Supermarket trends are putting pressure on margins and labor costs

The supermarket industry is in turmoil. Profit margins are shrinking, the labor market is tight, and the major chains are merging to become stronger. Just think of the recent merger of Coop and Plus or Nettorama’s acquisition of Boni. At the same time, high energy costs and rising product prices are taking a heavy toll on businesses.

In this context, efficient human resources management is more important than ever. After all, it is precisely in labor costs and employability that the opportunities to withstand the pressure lie. The 2024 Employer Labor Market Study shows that many employers are addressing this through continuing education, innovation, and workforce optimization. And that is exactly where a modern workforce management (WFM) system makes all the difference.

3 Major Challenges for Supermarkets

1. Staff Shortages and Flexible Deployment

The tight labor market makes it difficult to find suitable employees. At the same time, stores need to keep running even when employees are sick, on vacation, or during peak periods. Supermarkets are looking for ways to deploy employees more flexibly, for example, across multiple stores.

A good WFM system makes this possible. You can see at a glance where capacity is available and schedule employees across multiple locations. This allows you to make the best use of your existing staff—without placing an additional burden on individual teams.

2. Rising labor costs

Labor costs are one of the biggest expense categories in a supermarket. With rising minimum wages and adjustments to collective bargaining agreements, it’s becoming increasingly important to plan wisely.

A WFM system gives you real-time insight into your planned and actual hours worked, which are linked to your labor costs. You can immediately see whether you’re still within budget and make adjustments in a timely manner. This prevents surprises down the road and helps you work efficiently.

3. Pressure on Productivity

With fewer employees, you have to get just as much—or even more—work done. That requires smart technology to help with planning, assigning, and monitoring work. Not by working harder, but by organizing more intelligently.

WFM software supports this by automatically generating efficient schedules that take into account availability, contract hours, and expected visitor numbers. It also saves you time on administrative tasks and helps you avoid errors that can easily occur in Excel or manual systems.

“Planning in Excel is time-consuming and prone to errors. Read here for 6 reasons why supermarkets are switching to a planning tool.”

What Many Employers Are Doing, According to the 2024 Employer Labor Market Study

The 2024 Employer Survey shows that many companies are focusing on:

• ✍️ Employee training to boost productivity
• 🌟 Innovation and Technology for Process Automation
• ⚖️ Cost Control and Work Flexibility

These developments are consistent with what a good WFM system enables:

• It helps teams by providing more structure and clarity, enabling employees to work more efficiently.
• It makes processes smarter and faster, from scheduling to payroll processing
• It enables flexible deployment of employees, even across multiple branches.

From Survival to Looking Ahead

In times of consolidation, rising costs, and staff shortages, having a firm grip on planning is not a luxury—it’s a necessity. With the right technology, you can maximize the effectiveness of your workforce, reduce costs, and keep your operations agile.

How flexible and future-proof is your workforce planning today? & Are you curious about how other supermarket chains are approaching this?

About the Author Becca Ligthart

Becca Ligthart is a passionate marketing and communications professional who focuses on providing practical tips and new insights for the effective use of WFM in companies, with a strong emphasis on forward-looking processes.