Store labor modernization and workforce management
A new approach for retailers
Labor remains the largest controllable operating expense for many retailers, yet it is the least modernized. Addressing that requires more than a new system; it will take a fundamentally different approach to how the store workforce is managed.
Unlocking measurable value with labor management
Over the past decade, retailers have materially improved how store labor is planned and scheduled. Standards-based scheduling and auto-generated schedules are now common among large retailers, enabling quicker, compliant scheduling while unlocking 0.5 to 2.5% labor cost optimization. At the same time, leading retailers are beginning to layer in AI, using real-time task prioritization and labor insights to improve day-of execution and reduce administrative burden. For most retailers, however, this is where the progress stops, and it may not be enough.
The opportunity in front of retailers is significant. Modernizing store labor management is not just a defensive move to keep up with rising costs, regulation, and retail workforce instability; it is a path to unlock measurable value across the business. The retailers that pull ahead will do so by building capability progressively, taking steps that improve execution today while laying the foundation for more connected operations.
Where retailers focus and how quickly they move will vary. Smaller-box stores with fewer employees benefit most from simplifying execution through automation, task prioritization, and reducing administrative burden. In larger formats, the scale and complexity of the retail workforce make precision more critical, requiring deeper investment in forecasting, scheduling, and real-time labor adjustment. As a result, retailers will prioritize different store labor management dimensions and spend varying amounts of time at each stage of the maturity curve based on their operating model and complexity.
