Apple is planning to test a hybrid in-store and work-from-home arrangement for its retail employees later this year, an acknowledgement that even as consumers return to shopping in person, digital demand will likely remain high.
The pilot program, called “Retail Flex” and first reported by Bloomberg, will begin with a small number of store employees who will work some weeks at their retail store and other weeks remotely. From home, workers will be tasked with handling online sales, customer service and technical support.
All Apple stores were reopened as of June 14. The technology giant has retail locations in 44 states, plus one store in Washington, D.C.
At the height of the pandemic, when Apple was forced to close its stores, many retail employees were tasked with remote work to manage online sales and customer support. In this way, the Retail Flex program is just a continuation of that practice.
Apple is reportedly asking employees in the pilot program to participate for at least six months, ramping up the arrangements from September to December, typically a busy time for the company as it releases a slate of new products.
The company will reimburse those participating in the Retail Flex program for some internet expenses and $100 toward office equipment, and employees will make the same salary no matter their location.
Last month, Apple CEO Tim Cook told corporate employees they should begin returning to offices in early September on at least Mondays, Tuesdays and Thursdays, with office attendance optional on Wednesdays and Fridays.
News of the Retail Flex program comes as brands across the country struggle to find enough staff, with retail workers quitting at record rates for higher-paying work. The U.S. Bureau of Labor Statistics said Friday (July 2) that the retail trade added 67,000 jobs in June, but employment is still down by 303,000, or 1.9 percent, since February 2020.
Retailers are responding to the labor shortage in a number of different ways. Bed Bath & Beyond, for example, is offering new paid benefit programs and has promised employees they won’t work on Thanksgiving Day. Others, such as DSW, are turning to technology, with the shoe chain piloting self-checkout stands in stores, a program it first tested amid COVID-19 health concerns.
Retail Rebirth
Last week, reports emerged that Apple has begun expanding its retail operations based on the belief that the stores will become more popular than ever as the company doubles down on its strategy of in-store events and experiences beyond shopping.
Deirdre O’Brien, Apple’s senior vice president of retail and people, told Reuters the company is “looking at this moment right now as a way to really begin again, and begin again in every way.”
Apple achieved a $2 trillion market capitalization during the pandemic, selling record numbers of iPhones and other products. One of its weak spots, however, was a decline in sales of AppleCare, a device insurance plan that employees can upsell in stores but is harder to press online.
Cook told investors and analysts in April that the company sees “a lot of benefit from our stores when they’re open and are fully operational,” especially in accessories, which accounted for 10 percent of Apple’s net sales in the six months in the first half of its fiscal year, which runs from October to September.
The CEO added, though, that “online has been much more beneficial and much more productive than we would have guessed” going into the pandemic.
Apple has also committed to boosting its investment in the U.S. to over $430 billion over the next five years and plans to bring 20,000 new jobs to the country. The iPhone maker currently supports over 2 million jobs across all 50 states, though the majority are attributable to the company’s App Store ecosystem.