Hay Group Study Finds Retailers Cautiously Optimistic About 2014 Holiday Sales, While Ramping up their Focus on Omnichannel Sales

PHILADELPHIA--()--Nearly one quarter (24 percent) of retailers expect a significant increase (five percent or more) in year-over-year sales during the 2014 holiday season, while another 70 percent are predicting sales will be on par with the 2013 season. That’s according to the eighth annual retail seasonal hiring survey released today by global management consultancy Hay Group, which polled retailers collectively representing over one million employees and nearly $183 billion in revenues last year. The cautious optimism around sales is reflected in companies’ seasonal hiring plans. While most retailers (70 percent) plan to hire staff at 2013 levels, the emphasis has shifted from seasonal to permanent workers, with 24 percent of companies planning to hire more permanent staff in 2014, compared to just 13 percent last season.

“Retailers have their fingers crossed for a strong 2014 holiday season,” said Craig Rowley, Vice President and Global Practice Leader for Hay Group’s retail practice. “In the meantime, however, they’re acting prudently. Though we’ve seen GDP jump by more than four percent in the second quarter, the same economic bump hasn’t yet translated to the retail sector. Foot traffic remains slow, and back-to-school shopping had a slow start this year, so retailers are being careful in their holiday season planning.”

The most significant shifts for retailers in the 2014 holiday season can be found in omnichannel, which is changing the landscape for companies and impacting their holiday staffing strategies.

Omnichannel Strategies are in Place and Mobile is Expected to Drive Sales

Nearly half (47 percent) of retailers surveyed in 2014 have a clearly articulated omnichannel strategy, compared to only 14 percent in 2013. Furthermore, only six percent of companies say they do not have a strategy, compared to 22 percent last year. The majority of retailers (71 percent) will be relying, at least in part, on their mobile platform to help drive holiday sales.

Staff Qualifications & Training Adjust for Omnichannel Environment

Retailers are paying more attention this season to hiring seasonal staff who align closely with their brand culture, with 18 percent of respondents indicating they’re placing a greater emphasis on brand-culture alignment when evaluating seasonal candidates, compared to only four percent that said the same in 2013. Additionally, 59 percent of retailers said their omnichannel strategy has impacted the training they provide to their sales staff. “Retailers can no longer settle for point-and-sell stockers when it comes to staffing their stores," said Maryam Morse, National Practice Leader for Hay Group’s retail practice. "Consumers now expect a seamless shopping experience across channels. To respond to this demand, retailers must have well-trained and nimble in-store employees who can serve as true brand ambassadors, leading customers to the point of sale, regardless of where the product resides."

Hiring Shifts to Provide Support Across Multiple Channels

Further demonstrating the impact of omnichannel on 2014 holiday staffing decisions, nearly three times as many retailers (24 percent vs. nine percent in 2013), are focusing on hiring seasonal staff to provide support across multiple channels. To meet needs from increased e-commerce sales, 29 percent will increase seasonal staff levels in distribution centers.

Promotions Expected to Come Early, Even Before Halloween

Reflecting retailers’ prudent attitudes toward inventory, staffing and holiday promotion strategies, many companies are shifting their promotions earlier in the year. Most retailers (53 percent) will begin promotions in either September (18 percent vs. 13 percent in 2013) or October (35 percent vs. 22 percent in 2013) this year. “Shoppers can expect to start seeing holiday sales early this season, as retailers work to get customers in the door sooner, rather than later,” Morse said.

“Retailers are stepping up to the omnichannel challenge this year in an effort to drive sales from what’s proving to be a very disciplined consumer,” said Rowley. “Even so, the 2014 holiday season is likely to be a testing ground for many large retailers as they try to get a better grasp on what today’s consumer is going to buy, where they’re going to buy it and how they want to receive it. Retailers who come out on top will be those with the flexibility to quickly adapt to customers’ needs across a variety of channels.”

About Hay Group’s 2014 Seasonal Hiring Survey

In its eighth year, Hay Group's 2014 Seasonal Hiring Survey analyzed responses from major U.S. retailers including J. Crew, Express, Sports Authority, Shopko, Carter's, Stage Stores and QVC. All told, respondents collectively represent over one million employees and nearly $183 billion in revenues in 2013.

About Hay Group

Hay Group is a global consulting firm that works with leaders to transform strategy into reality. We develop talent, organize people to be more effective and motivate them to perform at their best. With over 3,000 employees working in 87 offices in 49 countries, we work with over 7,000 clients across the world. Our clients are from the private, public and not-for-profit sectors, across every major industry and represent diverse business challenges. Our focus is on making change happen and helping people and organizations realize their potential.

Contacts

For Hay Group
Evan Stisser, 212-221-4616
Evan@blissintegrated.com

Contacts

For Hay Group
Evan Stisser, 212-221-4616
Evan@blissintegrated.com