What: A handful of retail companies have laid off employees so far this year, fueling concerns that retail could be the next sector to be hit hard by layoffs.

Why it is important: Retailers need to recalibrate and manage costs to be more in line with softening revenues as the retail industry could be next to see layoffs.

Over the past week, Saks.com, TheBay.com, and Kohls laid off corporate employees. As consumers spend less on merchandise due to inflation, retailers are under margin pressure as they discount product to reduce inventory and fight price resistance.

A survey of 300 senior retail executives revealed that over the next year, 20% are expecting to trigger layoffs. However, some retail experts have stated that the tech sector layoffs aren’t an indication of what will happen with the retail industry.

While layoffs are still expected to occur, companies should focus on performance and efficiency while optimizing what they already have rather than expansion. Retailers should also use what they learned during the pandemic to help in their strategies and plans.

At retail, pink slips start to surface