30 March 2016
Cutting store staff – the instinctive response from many retailers when looking to reduce costs – is both negative and counterproductive.
This is especially true as businesses operate in an era where consumers demand greater customer service.
Additionally, cutting the workforce – in the wake of the living wage – will also further unsettle remaining staff.
There are other options – both practical and holistic – that will improve profitability and would enable retail bosses to pay their staff even more then legally required.
Based on many detailed store productivity projects with leading UK retailers, Kurt Salmon knows that simple changes in both the staff labour and business operating models can improve profitability by 12% to 15%, so the higher running costs can be absorbed without losing staff.