Most retailers have had wage growth exceed sales growth over the past five years. The wage cost challenge will continue and retailers will need to explore labour productivity improvements. In Issue 11, of Retail Mosaic we analyse labour productivity and benchmark the ASX-listed retailers. JB Hi-Fi and Nick Scali are already world-class. Bunnings, Dusk, Nick Scali UK and Woolworths are all retailers we have identified where labour productivity upside should support profit margins. Retailers will install more self-checkouts, electronic shelf labels and supply chain automation to help lower wage costs over the next five years.

If the Australian economy has a problem with poor productivity, how can retailers play their part in lifting productivity? In Issue 10 of The Retail Mosaic, we analyse the key measures of floor space and marketing productivity across major Australian retailers. We assess their performance over time and against local and global peers. Our preferred measure of productivity is gross profit per square metre (sqm). Some retailers stand out with impressive levels of productivity such as GyG and Peter Alexander. Lovisa and Chemist Warehouse have impressive gross profit per sqm compared with global peers which explains their international ambitions. Retailers that should be able to lift gross profit per sqm include Big W, Bunnings, Dusk, Coles and Woolworths.