09 June 2008, 12:57 PM
  • Shop owners are wasting 7.5% of their wage bill on poor allocation of staff hours, according to management consultancy, Kurt Salmon Associate (KSA).

KSA explains that retailers should do everything they can to guarantee their staff spend the maximum amount of time on the shop floor rather than carrying out back office duties. “The probability of a buying customer doubles if there is interaction with a member of staff,” says Sue Butler, senior manager at KSA. “If back office tasks were made more efficient, employees could spend more time on customer-facing activity, which would result in an increase in sales and potentially a lower wage bill.”

She adds, “With all the emphasis in retail on cost-cutting, this is an area where a real difference can be made. Labour remains retail’s second largest cost after merchandise. Research among our clients in Europe and North America shows that most retailers don’t have a clear idea of how long it takes store staff to carry out specific processes and tasks so there is often no logic behind the number of labour hours allocated.”