Opinion - Letter from America

America’s top problem for indie toy retailers…

After 20 years working at A.C. Nielsen/D&B Research Company, Rick opened the first Learning Express Toys franchise in the Chicago area in 1996, and then became a sub-franchiser, opening nine more stores. Although leaving the corporate environment behind, he has combined his expertise in data and numbers with a passion for the toy retail space. This month, Rick reveals the latest challenge to hit independent toy retailers this year.

The labour shortage has surfaced as the top issue facing us since the reopening after Covid shutdowns in 2020. Pictured here is a full team as we would usually have at this time of year; today the team is half the size for double the volume. This increased sales volume – for which I am by no means complaining - means more inventory to deal with, as well as stepped-up servicing to handle the crowds. And while the economics may shout out great profits, we are forced to be careful what we wish for.

Finding, hiring and training retail workers use to be a routine process. We put the word out and plenty of good candidates would apply; from this, two out of three hires generally made the cut. In 2021, it has been very difficult to find any candidates, let alone experienced ones. Retail simply does not have the attraction as a part-time job or career that it used to. Since Covid, many have either trained for new jobs, decided not to work at all, or have entered another field that does not have the stress of dealing with customers, being on your feet 6-8 hours a day and having to work weekends.

This hasn’t been for lack of trying on our part. We have always compensated fairly but have now improved our offers to include healthcare benefits, tuition reimbursement, bonus opportunities monthly as well as at yearend, in addition to product discounts and flexible hours. Our hourly rate is well above that of the big box retailers. But finding staff is still proving very difficult.

So, what is going on besides some of the factors mentioned above? High school and college age kids no longer seem to believe that a first job can provide beneficial experience, at least in our area. Those that do apply (pressured by parents), tell us they can only work at certain times and on certain days and maybe a weekend once in a while. Retail IS weekends! Adults, meanwhile, have had to watch and be at home more with their kids during the last 18 months, and now there is less of a part time workforce available. Signs for ‘help wanted’ are all over our community, reflecting the struggle all businesses are having with hiring and finding suitable workers.

At Learning Express, the resulting problems are fourfold:

1. We can’t expand our hours of operation. Before Covid, we opened 10am to 8pm, five days a week. Now it is 10am till 5pm, with Friday till 8pm. We have maintained opening on Saturday and Sunday from 10-5.

2. Inventory is backed up. Since we are twice as busy with current toy trends, it is a struggle to move goods to the front of the store each day. Some orders are now sitting in the back for 1-5 days, when normally they would be unpacked and put on shelf the same day.

3. The stress level and burn out factor is real. We truly value our team members, many of whom have been with us for 10+ years and we see the increased pressure they are under and toll it takes. Customers are more demanding and at times can deflate these very good people who take great pride in operating a large indie toy store to the benefit of the local children and community.

4. The level of service we offer everyday as a value add is diminished. Less people means less demo opportunities and less one-to-one consultations. These are things that we are known for and have used to our advantage during Covid. How much will this diminish is yet to be determined, but the competitive edge we have always had versus online retailers may suffer.

Don’t get me wrong, the current supply chain challenges are real and will be a major hurdle, but this year it will take more time with less people to simply have the right product on the shelves, at the right price, at the right time. To all our friends and fellow indies out there, we feel your pain, know your struggles and wish you the very best. The old adage is “this too shall pass” but I wonder if we are witnessing a sea-change, if the bloom is off retail as a job and career? Small businesses that are determined will stay around, but most likely will employ less.

Richard can be reached on LinkedIn or by email at LE45@sbcglobal.net.