‘Great retail reset’ is coming in the U.S., new report predicts

As the nation eases further into 2022, retailers face a host of challenges.

Empty shelves, surging inflation, shifting consumer habits, mob-driven store thefts and an ongoing labor shortage are just some of the issues.

A new report from Deloitte says those myriad factors are setting the stage for a “great retail reset” that will propel businesses into a more stable and profitable position.

But it’s going to take some work.

The report desribes three pillars of the reset:

A reimagined workforce: 83% percent of retailers surveyed said their biggest investment will be recruiting new employees and retaining them. Deloitte says companies should invest in technology and automation to compete with more tech-savvy industries, while also offering greater work flexibility to attract talent.

A shifting supply chain: In light of supply chain backups, businesses are seeking more credible information and technology upgrades to develop a more agile system. Automation, transparency and new partnerships will figure into this, the report said.

A meshing of physical and digital: 70% of retailers surveyed said they plan to invest more heavily in digital marketing, with a focus on e-commerce and online shopping, although data security remains a concern.

In regards to staffing, Deloitte says employers will have a tough time competing with the flexibility of the gig economy for hourly wage workers, and the COVID-19 pandemic has exacerbated the problem.

Many employees who were displaced, either temporarily or permanently, during COVID-19 shutdowns have reevaluated their options and aren’t as quick to take the first job that comes along. Employers are struggling to fill openings as a result.