5 changes in retail and what they mean for you in 2023

The retail sector has been transformed in recent years, from the evolution of the traditional high street model and a new focus on sustainability, to the rise and rise of e-commerce. 

These developments have had a major knock-on effect on hiring in retail, elevating the importance of certain key skills sets and changing ways of working. Here, we discuss five key shifts to have hit the retail sector in recent years, and how candidates and employers have been impacted. 

1. The rise of e-commerce in retail

The traditional retail market was rooted in stores, with teams centred around buying and merchandising roles. However, the growth of e-commerce and online shopping has upended this model, both in the way retailers now sell to consumers, and the way they recruit new talent.

Dave Mann, Regional Director at Michael Page Retail commented: 

When companies had minimal online footprints, buyers and merchandisers were regarded as the key roles, and the sector revolved around predictable footfall in stores. E-commerce has totally changed that, and the Covid-19 pandemic ingrained the changes. In the current market, e-commerce professionals are in a strong position.   

The figures speak for themselves. Even before the pandemic made online shopping a necessity for millions of people, e-commerce was enjoying strong growth, rising from 15.4% of total retail sales in May 2017, to 19% in February of 2019. The pandemic drove these figures through the roof however, with e-commerce’s contribution to total retail sales hitting 37.7% in January 2021. 

These developments are here to stay, and retailers are working hard to ensure that their business models reflect consumer demand. Candidates with skills related to e-commerce, meanwhile, are in enormous demand and can increasingly command excellent employment packages. 

2. New in-demand skillsets have emerged 

In this landscape, the importance of a strong e-commerce function and online presence cannot be underestimated. Professionals with relevant expertise, like e-commerce managers and digital marketers, have the capability to take their businesses to the next level, and market leaders are hiring accordingly. 

However, companies have recognised that a human touch is still needed to ensure a connection with consumers. Algorithms certainly help companies show shoppers the right products at the right moments, but retailers still see a huge role for professionals who understand consumer behaviours.

Dave said:

The drive to develop deeper understanding of customer behaviours has opened up numerous new opportunities. For example, a client of ours - a prominent name in fashion - recently hired a cognitive behavioural scientist to better predict what people are going to look at when they enter a store.

The high street hasn’t so much declined as changed, with stores becoming ever more optimised to drive sales and engagement. Professionals with the capacity to make this happen efficiently are in huge demand. 

3. Retailers are changing their models and their priorities 

With so many seismic shifts over the last few years, it should come as no surprise that many retailers have re-evaluated the way they do business – and what issues they should be prioritising. 

One example is the increased collaboration between brands which has become common post-pandemic. Where companies can drive results by collaborating with other organisations in the sector, for instance by delivering another brand’s products or stocking another company’s produce in their own stores, they no longer hesitate to do so. This trend has generated a huge need for professionals with the ability to navigate complex business relationships, like partnership managers, wholesale account managers, wholesale merchandisers and wholesale buyers. 

Along similar lines, necessity has driven a renewed dedication to sustainability initiatives. Recent sourcing controversies among market leaders has demonstrated the need for businesses to bump sustainability to the top of the business agenda. Meanwhile, research from KPMG has found that consumers are flocking to brands which emphasise their commitment to ESG. As a result, demand for sourcing and sustainability professionals has exploded, something which we have experienced first-hand at Michael Page Retail.    

4. There is unprecedented competition for top talent 

The retail sector has seen huge levels of hiring activity in recent years as businesses bounced back from the pandemic. Candidate shortages, however, have left businesses competing with one another for a limited pool of in-demand professionals. This presents a massive opportunity for candidates, who can now leverage their value to command top end packages.

For employers, meanwhile, it has become critical to optimise every element of the hiring process, from advertisement to onboarding. We strongly advise that employers looking to onboard top talent partner with a trusted recruitment partner, one with deep expertise in the sector and a strong network of candidates.

As well as this, ensure you are offering a salary and benefits package which is competitive in the current market. For an in-depth analysis of low, medium and high end salaries for different roles across the sector, check out our 2023 Guide to Salaries and Hiring Strategy in Retail. 

5. Hybrid and flexible working have become key to successful hiring

One of the most significant impacts of the Covid-19 pandemic on the workplace has been the rapid uptake of remote working. This has evolved into ‘hybrid working’, a blended approach whereby employees spend some of their time in an office and some working from home. This model has proven to be extremely popular with candidates across most sectors, and retail is no exception. In fact, many candidates are now unwilling to entertain discussions about opportunities which do not offer flexible or hybrid working. 

As a result, we are seeing that companies which expect candidates to come into the office five days a week are struggling to attract top candidates. Of course, hybrid working serves to benefit employers too. In a market with more vacancies than qualified candidates, one simple and easy way to expand your candidate pool is to enable hybrid working, which will give you access to a national rather than a regional talent pool. 

If you are looking for your next retail role or seeking top talent to help grow your business, reach out to one of our specialist consultants for an introductory conversation.