Andrew Harper, CEO at Anchor Group Services, explains why innovative facilities management strategies can play a crucial role in offsetting rising costs while maintaining efficiency, safety, and customer satisfaction in retail settings.
The UK retail sector is at a crossroads. With the upcoming increases in National Insurance contributions and the National Minimum Wage, businesses face significant financial strain. Retailers must make tough decisions to remain competitive, but simply cutting back on labour is not a sustainable long-term strategy.
At Anchor Group Services, we believe that innovative facilities management strategies can play a crucial role in offsetting these rising costs while maintaining efficiency, safety, and customer satisfaction.
The cost challenge
Retailers are already reacting: a recent British Retail Consortium survey found that two-thirds of UK retailers plan to raise prices in response to rising costs. Others are considering staff reductions or automation. But these reactive measures can quickly erode customer experience and brand loyalty.
The key is to take a smarter approach. One that prioritises operational efficiency without compromising service.
Smarter facilities management strategies
1. Smart technology for smarter savings
Modern FM harnesses technology to reduce costs and enhance performance:
- Energy management systems: Automated lighting, heating, and cooling based on real-time occupancy can yield major savings on utilities.
- Smart cleaning: Sensor-based cleaning adjusts frequency based on usage, reducing wasted labour hours.
- Security automation: AI-driven surveillance and remote access systems reduce the need for on-site security personnel while improving safety.
These innovations are already proving successful in retail environments where uptime, hygiene, and safety are critical.
2. Integrated services = Streamlined operations
By outsourcing to an integrated FM provider, retailers can consolidate cleaning, maintenance, and security into one contract, thereby simplifying oversight and boosting cost efficiency.
Benefits include:
- Reduced admin costs: One contract, one point of contact.
- Eliminated duplication: Services are optimised across departments.
- Scalable solutions: Easily adjust resources for peak seasons or store expansions.
- Consistent quality: Uniform service standards across all sites.
This model not only reduces overhead but ensures greater operational cohesion.
3. Workforce optimisation without redundancies
Rather than cutting jobs, FM providers can improve workforce productivity through smarter deployment and training:
- Cross-training: Security staff trained in customer service, or cleaning teams skilled in basic maintenance, help stretch resources without hiring more staff.
- Dynamic scheduling: Data-driven staff schedules match demand, reducing idle time.
- Employee engagement: Investment in training and wellbeing leads to better retention. At Anchor, our retention rate is 20% above the industry average, thanks to a strong culture of empowerment and development.
4. Sustainable FM for long-term gains
Sustainability in FM isn't just good for the planet - it’s also a smart cost-saving measure:
- Energy efficiency: LED lighting, smart HVAC systems, and renewables lower utility bills.
- Waste reduction: Recycling and composting cut disposal costs and support ESG goals.
- Eco-friendly cleaning: Reduces health risks and sick days while lowering chemical expenses.
Retailers are increasingly judged on their environmental practices. Sustainable FM aligns cost reduction with consumer expectations.
The future of retail facilities management
With rising wage costs and increasing National Insurance contributions, retailers must look beyond traditional cost-cutting methods. Facilities management, when strategically leveraged, provides a powerful tool to mitigate financial pressures without sacrificing customer experience or operational efficiency.
As founder and CEO of Anchor Group Services since 1990, my priority and commitment is to help retailers navigate these challenges with innovative, tailored FM solutions. By embracing smart technologies, integrating services, optimising workforce deployment, and implementing sustainable cost-saving measures, retailers can turn these challenges into opportunities for greater resilience and profitability.
Retailers who adapt and innovate today will not only survive but thrive in the evolving economic landscape. The question is not whether to change, but how quickly businesses can embrace smarter, more efficient ways of operating.
