NRF 2025: Operational Efficiency – The Biggest Challenge in Retail Today (But Not the Only One)

Retail today is facing an era of unprecedented change. With evolving customer expectations, rising operational costs, and a complex regulatory landscape, retailers are under immense pressure to adapt and thrive. 

At NRF 2025 in New York, Orquest connected with industry leaders to explore the most pressing challenges retailers face today. When asked, “What is the biggest challenge in retail today?”, the responses were evenly spread across key areas: operational efficiency, customer experience, employee well-being, and regulatory compliance. However, the most pressing concern that emerged was operational efficiency.

The Growing Demand for Operational Efficiency

Retailers are constantly striving to optimize operations while balancing cost control and service excellence. From managing store needs to scheduling staff, inefficiencies can lead to increased costs, lost sales, and dissatisfied customers. With rising labor costs, the complexities of omnichannel operations, and ever-changing consumer demand, staying efficient has never been more challenging.

Outdated processes, lack of accurate data insights, and manual scheduling systems often hinder efficiency, making it difficult to adapt to changing store dynamics. Retailers who fail to address these inefficiencies risk losing their competitive edge.

How Orquest Empowers Retailers

As a leader in AI-driven workforce management, Orquest provides retail today with the intelligent scheduling solution it needs, to ensure the right employees are in the right place at the right time. By leveraging advanced analytics and AI-powered forecasting, it predicts demand precisely and calculates their real operational needs to help retailers optimize staffing and boost efficiency, while reducing unnecessary labor costs and enhancing service levels.

With Orquest, retailers can:

• Cut labor costs by up to 5% by eliminating inefficiencies in workforce scheduling.
• Boost employee productivity by aligning staff schedules with store traffic and customer demand.
• Save valuable time by automating scheduling processes, allowing managers to focus on strategic goals.

Addressing Other Major Challenges in Retail Today

While operational efficiency is a top priority, retailers must also navigate other key challenges that impact their success: customer experience, employee well-being, and regulatory compliance.

Enhancing the Customer Experience

Today’s customers demand seamless shopping experiences across all channels, while physical stores remain the backbone of retail today. However, long wait times, understaffed stores, and inconsistent service can lead to lost sales and diminished loyalty. Managing customer expectations while optimizing workforce allocation is no easy task.

How does Orquest solve it?

Orquest helps retailers anticipate peak hours and ensure stores are adequately staffed to provide exceptional service. By accurately predicting demand and aligning staff schedules accordingly, it drives positive customer experiences, leading to higher satisfaction and repeat business.

Prioritizing Employee Well-being

Retail employees often face unpredictable schedules, long hours, and demanding workloads, leading to burnout and high turnover rates. Employee dissatisfaction can negatively impact productivity and service quality, making it crucial for retailers to prioritize well-being.

How does Orquest solve it?

Orquest empowers employees by creating fair and balanced schedules that consider availability, preferences, and workload. It ensures compliance with break times and labor laws, fostering a healthier work-life balance and improving overall job satisfaction. Happier employees lead to better customer interactions and stronger business performance.

Navigating Regulatory Compliance

Retail today operates in a complex regulatory environment with strict labor laws, union agreements, and company policies that must be followed to avoid penalties and reputational damage. Ensuring compliance while maintaining operational efficiency can be a daunting challenge.

How does Orquest solve it?

Orquest simplifies compliance by integrating all regulations into the scheduling process. From managing different contract types to guaranteeing fair scheduling practices, Orquest helps retailers stay compliant with ease. This allows businesses to focus on growth while minimizing legal risks and operational disruptions.

Why Retailers Trust Orquest

Orquest’s AI-powered retail scheduling solution is trusted by global retailers like H&M and Dior. With a proven track record of improving operational efficiency, reducing costs, and enhancing both employee and customer experiences, Orquest stands as the preferred choice for retailers looking to stay ahead in today’s fast-paced market.

In retail today, operational efficiency is key to success, but it’s only part of the equation. A holistic approach that also prioritizes customer experience, employee well-being, and regulatory compliance is essential for long-term growth. With Orquest, retailers can confidently navigate these challenges and shape a future that’s efficient, customer-centric, and innovative.Contact the Orquest team today to learn how we can help you achieve your goals.