Though we’re only halfway through 2024, the retail industry is already gearing up for the critical fourth quarter, which spans October to December. This period is highly anticipated by companies due to the surge in holiday shopping and customer traffic.
With the increase in holiday shopping comes higher-than-average spending, as customers search for gifts and festive items. However, despite the potential for bumper profits, the retail landscape is not as easy to navigate as it once was.
Challenges in the Retail Industry
The industry has seen significant consolidation, leading to fewer shopping options for customers. The decline in interest in indoor shopping malls has also impacted retailers that relied on mall foot traffic. Additionally, the rise in retail crime, including petty theft, shoplifting, and organized crimes like smash-and-grab, has created a challenging environment for retailers. Cities hit hard by population flight following the pandemic have seen increased retail crime rates.
For instance, in 2023, Target reported a 120% increase in store violence, including violent thefts, threats, and other incidents.
Creative Strategies to Attract Talent
To cope with these challenges, retailers are getting creative in their efforts to attract talent. Companies like Walmart have introduced enticing incentives for store managers, including higher salaries and performance-based rewards.
Walmart’s Investment in Talent
Earlier in 2024, Walmart announced significant investments in its talent pool, offering store managers:
– Up to $20,000 in annual stock grants
– An increase in base pay from an average of $117,000 to $128,000 annually
– Redesigned bonuses allowing managers to earn up to 200% by hitting targets
Successful Walmart store managers can now make upwards of $500,000 per year, thanks to these initiatives. Additionally, Walmart has promised qualitative improvements to the employee experience, such as tele-health benefits and access to more personal care.
Spirit Halloween’s Hiring Binge
Walmart isn’t the only retailer with ambitious hiring plans. Popular seasonal store Spirit Halloween is also preparing for the busy season, announcing it will hire 50,000 employees for the upcoming holiday period. Spirit Halloween typically operates for eight to ten weeks each year, with around 1,500 retail locations across the United States.
Attractive Benefits for Seasonal Workers
To attract talent, Spirit Halloween is offering several compelling benefits, including:
– Competitive salaries
– Flexible scheduling
– Premium pay incentive program
– Seasonal retention bonuses for returning store managers
– A 30% discount on Spirit Halloween purchases
Looking Ahead
As the retail industry gears up for the holiday season, the efforts by companies like Spirit Halloween and Walmart highlight the ongoing challenges and the innovative strategies being employed to ensure success. With significant hiring initiatives and attractive incentives, these retailers are well-positioned to meet the demands of the busy holiday season and ensure a positive experience for both employees and customers.
