2019s solving a high\nemployee churn rate.<\/p>\n\n\n\n Retailers are sure to sort this out over the long run as\nthey hone in on their needs and what qualities make for long-term candidates\nbut that doesn\u2019t solve the immediate challenges facing retailers and suppliers\nthis holiday season. Suppliers still need a way to make sure their inventory\nis managed in-store by highly trained professionals<\/strong>. <\/p>\n\n\n\n Compounding the hiring challenge is that there\u2019s not just a shortage of candidates, there\u2019s a shortage of recruiters \u2013 nearly 7 times the number of vacancies that there were in 2020<\/a>. This means that the whole talent pipeline is being squeezed.<\/p>\n\n\n\n But what\u2019s driving the trend?<\/p>\n\n\n\n The pandemic forever shifted how people view work. And in a\nmore competitive labor market, $15\nan hour isn\u2019t enough to attract and retain top talent<\/a>. But it\u2019s not just\npay. Flexibility for working parents is crucial and many parents have been\nforced to find creative solutions that allow them to structure their days\naround their children, especially when schools are closing and illness abounds.\nFinally, the digital age is well underway and retailers\nare shifting to internet-based operating models<\/a> that don\u2019t depend on the\nsame physical labor they used to and workers are taking note and planning for\ntheir own long-term job security.<\/p>\n\n\n\n To complicate matters for suppliers, inflation is rising,\nwhich means consumers are looking for deals. Right now, inflation\nis the worst it\u2019s been for more than 40 years<\/a>.<\/p>\n\n\n\n When inflation rises, wallets tighten and customers are on\nthe lookout to save a few bucks. This means competition in-store for eyeballs\nand dollars is going to intensify. <\/p>\n\n\n\n Suppliers can embrace strategies like <\/strong>instant\nredeemable coupons<\/strong><\/a> (IRCs) <\/strong>to catch shoppers\u2019 attention and\nincentivize them to make a purchase with 90% of consumers more likely to\npurchase a product if they see an opportunity to instantly save.<\/p>\n\n\n\n To capitalize on deals and maximize savings, 42%\nof shoppers will start their holiday shopping earlier than ever<\/a>. We\u2019ve\nalready seen back-to-school shopping start early this year and Amazon Prime day\nand its competition from other retailers was one of the biggest ever.<\/p>\n\n\n\n What this means for suppliers is that they need to be\nahead of the game and start their holiday discounts and sales ASAP.<\/strong><\/p>\n\n\n\n With pressures stacking up from all sides, what\u2019s a retail\nsupplier to do? Pay extra attention to their in-store inventory. Here are the\nthree priorities to focus on this season:<\/p>\n\n\n\n Merchandising partners, like RMS, can help ensure your products make it to store shelves and those costly endcaps and displays are set and stand out. Merchandising companies can also help get late-arriving product out to the floor after missing a reset. Proactive brands who take it upon themselves to step in to help solve the current labor constraints will benefit with fuller shelves, good-looking displays, and most importantly a win with customers.<\/p>\n\n\n\n Interested in maximizing your sales this holiday season?\nGive us a call today to see how we can help.<\/p>\n\n\n\nTrend 2: Volume Recruitment<\/h2>\n\n\n\n
Trend 3: Shortage of Candidates and Recruiters\nis Here to Stay<\/h2>\n\n\n\n
Trend 4: Inflation<\/h2>\n\n\n\n
Trend 5 – Early Holiday Shopping<\/h2>\n\n\n\n
Solution: What Retail Suppliers Can Do to\nCounter Pressures<\/h2>\n\n\n\n
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