How Retailers Can Survive the Rising Minimum Wage

A higher minimum wage – in some cases, as much as $15 an hour – is a certainty. How can businesses, especially retailers, cope with it? The minimum wage is rising fast, mandated by new laws at the federal, state and local levels. Some retailers are voluntarily raising their own workers' wages, either because they consider the move inevitable, or are looking to polish their brand. They might have even come to the realization that there's a price to be paid for low wages, in the form of high turnover, low productivity and inadequate talent. Voluntary or not, retailers are facing mandated wage increases of between 30 and 40 percent, only a small portion of which can be recovered through higher prices. On this episode, we talk with Deniz Caglar, a principal with PwC's Strategy practice. He shares some strategies that companies can adopt to offset higher wages, and remain profitable. Bottom line: They'll be forced to question their entire business models, and look at operations – including the extended supply chain – holistically.