Retailers Cope With a Tight Labor Market

Retailers were already coping with a competitive labor market before the pandemic, but the events of the past year have compounded their staffing challenges and added some additional complications.

Many food and drug retailers recruited additional workers, raised wages and handed out bonuses last year as consumers stocked up on groceries and other necessities, such as disinfectant, sanitizing wipes and toilet paper. In addition, new sanitation protocols and a sharp increase in demand for curbside pickup also required many retailers to maintain high levels of staffing. Offering COVID-19 testing and administering vaccines for the virus also kept food and drug retailers focused on attracting workers to assist with those functions.

CVS Health, for example, said in August that it plans to raise its minimum hourly wage to $15 per hour effective next July, with incremental increases beginning immediately. The company said that more than 65% of its hourly employees were already making more than $15 per hour.

As the economy reopened and restrictions loosened throughout much of the country this past spring, other retail channels and restaurants also stepped up their hiring, putting even more pressure on the available workforce.

These conditions have led food and drug retailers to issue mass appeals for labor and to roll out new incentives, including higher wages and increased benefits.

CVS Health, for example, said in August that it plans to raise its minimum hourly wage to $15 per hour effective next July, with incremental increases beginning immediately. The company said that more than 65% of its hourly employees were already making more than $15 per hour.

“Our wage increase is the latest in a series of investments in our employees, including bonuses and benefit enhancements throughout the pandemic,” Rebecca Ferrick, a CVS Health spokesperson, told Drug Store News. “With millions of visits per day to our nearly 10,000 locations across the country, our retail business plays an important role in how we deliver care. Increasing our minimum wage for hourly employees will help attract and retain the talent needed for our

customer-centric business approach. Just as critical, it aligns with our values and our purpose, and builds on the history of our investment in our people.”

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