India Retail News

Atlanta Retail Consulting

With continuous pressure on retailers to improve their financial performance, it is natural that they will aggressively look for ways to control operating costs. Store labor expense, typically second only to the actual cost of inventory, is a natural target for additional scrutiny. CEOs continually challenge their organization to squeeze out excess labor and find ways to operate more efficiently. Less-than-optimal store labor effectiveness can result from this process, like that depicted in the chart below, if the wrong approach is utilized. This unbalanced scenario is more typical than the industry wants to admit and both labor cost and customer service are often compromised.