Giving Thanks to Improved Labor and Operations Management for Retail with Data and AI

There is no right way of celebrating the holiday season. Some may be melting onto their couch, heart and stomach full, embracing their food coma. Some may be preparing for a night of long lines, eager for all the great values they will secure during their annual Black Friday shopping. Regardless, the holiday season is upon us, and retailers must be ready for the surge of shopping and with optimized customer experience. However, despite the preparations, retailers consistently face a unique set of challenges across labor and operations management. Whether in food retail, fashion and cosmetics, or specialty stores like furniture and sporting goods, businesses are grappling with a common thread: how to efficiently manage operations while addressing labor shortages and improving the employee experience. 

Fortunately, as the market continues to evolve, so does technology. AI can be leveraged to tackle these issues head on. AI-powered solutions like that of Neudesic leverages advanced data-driven solutions and customized technology to enable retailers to overcome operational inefficiencies, improve employee engagement, and stay competitive in an evolving landscape. 

The Labor Challenge: Attracting and Retaining Talent

Retail faces labor shortage and employee retention challenges. McKinsey & Co reported that as of 2024, there are about 2.5 million more job openings than job seekers. In McKinsey’s survey, 41% of retail worker responders indicated career development as a top reason to leave their current role, and 29% chose a lack of skill utilization and meaning in their work. Many workers find onboarding processes uninspiring, and the broader retail work experience lacks incentives or clear growth opportunities. These reasons make it harder to attract and retain talent, especially younger Gen Z workers.  

Additionally, the demands on retail employees are evolving. Beyond traditional roles like stocking shelves or running cash registers, employees must now handle tasks like order picking for online fulfillment and providing in-depth product information and recommendations for showroom-style customer interactions. With fewer workers available, the workload is even more daunting. 

The Operational Challenge: Fragmented Systems and Inefficiencies 

Retailers today manage a vast amount of data spread across multiple disconnected systems. Communication in retail stores and between stores and corporate office often occurs through fragmented channels like email, chat, or even printed documents, making it difficult to maintain visibility or foster collaboration. These inefficiencies are compounded by the complexity of managing operations across dispersed locations, especially when most employees work in the field, far from corporate headquarters.   

Transforming Retail Labor and Operations with AI 

Data and technology are powerful tools to address the labor and operational challenges that retailers face. In fact, according to a survey conducted by NVIDIA, 42% of responders already use AI and 34% are piloting AI initiatives. By enabling data management best practices, improving employee engagement, and streamlining operations, AI helps retailers: 

• Enhance the employee experience to attract and retain talent. 

• Make timely, informed decisions. 

• Forster better collaboration and communication 

• Optimize labor and operational processes for increased productivity. 

In NVIDIA’s survey, responders have indicated several use cases where AI has improved business operations. Notably, 53% of responders attributed AI to creating operational efficiencies and 13% noted enhancing employee upskilling. This suggests that AI drives innovative solutions to labor and operations management that can be implemented today. 

The Labor Solution: Attracting and Retaining Talent 

Retailers can leverage AI to improve labor management by enhancing the employee experience. Whether answering questions, offering step-by-step instructions, or guiding them through new tasks, AI-powered tools ensure employees feel supported and capable. By simplifying complex tasks, these tools also help reduce onboarding friction and create a more engaging work environment. 

The Operational Solution: Real-Time Visibility 

Retailers can leverage AI to improve operations management by providing store managers, corporate employees, and field teams with real-time visibility into operations. By integrating multiple systems and fostering collaboration, AI-powered solutions empower decision-makers to act faster and more effectively. Employees in the field can also provide feedback directly to corporate, ensuring that decisions are informed by real-world insights.

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Neudesic’s AI-Powered Solutions To Revolutionize Retail Labor and Operations  

Neudesic offers AI-powered solutions that cater to retailers of all sizes. Neudesic’s approach combines advanced data management and customized AI-powered solutions to address these challenges holistically.  

These solutions don’t just apply to a one-size-fits-all approach; they are tailored technology to meet each retailer’s unique needs. For companies hesitant to invest in expensive, rigid platforms, Neudesic provides a flexible, cost-effective entry point. Our tools are designed to grow with your business, offering scalability and customization to align with your long-term goals. 

With technology like the Control Tower and custom AI-powered Microsoft Copilot, Neudesic empowers retailers to embrace operational excellence, adapt to labor challenges, and create an employee experience that fosters growth and retention. Tools like Microsoft Copilot, integrated into Neudesic solutions, provide on-demand support for employees and improve the onboarding experience.  

Neudesic’s Control Tower addresses these pain points by consolidating all data into a single, intuitive platform with real-time visibility. By focusing on data and technology, Neudesic helps retailers tackle their toughest challenges, ensuring success in a competitive and rapidly changing industry.