The holiday rush is here, but for retailers, the real scramble is happening behind the scenes. In his latest Insights@Questrom Q&A, Greg Stoller, Master Lecturer of Strategy and Innovation, takes a closer look at how retailers are preparing for one of the most critical, and increasingly unpredictable periods of the year: the holiday shopping season.
Historically, holiday operations have relied on well-established forecasting models, stable labor pools, and predictable consumer behavior. But today’s retail environment looks markedly different. Retailers are navigating a landscape shaped by shifting economic conditions, supply chain disruptions, labor shortages tied to policy changes, and evolving customer expectations around both in-store and online experiences. Against this backdrop, Stoller examines how companies are adjusting their staffing strategies, what’s at stake when seasonal hiring falls short, and how retailers can maintain service quality and customer satisfaction even with leaner teams. His insights shed light on the operational pressures facing brick-and-mortar stores this year, and the practical steps leaders can take to adapt without sacrificing the human-centered experience that defines in-person shopping.
1. How do retailers typically forecast demand for the holiday season, and what operational strategies do they use to determine staffing levels?
Most retailers rely heavily on year-over-year comparisons, looking at past staffing levels, inventory positions, and sales patterns. However, traditional forecasting tools are far less reliable today. A range of external pressures, including tariffs, employment disruptions (such as those tied to deportation-related labor shortages), and a softening consumer base, have made historical benchmarks increasingly difficult to apply with confidence.
2. What are the potential consequences for service delivery, logistics, and customer experience when companies scale back or delay seasonal hiring?
This scenario represents every brick-and-mortar retailer’s worst nightmare. These companies depend on in-person traffic to justify their physical presence and the rent they pay. If they lack sufficient staff, customers face longer wait times, leading to heightened frustration and an increased likelihood that shoppers will opt to move their purchases online instead.
3. How can companies balance cost savings from limiting temporary staff with the risk of lower efficiency or customer satisfaction?
The only silver lining is that this challenge is concentrated within a relatively short window, roughly a six-week period from Black Friday through the first week of January, when most post-holiday returns are processed. This limited timeframe may make the trade-offs more manageable, even if they remain difficult.
4. What strategies or technologies can retailers use to maintain operational performance amid leaner seasonal staffing?
It’s tempting to simply point to AI, and that may play a role, but the real value of in-person retail lies in the human experience. Retailers should double down on efforts to keep customers engaged and feeling valued. This could include small but meaningful incentives such as free giveaways, complimentary coffee, snacks, or other gestures that help customers feel appreciated—particularly when longer wait times are unavoidable.
Beyond that, retailers can lean on smart queue management tools, streamlined mobile checkout options, and proactive communication (like real-time wait-time updates) to reduce friction. Even modest operational tweaks, such as repositioning staff to high-impact areas or using simple automation for repetitive back-of-house tasks, can help stores maintain a smooth, positive experience without relying on a large seasonal workforce.
