Why Leading Grocers Are Struggling to Find Workers?

The grocery sector in the UK is grappling with significant labour shortages, making it increasingly challenging for major grocers/supermarkets to hire and keep employees. Rising labour costs, changing consumer behaviours and the loss of free movement post Brexit have all contributed to a decrease in the number of available workers. This in turn has led to disrupted supply chains and operational challenges, ultimately impacting the bottom line for many businesses. 

What are the key reasons behind the grocery labour shortage?

As the industry strives to maintain adequate staffing and keep shelves stocked, grocers face a complex array of challenges that are reshaping the grocery workforce.

Economic policy changes are driving up supermarket costs

While supermarkets and grocers typically operate on very slim profit margins, recent economic shifts have further exacerbated (already increased) labour costs. Several factors are now complicating grocer ability to maintain sufficient staffing levels.

The increase in National Living Wage and NI contributions are on the rise, with wage increases fast outpacing revenue growth. Such hikes have placed a heavier financial burden on grocers who are already struggling with new tax levies imposing billions in additional costs, compelling many supermarket chains to reduce their workforce or restructure in a bid to remain financially solvent.

Brexit and Covid-19 have reduced the workforce

The fallout of Brexit (and the loss of free movement), coupled with the wake of the pandemic have significantly decimated the grocery labour pool, leaving supermarkets and leading grocers unable to fill open positions. Post-brexit immigration restrictions have led to a 40% decline in EU nationals employed across grocery retail and supply chain roles, further exacerbating an already difficult recruitment landscape.

Alongside this, the pandemic forced grocery workers to endure long hours, job insecurity and increased health risks, all to keep shelves stocked and food on the table. Such conditions lead many to reconsider their career paths, with many choosing to leave the industry entirety in  search of better opportunities. 

Structural changes & increased competition for talent

Grocers and supermarkets are often competing for workers with other industries that seemingly offer better pay and working conditions, compounding an already difficult hiring challenge. This is particularly true of the hospitality sector, which employs a similar workforce with overlapping skills in customer service, stock handling and logistics though offers a more flexible working environment, better pay and career opportunities than grocery can. 

The booming rise of online grocery shopping has led to heightened investment in fulfilment centres, warehouse and distribution networks at the expense of in-store roles. While this represents a great opportunity for upskilling and internal mobility, when done right, headcount is being reduced in physical stores to shift labour towards logistics or tech driven roles.

Worker dissatisfaction is fueling high turnover

Despite salary adjustments being made, many in the grocery space feel less recognised and incentivized than similar roles in other industries; with growing frustrations around long shifts, unrealistic workloads and minimal benefits. Reports of mismanagement, lack of career growth and mounting pressure have tarnished the appeal of jobs within the industry, making the grocery sector, for some, a last resort rather than a desirable career choice.

Staff shortages are disrupting grocery operations

Grocers are struggling to keep supply chains running smoothly and shelves stocked, particularly during the busier Summer peak and Christmas season. Reduced staffing levels are leading to frequent supply disruptions, late deliveries or empty shelves. This has a knock on effect on checkout times, customer experience and in-store service with many supermarket chains being forced to reduce hours or limit services due to insufficient staff availability.

How to address the labour crisis across the grocery sector

To overcome labour shortages, grocery retailers must rethink their workforce strategies and improve job attractiveness. Some potential solutions include:

Offering competitive pay/benefits – Supermarkets must benchmark wages against competing industries and introduce better incentives like performance bonuses, flexible schedules, and enhanced job security.

Investing in technology/automation – Leveraging self-checkout systems, AI-driven stock management, and automated fulfilment solutions can help reduce reliance on manual labour while improving efficiency.

Enhancing employee experience & career growth – Providing clear career progression pathways, skill development programs, and management training can improve retention and attract new talent.

Strengthening employer branding – Grocers should focus on improving workplace culture, showcasing employee success stories, and actively promoting retail careers to shift industry perceptions.

Lobbying for government support – Grocers must advocate for policy changes that address Brexit-related workforce shortages, including targeted visa programs for retail and supply chain workers.

The UK grocery sector is grappling with one of the toughest labour markets in recent history, as rising costs, post-Brexit workforce reductions, and industry-wide structural shifts make hiring and retention increasingly difficult. Competition from other sectors, alongside worker dissatisfaction and operational inefficiencies, has left supermarkets struggling to maintain adequate staffing levels. To stay competitive, grocers must rethink their workforce strategies, investing in technology, career development, and improved working conditions to attract and retain essential talent. Only by addressing these challenges head-on can the industry build a more resilient, future-proof workforce.

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