ERTC Strategies for Retailers with Shifting Sales Trends?
Over the past few years, retail businesses have been hit hard with the COVID-19 pandemic. Now, retailers are facing the additional challenges of rising interest rates, higher costs of goods, and consumers with less discretionary spending.
The Employee Retention Tax Credit (ERTC) — a federal program offering financial relief to businesses affected by COVID-19 — may provide some help. If your company qualifies, you may be eligible for a credit of up to $7,000 per employee per quarter for 2021 ($5,000 for 2020). This means ERTC for retail can give your business the cash infusion it needs to survive the changing retail landscape.
If you need more information about the ERTC process, the team of qualified attorneys at Dayes Law Firm can assist you. The following tips can help you use your ERTC funds strategically in your retail business.
New Talent Acquisition
Continuing labor shortages coupled with a rising cost of living means businesses must offer higher wages to attract new employees. A competitive compensation and benefits package can help your retail store find the workers it needs during uncertain financial times.
ERTC funds allow you to dedicate resources to a strong employee onboarding experience that gets recent hires up to speed in a positive way. Businesses using these funds to offer higher wages could be why national wages were up 7% year over year in February 2023. Successful onboarding prepares your employees to be effective members of your team while encouraging them to stay with your company for the long haul.
Employee Retention and Engagement
A constant rotation of employees can slow your operations down. It also costs money. Between hiring, training, and getting new workers up to speed, your business uses up valuable resources each time an employee leaves. As consumer spending slows in 2023, holding on to your current workers can help cut the costs of hiring new talent and protect your bottom line.
While financial incentives encourage your staff to stick around, so can other employee engagement strategies. You may seek to offer continuous training and development so your workers keep learning and don’t become bored.
Your business can also use ERTC funds to improve retail employee retention in other ways, like implementing incentive programs, promoting team spirit, and seeking employee feedback.
Sales Channel Expansion
Americans’ shopping habits have changed dramatically in recent years. A strong online presence is a must, but it doesn’t stop there. If your business needs to improve its e-commerce or branch out into Instagram sales, the ERTC for retail can free up cash for new initiatives.
Forward-thinking businesses are experimenting with more advanced technology like virtual reality, where customers can try on clothes or experiment with new hair colors before making purchases. Other retailers are expanding their digital channels to include stores on social media and improved mobile commerce options.
Customer Engagement
Did you know that 86% of consumers want to hear from and engage with the brands they like? ERTC funds can improve your cash flow, allowing you to dedicate resources to improving your retail communication tools.
Modern consumers also expect a personalized shopping experience and seamless interactions across multiple digital channels and devices (websites, apps, mobile, etc). Between increasingly demanding customers and growing e-commerce competition, your retailer’s strategic plan may want to dedicate additional resources to improving customer engagement.
Legal Assistance with ERTC Claims
Applied strategically, the ERTC for retail businesses helps companies adapt to shifting sales trends and economic pressures. If you have any questions about the ERTC claims process, contact Dayes Law Firm at (800) 503-2000. Our dedicated ERTC lawyers are happy to offer free consultations to see how we can help your business.
