How retailers are hiring for different market models

It’s no secret that the market models of retailers have been evolving fast in recent years. The pandemic has driven a meteoric rise in e-commerce, direct-to-consumer (D2C) models have become widespread, and online marketplaces have begun to dominate the sector.

All this is having major impacts on recruitment in retail. Candidates with the skillsets to help companies succeed through specific market models in this fast-changing landscape are more valuable than ever. Employers, meanwhile, are having to work hard to attract the top talent they need to compete, whether through brick-and-mortar, D2C, marketplace, or omnichannel models.

In this article, we discuss the market model trends that are redefining retail, and how they impact hiring both for top talent, and employers looking to hire.

How talent needs are evolving in retail

Retailers sell their products through a range of different channels. Value-end retailers focus on traditional brick-and-mortar channels, sometimes employing a concessions model whereby two brands sell within a single retail space. Brands which rely more heavily on bricks-and-mortar set-ups are still likely to prioritise traditional retail roles, like buyers and merchandisers.

However, in the current landscape most brands are more focused on expanding their e-commerce capabilities. For example, the direct-to-consumer model - whereby a company advertises and sells its goods directly to consumers without the involvement of a ‘middleman’ like a distributor or wholesaler - has become a far more popular option for retailers. Similarly, following the pandemic, the marketplace model, in which the operator processes the purchase made by consumers and the retailers or wholesalers fulfil the purchase, is seeing massive growth.

The growth of D2C and marketplace

Within the D2C model, we are seeing huge demand for customer acquisition and conversion experts. Customer acquisition specialists focus on driving traffic to their site and online channels, increasing organic traffic, and implementing content-first approaches with compelling product promotion and marketing of their products. Key job titles in the acquisition space include PPC (Pay-per-click) manager, SEO manager, and acquisition manager.

Meanwhile, the conversion experts focus on converting on-site traffic into sales prospects through website optimisation and engagement techniques. Many of our clients are expanding this area fast, as conversions are an essential metric to remain competitive in such a crowded market. The new focus on acquisition and conversion has led many performance marketers to reskill for the age of ecommerce and generated high demand among retailers for conversion rate managers and CRO managers.

At the same time, the online marketplace model continues to grow, and we expect it to overtake D2C as a growth area in the near future. This will only accelerate as brand loyalty among consumers continues to wane and price comparison becomes easier. Dave Mann, Operating Director at Michael Page Retail commented:

“The marketplace model is redefining retail, with Amazon leading the pack. In fact, Amazon has become such a cornerstone of the sector that we are seeing retailers focusing specifically on hiring talent with Amazon-related skillsets – knowledge of the algorithm, as well as commerciality and excellent understanding of consumer behaviours.”

At the same time, many other companies are gravitating toward the marketplace model, stocking other companies’ products on their sites for a fee. Candidates that can help companies make that transition are in therefore in enormous demand too.

With so many strategy pivots taking place amid a major talent shortage, it’s no surprise that salaries are rising fast across the board. For the most recent market data on salary growth, check out our 2022 Guide to Salaries and Skills in Retail.

From brick-and-mortar and e-commerce to omnichannel

To create a truly unified customer experience, many top retailers are pursuing a consolidated approach known as omni-channel - a harmonised combination of multiple different channels. In this case, the emphasis is on ensuring that all channels and touchpoints provide the same experience and information to consumers. The information a customer accesses on a desktop should be available to them on a mobile device; it should also then carry through to a brick-and-mortar establishment.

To establish a strong omnichannel proposition, a retailer will require top talent across the board in all its functions. They will need to boost their teams not only with traditional buyer and merchandiser roles but also with digital marketers, e-commerce specialists, designers, and product owners. Candidates with experience across all channels are rare, and thus in huge demand and in a position to command excellent packages from prospective employers.

How to hire top retail talent

Those that are able to work effectively across omnichannel models encompassing brick-and-mortar, D2C, concessions and marketplace channels, are very valuable to employers. However, the retail sector has changed so fast and so dramatically over the last few years that few candidates have skillsets well-rounded enough to optimise all models. However, the most successful brands are not letting this hold them back from hitting their 2022 targets. Instead, they have pivoted their recruitment strategies toward hiring high-potential candidates with the intention of upskilling them.

Patrick Murray, Senior Business Manager at Michael Page Retail, commented:

“With demand for top candidates outstripping supply by such a distance, we have found that our clients have enjoyed the most success by hiring at the mid-management level with direct-to-consumer and e-commerce experience. It is crucial to ensure that your e-commerce team is well-staffed. Many companies are still trying to get by with a one or two-person team – that is no longer feasible in this market.”

If you are a retail professional, especially one with ecommerce, D2C, or marketplace experience, you are in a fantastic position to take the next step in your career with an employer who will give you the opportunity to develop new skillsets. Equally, if you are a retailer needing to grow your team but struggling to find top candidates, there are plenty of options and ways to attract the high calibre talent you need.

At Michael Page Retail, we are placing more skilled specialists than ever with exciting looking to expand and grow. For an introductory conversation with one of our specialist consultants.