CNBC

04 September 2015

“It’s really become a major supply chain risk,” Frank Layo, retail strategist at Kurt Salmon, shares with CNBC, when reflecting on this year’s labor shortage as retailers prepare for the holiday season. Layo adds that during peak season, distribution centers often require two to five times normal staffing levels. Layo predicts certain retailers will need to hire 15% to 20% more warehouse workers this Christmas season to account for their projected 30% online sales growth. He’s concerned, however, that there may not be enough bodies to fill those roles. Over the past week or two, Layo has heard from about two dozen retailers with nationwide distribution that they’re having a tough time filling jobs in their warehouses.

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