Retail employees’ future of work: From registers to reskilling

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  Quantumrun Foresight
• March 17, 2025

Insight summary

Retail jobs are changing as automation, shifting worker expectations, and economic pressures reshape the industry, pushing many employees to seek better opportunities elsewhere. While technology is eliminating repetitive tasks, it is also creating demand for workers with digital skills, problem-solving abilities, and customer service expertise. As companies and governments adjust to these shifts, retail employees may face both new opportunities and growing uncertainty, making it essential to prepare for a resilient workforce.

Retail employees’ future of work context

Retail employment is undergoing significant changes, driven by shifting worker expectations, economic pressures, and advancements in technology. Many retail workers in the US continue to leave the industry at higher-than-average rates, with 72 percent of those who quit in the past three years moving to entirely different fields, according to consultancy firm McKinsey. This trend is largely due to uncompetitive wages, limited career growth, and uninspiring leadership—factors that have grown in importance since the COVID-19 pandemic. Meanwhile, retailers that prioritize employee engagement, career development, and flexible work arrangements are seeing stronger retention rates, highlighting the need for businesses to rethink frontline employment strategies.

As automation and artificial intelligence (AI) take over repetitive tasks, the demand for problem-solving, customer service, and digital literacy skills is increasing. Some retailers are investing in skills certification and career pathways to address this shift, with employees who participate in such programs being four times more likely to stay, according to a McKinsey study. Meanwhile, flexible work options, including better scheduling control and gig-style shifts, are becoming essential for attracting and retaining talent in an industry that traditionally offered little work-life balance.

Retailers that embrace employee-focused strategies are seeing improvements in both workforce stability and customer satisfaction. Companies with highly engaged employees are more than twice as likely to deliver top-tier customer experiences, creating a cycle where satisfied workers drive better business outcomes. Data-driven workforce management is also playing a role, with some retailers using segmentation techniques to tailor career development initiatives and compensation structures to specific employee groups.

Disruptive impact

Technology will reduce repetitive tasks, but workers may need to learn new skills to remain employable. Customer service roles will become more specialized, requiring workers to handle complex issues that AI cannot solve. Employees may also gain greater scheduling flexibility as retailers implement digital scheduling tools and gig-style work models. However, job security could become a concern as automation and changing business models reduce demand for traditional retail positions.

As automation reduces demand for cashiers and inventory clerks, companies may expand training programs to help employees transition to higher-value roles. For example, some retailers are already offering courses in digital skills, customer experience management, and logistics. Companies may also need to revise pay structures to attract and retain skilled workers, as those with specialized expertise will have more job opportunities. Businesses that fail to invest in their workforce may struggle with high turnover and declining customer satisfaction.

Meanwhile, governments may face new policy challenges as retail jobs change. Employment laws may need updates to account for gig-style retail work, ensuring fair wages and benefits for flexible workers. Additionally, workforce development programs may need to shift toward training initiatives that prepare retail employees for technology-driven roles. Tax structures could also change if more retail positions move from traditional employment models to contract or freelance work. 

Implications of retail employees’ future of work

Wider implications of retail employees’ future of work may include: 

• Retail employees relying more on upskilling programs as automation reduces demand for traditional roles, leading to a workforce shift toward technology and customer service expertise.
• More gig-style work models emerging in retail, leading to greater scheduling flexibility but fewer long-term benefits like healthcare and retirement plans.
• Store employees needing to manage both online and in-store sales channels, leading to increased job complexity and the demand for cross-training.
• Higher expectations for retail employees to provide personalized customer service, leading to increased pressure to develop soft skills and sales techniques.
• Retail workers facing increased surveillance through AI-powered performance tracking, leading to concerns over job privacy and workplace stress.
• Fewer entry-level jobs available in traditional cashier and stock roles, leading younger workers to seek alternative first-job opportunities outside of retail.
• Employees in warehouse and fulfillment centers facing increased automation, leading to job displacement but also new roles in managing and maintaining automated systems.
• Retailers offering more career development programs to retain employees, leading to a shift toward internal promotions rather than external hiring.
• Increased reliance on digital tools for retail work, leading to a greater divide between tech-savvy employees who advance and those who struggle with new systems.
• Governments introducing new labor laws to address automation-driven job losses, leading to potential wage subsidies or retraining initiatives for displaced retail workers.

Questions to consider

• How could changing job structures in retail affect your local economy and community workforce opportunities?
• How can retailers make frontline jobs more appealing and sustainable for future workers?