The vast majority of companies operating in the retail sector (94%) expect an increase in personnel costs in 2023.

The degree of optimism in retail and FMCG is significantly higher in Romania, as in a similar Horváth study conducted at the European level (June 2023), responses were much more cautious.

To combat labor shortages, companies in the industry are considering offering above-average salaries and flexible work models.

The most affected areas: the area of ​​cash registers or for placing products on shelves.

The main reason for the labor shortage is sustained economic growth combined with high turnover, as well as demographic changes, with people born between 1946 and 1964 retiring.

Research shows that people are increasingly seen as a company’s most important resource, and employee retention is critical.

Companies are working on flexible working models to remain attractive to new generations as well. In retail, there is a shortage of labor, for example, in the field of cash registers or for placing products on the shelves.

At the same time, FMCG companies face shortages related to profiles with certain qualifications (such as engineers) as well as at the blue-collar level, the cited study also shows

In the retail industry, in addition to internal optimization, there is an increased focus on improving the customer experience, for example by using new technologies such as AI, both at a strategic level (data analysis) and optimizing payment processes.

With the beginning of the conflict in Ukraine, we see a change in the level of interest: companies monitor their activities from the point of view of pricing.

For FMCG companies, the ability to manage prices is important, especially given the increase in raw materials. Many companies have already set pricing targets for their sales force.

Another trend is related to the reduction of stocks created during the crisis in the supply chain. At the same time, companies face an increase in the number of customers who delay payments due to rising interest rates.

Long collection times for accounts receivable are a red flag and often indicate difficulties with accounts receivable management or billing and collection systems. Although signs of a market slowdown are beginning to emerge, companies are becoming more conservative about long-term investments, setting increasingly strict criteria for new projects

For FMCG companies, the need for liquidity has increased significantly as in many cases there is a scramble to release capital locked up in large inventories.

About the use of artificial intelligence:

The true impact of AI applications is currently unknown, so we are cautious

somewhat unsure of the answers, as Horvath’s research shows.

The retail industry is increasingly looking at optimizing internal functions with AI, while the FMCG industry is evaluating opportunities in product development

Currently, artificial intelligence is at an early stage, comparable to the launch of the Internet, examples

large-scale use will appear in the future (for example, for inventory management, human resource planning, personalization of the customer experience, data analysis and decision-making processes, as well as workflow automation)