JULY- SEPT 2023Retail Business Review8In My OpinionUndoubtedly, the recent pandemic has configured a new world for all of us and the retail industry isn't an exception. After going through a series of lockdowns, the current context still represents a big challenge for this sector in many senses. One of them, perhaps the most important for operations management, is labour.Chart 1: Labour Cost in the Retail IndustryCost of labour input (ULC) per unit of output, inflation-adjusted.Source: Office for National Statistics.In fact, staffing costs have increased sensibly in the recent years relative to both pre-covid levels and the whole UK economy (see chart 1). This is mainly due to a combination of low real gross value added (GVA) and high growth in employment costs, especially fuelled by the rise in national living wage and compensation of employees (including social contributions). Indeed, according to the Low Pay Commission, 45% of all minimum wage jobs last year were in just 3 occupation groups: retail, hospitality, and cleaning & maintenance.LABOUR PLANNING COMES ONSTAGEMaximo Daniel Pisa, Head of Planning & Retail Analytics, Vision ExpressByMaximo Pisa
< Page 7 | Page 9 >