April 2018
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April 2018
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Increasing Consistency Increases Profitability in Retail Sector

Wednesday, April 11, 2018

Every business is looking to improve productivity and performance, but this is especially true in retail—an industry plagued by low levels of engagement and high percentages of employee turnover. However, a study by researchers working with Gap Stores recently revealed what might be the silver bullet in keeping employees satisfied and productive: consistency. Conventional wisdom in retail is that lean, unstable scheduling is inevitable in the fast-paced brick-and-mortar retail industry. Managers frequently post schedules at the last minute, schedules can change at a moment’s notice, and employees aren’t guaranteed a consistent number of hours or regular shifts. It turns out that making a concerted effort to avoid these practices yields tremendous returns: According to the study, the 28 stores that intentionally provided employees with consistent work schedules saw a 7 percent increase in store revenue. This means that an approximate $30,000 investment in labor hours yielded nearly $3 million in increased sales. Stores also saw decreases in theft, decreases in managerial time spent dealing with scheduling concerns, and improved organization.

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