Transport & Productivity: Overlooked Factors in Grocery’s Labour Shortage

Labour shortages in the UK grocery sector are at crisis levels, affecting everything from stocking shelves to supply chain efficiency. While conversations often focus on immigration policies, wages, and automation, one crucial factor remains largely overlooked: transport. Limited access to reliable, affordable transportation is restricting workforce availability, particularly for shift-based roles requiring early morning, late night, or weekend coverage.

The Root Causes of Labour Shortages in Grocery

Labour shortages are driven by multiple industry-wide pressures, including:

Post-brexit workforce reductions The loss of free movement has significantly impacted the availability of EU workers, who once formed a large portion of the grocery and logistics workforce. A 40% decline in EU nationals working in grocery retail and supply chains has left employers struggling to fill essential roles.

Rising costs & profit margins Grocers operate on notoriously slim profit margins. Increases in the National Living Wage and additional tax levies have forced many to reassess hiring strategies, with some opting to reduce workforce sizes or restructure shifts to cut costs. However, these reductions have led to increased pressure on existing employees, worsening retention challenges.

Driver shortages impacting supply chains The UK’s persistent lorry driver shortage continues to disrupt grocery supply chains. With an estimated shortage of 50,000 drivers, deliveries have become unreliable, leading to product shortages, stock delays, and lost sales.

The Role of Transport in Shift Coverage and Workforce Retention

One of the biggest operational challenges in the grocery industry is ensuring that shifts (particularly off-hour shifts) are fully staffed. Without reliable transport options, workers simply cannot get to their jobs.

Unappealing off-hour shifts Many grocers struggle to fill early morning and late-night shifts. Public transport is often unavailable or unreliable outside of traditional commuting hours, leaving employees dependent on expensive taxi services or long, inconvenient commutes. The result? High absenteeism, staff churn, and an inability to maintain consistent service levels.

Operational disruptions & customer experience When grocers can’t staff their stores or warehouses, operational disruptions cascade throughout the business. Late deliveries mean empty shelves, reduced customer satisfaction, and lost revenue, particularly during peak periods such as Christmas and summer holiday seasons.

Zeelo’s Transportation Solution: A Direct Fix for Grocery Labour Shortages

Zeelo is a fully managed staff transportation solution that helps grocers overcome workforce mobility challenges. By removing the transport barrier, Zeelo expands employers’ talent pools, improves retention, and ensures staff can reliably cover all shifts.

‍Dynamic, optimized routing Using proprietary routing algorithms, Zeelo designs custom routes based on where employees live, ensuring maximum uptake and efficiency while keeping costs controlled.

Reliable, consistent service Zeelo guarantees that employees make it to work when they are supposed to, even during difficult commuting hours. This helps reduce lateness and absenteeism, improving store and warehouse productivity.

Scalability to match workforce needs Zeelo offers flexible contract options, allowing grocers to scale up transport solutions during peak hiring seasons and adjust as demand fluctuates. Whether it’s a fleet of minibuses for a single distribution hub or a national shuttle program, Zeelo provides tailored support.

The Competitive Edge: How Grocery Employers Can Win in a Tight Labour Market

Labour shortages in grocery won’t be solved overnight, but a multi-faceted approach that includes transport solutions can help businesses stay ahead. Grocers investing in staff transport can:

• Access a wider talent pool, including workers in transport-poor areas.

• Reduce recruitment costs by improving job attractiveness.

• Increase staff retention rates by providing a reliable and stress-free commute.

• Enhance operational efficiency by ensuring full shift coverage.

By tackling the transport challenge, Zeelo empowers grocery retailers to future-proof their workforce and improve productivity in an industry where reliability is key.

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Ready to Overcome Labour Shortages?

If your grocery business is struggling with staffing shortages due to transport challenges, Zeelo can help. Get in touch today to explore how a customized shuttle program can improve workforce reliability, retention, and productivity.

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