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July 15, 2021

Understaffed: Fighting the Grocery Store Labor Shortage

Grocers are experiencing a dramatic decline in employee retention as the industry battles intense competition for workers, all while contending with the eroding loyalty among shoppers concerned about rising prices. Taken together, those headwinds represent a sharp change from the beneficial forces that for months propelled the industry, when grocery stores were among the few retailers flourishing over the past 18 months.

Many grocers have been holding hiring events and taking steps to raise wages in an effort to draw in new workers. In March, Kroger said it would boost its average hourly wage to $16 by the end of 2021. In the same month, Lidl reported that it would increase starting pay for workers in its Philadelphia-area stores to $15 per hour.

While employment in grocery stores remains under pressure, the recent downward trend is showing signs of slowing. The 13,000-position drop in June was below position losses of 26,000 in May and 47,000 in April, suggesting that the hiring campaigns grocers have been conducting to attract workers may be paying off.

Grocers may also be benefiting from decisions by a number of states to end the extended unemployment benefits that have been offered to people left without work during the pandemic. In May, the National Grocers Association said the extra benefits included in the American Rescue Plan were so generous that they encouraged people to avoid looking for new positions.

Grocers know the challenge of keeping shelves conditioned and having an efficient inventory management process when they’re low on staff. That’s especially true today, as customers are looking to find all items on their shopping list at one store, with 40% of customers saying they are shopping in fewer stores for groceries.

Keeping shelves fully stocked and organized can increase sales and significantly improve customer loyalty. Retail Space Solutions designs, develops and produces a full line of pusher display systems that enhance your product presentation, positively impact the in-store experience and deliver real results.

Pusher display systems automatically keep products on the shelf organized and front-faced, reducing or eliminating false out-of-stocks. Built to simplify restocking and improve labor efficiency, pusher display systems feature trays that quickly slide out for effortless backfilling – saving short-staffed grocers time and money.

Bringing products to the front of the shelf to create a new-store opening feel daily, pusher display systems from Retail Space Solutions require minimal conditioning and encourage labor savings – all while making purchasing decisions easier for shoppers.

For more information on pusher display systems from Retail Space Solutions, visit www.retailspacesolutions.com or call 1-800-279-5291.