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Luxury Retail Job Market Faces Challenges as Wages Stagnate July 06, 2023 (1 comment)
New York, NY--In the face of a labor crunch, luxury retail brands are getting innovative to find and retain employees for their customer-oriented frontline positions. While often regarded as a more prestigious and enduring career than general retail, the sector is feeling the pinch as companies such as Target and Walmart offer increasingly competitive wages.
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According to an Insider report, Glassdoor data reveals that luxury retail associates typically earn a base pay of around $35,000 annually, with an additional $10,000 commission. As customer relationships have expanded from the sales floor to the digital domain, these roles have grown more complex. Sales associates often sell products that could exceed their yearly income.
The report noted that selling high-value items like a $20,000 handbag or a $45,000 necklace requires unique skills different from those used in general retail. Luxury brands are exploring innovative methods, such as using TikTok-style videos in job listings to assess candidates' potential to influence.
As per the report, Gucci, for instance, requires three years of luxury fashion experience and the ability to maintain an organized client book. Dolce & Gabbana sales associates, who sell products like a $45,400 gem-encrusted watch, earn around $37,000 in base pay and $15,000 in additional compensation, Glassdoor data suggests. Gucci's pay structure is similar, with base pay and bonus amounting to $46,800, less than the price of their $49,000 Teddy Bear shoulder bag.
As the industry faces these challenges, some brands, like Nordstrom, are recruiting from sectors such as real estate, where client relationship management and commissions are standard practice.
The report noted that compensation issues persist while training initiatives are in place. With the median wage for Walmart and Target workers at approximately $25,000 per year, Sukeena Rao, co-founder of Luminaire, stated that luxury brands must improve compensation to retain talent long-term.
Learn more in the entire Insider report.