Published: 11:10 AM, 09 September 2026
American Department Stores Face High Labour Costs as Migrants Detained
Higher labour expenses come at a difficult moment for American department stores. The sector has already been dealing with changing consumer habits, competition from online retailers and increasing operating costs. Sky News
Major department stores across the United States are facing growing pressure from rising labour costs as the detention and removal of migrant workers disrupts parts of the retail workforce. Store owners and industry analysts say that a shortage of workers is making it increasingly difficult to maintain staffing levels, while wages and recruitment expenses continue to rise.
Department stores rely heavily on a large workforce to operate their sales floors, warehouses, delivery services, cleaning operations and customer-support desks. Migrant workers, including both documented and undocumented employees, have historically formed an important part of the labour force in several sectors of the American economy. Their absence is now being felt by businesses struggling to fill vacant positions.
The situation has become particularly challenging for retailers operating in large cities and areas where labour shortages were already affecting the industry. Store managers say that finding replacement workers can take considerable time and often requires offering higher wages, additional benefits or signing incentives.
Higher labour expenses come at a difficult moment for American department stores. The sector has already been dealing with changing consumer habits, competition from online retailers and increasing operating costs. Many traditional retailers have closed stores or reduced their physical presence in recent years as shoppers have shifted toward e-commerce.
“Labour is one of our largest operating expenses,” said one retail executive, speaking on condition of anonymity. “When experienced workers leave suddenly, we have to spend more money recruiting and training replacements. That ultimately puts pressure on the entire business.”
The detention of migrants has also raised concerns among labour advocates and community organisations. They argue that aggressive immigration enforcement can have consequences beyond the individuals directly affected. Families may lose their main source of income, while businesses may lose workers who have gained valuable experience over many years.
Retail employers say that the uncertainty surrounding immigration enforcement makes workforce planning more difficult. A worker who has been employed for years may suddenly become unavailable, forcing a store to redistribute responsibilities among existing employees.
In some cases, employees may be required to work longer hours, increasing overtime costs and contributing to workplace fatigue.
Economists say the effects could extend beyond department stores. If labour shortages become widespread, businesses may raise prices to compensate for higher wages and recruitment costs. Consumers could therefore face more expensive goods and services at a time when household budgets are already under pressure.
However, supporters of stricter immigration enforcement argue that businesses should not depend on undocumented workers. They say stronger enforcement could encourage employers to hire American citizens and workers with legal employment status. Some also contend that reducing the supply of unauthorised labour could eventually encourage higher wages for workers legally employed in the United States.
Retail groups, meanwhile, are calling for clearer and more predictable labour and immigration policies. They say businesses need to know whether employees can remain in their jobs so that they can make reliable decisions about hiring, training and investment.
Some department stores are responding by investing in technology. Self-checkout systems, automated inventory management and artificial intelligence-powered customer-service tools are being introduced to reduce dependence on large numbers of employees. Yet industry experts caution that technology cannot completely replace workers, especially in areas requiring personal customer assistance.
Smaller retailers may face an even greater challenge because they generally have fewer financial resources to absorb higher wages or invest in automation. Large chains may be able to increase salaries and benefits, while smaller stores could struggle to compete for workers.
The issue also highlights the complicated relationship between immigration and the American economy. Migrants contribute labour in many industries, while immigration enforcement remains a politically sensitive subject. Balancing workplace needs, legal requirements and humanitarian concerns is likely to remain a major challenge for policymakers.
For department stores, the immediate concern is maintaining reliable staffing without allowing labour expenses to damage already narrow profit margins. As retailers prepare for an increasingly competitive market, the availability and cost of workers could become just as important as consumer demand.
Industry observers say the coming months will reveal whether retailers can adapt through higher wages, automation and improved recruitment strategies. Until then, department stores are likely to remain caught between two pressures: the need for workers and the rising cost of finding them.
The debate over migrant detention therefore extends far beyond immigration policy. It is also becoming an economic issue, affecting businesses, employees, consumers and communities across the United States.
