Retail labor plans fall short on the front line, survey finds

Retail has an execution problem, and it’s bigger than many realize. Despite investments in forecasting systems and scheduling platforms, there’s a persistent disconnect between labor planning and what actually happens in stores. Associates watch customers walk away frustrated and revenues slip through the cracks, creating an execution gap that results in lost sales, stressed workers, and missed opportunities.

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This isn’t simply about needing better scheduling software or more staff hours. It’s about fundamentally rethinking how retailers connect accurate forecasting, flexible labor modeling, smart scheduling, and real-time execution. The findings paint a clear picture: Retailers who don’t address this execution gap risk falling behind competitors who can deliver superior customer service and more attractive working conditions.

When customers need help most, staff aren’t there

Here’s the retail paradox costing companies money every day: Stores are consistently short-staffed precisely when customer traffic peaks. More than half (51%) of associates report their store is understaffed during busy periods most of the time, with 25% saying this happens almost every time customer volume increases.

The impact is immediate and costly. Nearly three-quarters (73%) of retail workers have watched customers become frustrated or leave because there weren’t enough associates available to help them. These aren’t minor inconveniences; they’re direct revenue losses happening in real-time.

Interestingly, the opposite problem is just as common. A striking 65% of workers report seeing unproductive downtime due to overstaffing at least a few times per month, pointing to labor hours being systematically misallocated. More than one-third (38%) of associates have been sent home early due to too many people being scheduled, creating a lose-lose scenario of lost income for workers and unnecessary payroll costs for employers.

Only 36% of frontline retail associates say staffing schedules consistently align with actual store traffic patterns. This persistent mismatch indicates a deeper issue with labor allocation, emphasizing the importance of aligning labor with actual demand and work requirements in real-time.

The human cost of labor planning gaps

The scheduling chaos is creating a retention crisis threatening the foundation of retail operations. The survey reveals that 82% of associates regularly feel overwhelmed at work due to inadequate staffing levels, while 80% say unpredictable schedules add significant stress to their jobs.

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Nearly three-quarters (74%) of workers are regularly pulled away from their primary duties to fill coverage gaps, and 73% report being asked to stay late beyond their scheduled shifts due to short-staffing. This constant adaptation prevents employees from developing expertise in their roles and providing specialized service that drives customer loyalty.

The personal toll extends far beyond work hours. More than one-third (38%) of workers have missed important personal events due to last-minute scheduling changes, with an additional 21% living in constant worry this will happen to them. Job satisfaction understandably plummets when work becomes unpredictable.

Despite local Fair Workweek laws designed to provide advance notice, reality remains chaotic for most workers. Just 23% say their weekly schedules are very predictable, and 20% of workers in regulated areas still face weekly last-minute changes. Even more concerning, 26% of associates are scheduled for “clopening” shifts—closing at night and opening the next morning—multiple times per month. Yet, only 39% say their store has policies to prevent this practice.

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Unpredictable schedules fuel a frontline turnover risk

Nearly one-third (31%) of frontline workers are actively considering quitting due to poor scheduling or lack of hours, with another 22% close to that point if conditions don’t improve. More than half of retail workers are at risk of leaving, taking their training, customer relationships, and institutional knowledge with them.

Financial implications extend far beyond replacement costs. The data shows 61% of associates say they would be more likely to stay in their job if their schedule were more predictable. Meanwhile, 44% report seeing coworkers quit specifically because of scheduling issues, creating knowledge gaps and training burdens that compound operational challenges.

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The situation creates a vicious cycle, with 36% of associates working a second job due to inconsistent hours, impacting their performance and availability during peak retail periods.

Predictable schedules remain elusive despite Fair Workweek laws

Cities with Fair Workweek legislation, including New York City and San Francisco, have made measurable improvements curbing extreme scheduling practices. These laws require retailers to provide schedules weeks in advance and limit last-minute changes, on-call shifts, and back-to-back “clopening” shifts. Retailers face hefty fines and premiums for noncompliance, showing some success.

However, while protections have curbed egregious practices, overall schedule predictability remains elusive even in regulated environments. Only 23% of workers in law-covered areas describe their schedules as very predictable, significantly lower than the 36% in areas without such mandates. Some metrics are actually worse in regulated areas, indicating retailers are struggling to adapt existing planning systems to new requirements.

AI-powered labor planning and the future of workforce management

Retail associates aren’t resistant to change; they’re eager for technology-driven solutions. The survey found 74% of frontline workers would welcome automated, traffic-based scheduling tools aligning labor with real-time customer demand and operational needs.

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Workers see automated systems as a pathway to better working conditions. Potential benefits include improved customer service (21%), more consistent operations (19%), less stress on staff (13%), and more predictable schedules (11%).

The key to success lies in building trust through accuracy. As retailers roll out automated scheduling systems, adoption depends on delivering precise schedules aligned with real-time needs, ensuring frontline teams have adequate coverage without constant intervention.

The path forward for retailers

The retail industry stands at a crossroads. Retailers must stop treating labor planning and scheduling as disconnected functions. Organizations that get this right will unlock measurable gains in customer service, associate retention, and overall store performance.

Success requires recognizing the execution gap between planning and practice as a costly operational blind spot. Retailers that utilize demand data to match labor needs can close the loop between planning and execution.

Workers are ready to be part of the solution. They see the problems, understand the stakes, and welcome technology-driven changes. The question now is whether retailers will move from reactive scheduling to proactive, predictive workforce management or continue letting opportunity slip away, one frustrated customer and burned-out employee at a time.

This story was produced by Logile and reviewed and distributed by Stacker.