The Smart Retailers Playbook: How to Cut Costs without Cutting Service 

The Retail balancing act

Retailers are under more pressure than ever to control labor costs. With rising wages, inflation, and economic uncertainty, it’s tempting to cut hours to save money. 

But here’s the reality: cut too much, and you lose customers, too. Understaffed stores lead to poor service, frustrated shoppers, and lost sales. So, how do you reduce labor costs without sacrificing customer experience? 

You need a smarter strategy. Welcome to The Smart Retailer’s Playbook. 

Play #1: Smarter scheduling = lower costs without lower sales 

The Problem: Overstaffing drains budgets, while understaffing costs sales. Most Retailers rely on static schedules that don’t adjust to real-time traffic patterns. 

The Play:

• Use workforce management solutions, like StoreForce, to create schedules based on demand. 
• Your top 20 open hours drive 50% of your weekly sales.  When you don’t have the coverage you need, you miss your weekly sales targets. Schedule to 90% peak coverage to ensure associates are available when shoppers are ready to buy.  
• Reduce unnecessary overtime and excess labor hours without affecting service. 

Pro Tip: The right scheduling strategy ensures you pay for productivity and not idle hours. 

Schedule your best performers when it matters most 

The Problem: Not all associates generate the same sales. Top-performing employees sell more per hour, but if they’re not scheduled during peak times, you’re leaving money on the table. A strong sales team isn’t just about hiring the best, it’s about scheduling them at the right time. 

The Play:

• Use performance-based scheduling to put your highest sellers on the floor when it counts. 
• Track real-time retail analytics to identify top-performing associates and optimize their shifts. 
• Ensure associates are engaged in revenue-generating activities, not just clocking in and out. 

Pro Tip: The right people, at the right time, equals higher SPH (Sales Per Hour) and better labor ROI. 

Maximize selling hours to increase productivity

The Problem: Too much time spent on non-selling tasks like stock replenishment, markdowns, and administrative work takes associates away from customer engagement. 

The Play:

• Schedule sell and non-sell hours separately to ensure associates are focused on customers when it matters most. 
• Frontload non-selling tasks before peak traffic hours to avoid pulling staff away from sales opportunities. 
• Use workforce management solutions to track and adjust task execution without disrupting selling time. 

Pro Tip: Every shift should be structured so that selling hours drive revenue, and non-selling hours support it, not compete with it. 

Reduce turnover by investing in your people

The Problem: Replacing an associate costs up to $3,500* per hire. High turnover leads to higher recruitment and training costs, plus lost productivity. 

The Play:

• Offer scheduling flexibility to improve work-life balance and job satisfaction. 
• Implement incentive programs to reward performance and retain top talent. 
• Use career development plans to invest in associates’ long-term growth. 

Pro Tip: Happy employees [run it like you own it]deliver better service, and better service equals higher sales. 

*Source: Center for American Progress 

Final Score: Reduce costs and improve service to win in Retail. 

Cutting labor costs doesn’t mean cutting service, it means optimizing it. With StoreForce’s workforce management solutions, Retailers can: 

• Reduce labor costs while maintaining customer service levels. 
• Improve scheduling efficiency to eliminate wasted labor hours. 
• Engage and retain employees, lowering turnover costs. 

Let’s talk about how StoreForce can help you get there.