‘Cost of running store among top three retail challenges’

Nearly a third of retail leaders (28 per cent) are concerned over running cost of their stores in 2023 as they face energy crisis, says a new study, adding that inflation and supply chain issues also continue to be the challenges.

According to new data from workforce management technology company Fourth, running costs, the impact of having to raise prices to tackle inflation (31 per cent), and supply chain issues (61 per cent) are the most significant challenges facing retailers in the year ahead.

The data further show nearly a quarter (23 per cent) of retail employers are planning to raise wages as a direct reaction to the cost of living and inflation.

Also, most retail employees (81 per cent) believe that being able to access wages as they are earned, rather than waiting for payday, would help reduce financial stress in 2023. Despite staff’s preference for earned wage access schemes, only 13 per cent of employees currently have access to them.

Employers are already looking to action a plan to bring wages in line with the current cost of living. Fourth’s data shows that nearly a quarter (23 per cent) of retail employers are planning to raise wages as a direct reaction to the cost of living and inflation.

With the added pressure of this cost-of-living crisis and recession impacting finances, employees are becoming more acutely aware of their current level of financial literacy as they hope to squeeze the most from their money this winter. It’s natural then, that 22% of retail employees would like more financial literacy guidance before using benefits like earned-wage access.

This research comes from Fourth’s latest whitepaper, A view from the experts: The shape of retail 2023, which gives retail leaders insights into the industry along with trends, opportunities, and pain points for 2023.

Looking ahead to 2023, Fourth’s MD EMEA Sebastien Sepierre said,  “The impact of the financial crisis is becoming increasingly apparent and with it, highlighting the tools that staff need to help protect their financial wellbeing in 2023.

“Whether it’s introducing earned wage access schemes, increasing financial literacy within the workforce, or working to increase salaries to combat inflation, there are several ways retailers can support their employees from the first quarter of 2023,” he said.