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Retailers Are Cutting Hours. Who Is Answering Your Phone?

UK businesses are freezing recruitment and cutting staff hours as employment costs rise. Enquiries have not fallen to match. Here is what that gap costs.

James Paulinson3 min read
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Quick answer

As UK employment costs rise, businesses are cutting staff hours while enquiry volumes stay flat. The gap shows up as unanswered calls and messages at exactly the moments customers are deciding. Capturing and triaging those enquiries automatically is usually cheaper than staffing the quiet hours, provided there is a clear route to a person.

UK retailers are freezing recruitment and cutting staff hours as employment costs rise, and 84 per cent of retail finance leaders now rank labour costs among their top three concerns, up from 21 per cent in mid-2025. Enquiry volumes have not fallen to match. The difference between the two shows up as unanswered calls and messages, usually at the times customers are actively deciding.

This is not an argument for replacing the people who answer the phone. It is an argument for making sure an enquiry that arrives when nobody is free still gets captured, acknowledged and routed.

What does an unanswered enquiry actually cost?

The cost is not the call. It is the position in the queue.

Research on lead response consistently finds that the business which responds first wins a disproportionate share of the work, and that the advantage decays in minutes rather than hours. For a service business, an enquiry that goes unanswered until the next working day is usually competing against two or three responses that arrived the same afternoon.

Three costs, in the order they are usually felt:

  1. The lost enquiry. The customer goes elsewhere, and you never know it happened.
  2. The repeat contact. The customer calls again, so one enquiry consumes two slots of staff time.
  3. The reputation cost. Unanswered contact is one of the most common triggers for a poor review, and reviews outlive the enquiry by years.

Why the quiet hours are the expensive ones

Most SMEs staff to average demand, which means the phone is covered during the middle of the day and not at the edges. The edges are where a large share of enquiries arrive: early morning before someone starts work, lunchtime, and the hour after five.

At a fully loaded cost of roughly £16.50 an hour on the April 2026 wage floor, extending coverage by three hours a day across a six-day week costs around £250 a week before any margin. That is often more than the enquiries in those hours are worth, which is exactly why the hours go uncovered, and exactly why automated capture is the sensible answer rather than more shifts.

What good enquiry capture does, and what it must never do

Should do Should never do
Acknowledge immediately, and say when a person will reply Pretend to be a person
Capture name, contact, and what they actually want Interrogate the caller with a long form
Answer genuinely simple questions such as opening hours Guess at price, availability or advice
Route urgent enquiries to a person straight away Trap someone in a loop with no way out
Log the enquiry against the customer record Lose the context when a person picks it up

The last row is the one that decides whether staff accept the system. If a colleague has to ask the customer everything again, the automation has added a step rather than removed one.

A test worth running before you buy anything

For two weeks, log every enquiry that arrives outside staffed hours: the channel, the time, and whether it was answered by the next working day. Most businesses are surprised by the volume, and the exercise gives you the baseline to judge any change against.

Then decide in this order:

  1. Can any of these enquiries be prevented entirely, for example by publishing the answer clearly on the site?
  2. Of what remains, how many need a person, and how quickly?
  3. Only then, what should capture the rest?

Question one removes more work than any automation. A significant share of out-of-hours enquiries are questions the website could have answered.

Where this fits with the rest of the business

Enquiry capture is worth doing on its own, but it compounds when the captured enquiry lands somewhere useful. An enquiry that arrives at 9pm and sits in a separate inbox is only slightly better than a missed call. The same enquiry attached to the customer record, with a follow-up task on it, is a job that gets done.

Frequently asked questions

How quickly do customers expect a reply to an enquiry?

Faster than most businesses assume. Lead response research consistently shows a steep decline in conversion once the response takes more than a few minutes, because the customer is usually contacting several suppliers at once and the first useful reply sets the agenda.

Is an automated first response worse than no response?

Only when it cannot escalate. An acknowledgement that captures the details and says when a person will respond is better than silence. A system that loops a caller with no route to a human is worse than silence, because it consumes the customer time as well.

What should never be answered automatically?

Anything involving price, availability, advice or a complaint. Those depend on facts that change or judgement that a person needs to apply. Automated systems should capture the question and route it, not attempt an answer they cannot stand behind.

How do I measure whether enquiry capture is working?

Baseline the number of enquiries arriving outside staffed hours and how many receive a reply by the next working day. Measure the same two figures a month after the change. Response rate and time to first reply are more useful than call volume, which can rise for unrelated reasons.

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JP

James Paulinson LinkedIn

Co-Founder, SMEAutomate

James Paulinson is the co-founder of SMEAutomate. With two decades across advertising, technology, and consulting, he focuses on helping boutique businesses and founders scale with AI-powered workflow automation.

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