“We allow enterprises to create an attractive environment for employees with benefits, bonuses and other incentives, and they themselves choose what suits them. If the market is competitive and open, these advantages will increase.” With these words Mr. Matthew Sheapresident and chief executive officer of the National Retail Federation (NRF), advocates, speaking to “Kathimerini” on Sundaylabor relations models in retail from USAthe model is very different from that used in Greece and in Europe in general.

Mr. Shay, head of the world’s largest retail association, was in Athens a few days ago to attend the Spring Meeting of the Federation of International Retail Associations (FIRA), hosted by the Hellenic Confederation of Trade and Enterprise (ESEE).

“During the pandemic, consumers switched from spending on services and experiences to spending on goods. The industry saw record high demand and volatile spending levels. Retail turnover grew by 7.7% in 2020, by 13.6% in 2021 and by 8% in 2022. Pre-pandemic retail CAGR was 3.6% and we expect sales to return to pre-pandemic levels. What we see in the US in terms of consumer habits is that they prioritize comfort, convenience, they prefer to shop in physical stores, e-commerce is returning to long-term growth rates, and they are worried about inflation, government spending and crime.

In the US, we are still seeing a dichotomy, a differentiation in the habits of households based on their income. Low-income households are pushed away from buying luxuries as most of the budget is spent on food, rent and energy. In addition, they use coupons, switch to private labels and generics, shop on sale more often, and shop less often. On the other hand, high-income households are still buying luxury items, turning to spending associated with experiences such as travel, entertainment.

Two-decade record for the number of physical stores in the US in 2022.

– E-commerce market share peaked during the pandemic, accounting for about 20% of sales. E-commerce is currently returning to long-term growth rates and accounts for about 17% of sales. Despite the rise of e-commerce, consumers are prioritizing convenience by shopping across multiple channels. In-store shopping remains a vital part of the US shopping experience. Result: In the third quarter of 2022, the number of retail stores in the United States reached its highest level in more than two decades.

A physical store is not only a destination for transactions. It can be a place where consumers interact with brands, learn about products, and have a new shopping experience. In addition, many orders placed online are processed by brick-and-mortar stores, making brick-and-mortar stores an important part of the digital shopping ecosystem. In 2022, US retailers said they plan to open about 7,860 stores and close about 1,680. From the beginning of 2023 to the present, they have announced that they will open 2,925 stores and close 2,585. This shows that brick and mortar stores are critical to American retail.

“The job market and wages in the US are still strong, but there aren’t many employees to fill retail vacancies. The number of layoffs in the industry was the lowest in the last 10 years. The hourly wages of full-time retail workers increased by 16.1% in 2022 compared to 2019. Of course, we still have about a million vacancies in retail.

Advantage

“More generally, the free flow of capital and the ability of employers in all industries, including retail, to retain the labor they need is a great advantage of the American capitalist system. This labor market dynamism is a hallmark of our economic system and a major factor in the good performance of the American economy. We love our system! Employees can choose between different options, finding what suits their needs and lifestyle. We try to take a balanced approach to labor legislation.

In the US, we don’t have legislation that says work hours are 30 or 40 hours a week, or that workers will work 6 days a week. We allow companies to create an attractive environment with perks, bonuses and other incentives, and employees choose. If the market is competitive and open, these advantages will increase.

– Would you recommend American retailers to invest in Greece?

– I would do it. Of course, this also depends on the sub-sector, the possibilities are different for a supermarket chain, for a department store or for another category.