Why Are Retail Workers Leaving? 

Answering Your Biggest Questions on Absenteeism, Hiring, and Retention

The retail sector in the UK stands at a critical turning point. With surging turnover rates, rising absenteeism and persistent hiring challenges; retailers are facing an unprecedented battle to maintain a stable and settled workforce. Understanding the reasons behind the trends will be the first stage in addressing them.

What’s driving high turnover in retail?

The retail industry is experiencing an alarming increase in staff turnover. In 2024, over 56% of retail employees reported wanting to leave their jobs, a sharp increase from 49% in 2023. For staff working in larger retailers, 31% report wanting to leave the industry altogether. 

These numbers highlight a growing discontent that, if left to fester, would continue to destabilise the industry. There are several key reasons that contribute to retail workers’ decision to leave:

Low pay - An increased salary is the primary reason for job changes within the industry, with 46% of retail employees looking to find better wages elsewhere.

Lack of recognition - Employees are feeling undervalued and underappreciated by both their employers and the communities they serve, with 41% reporting that they don't feel valued by management.

Declining wellness - 84% of retail employees report a decline in their mental wellness over the past year, with verbal and physical abuse from customers cited as a major pain point, with increasingly hostile working environments becoming more prevalent.

Fear of redundancy - 24% of UK retail staff have reported negative feelings around the use of technology in their roles, fearing increased workloads or job loss from the rapid adoption of retail automation and self-checkout systems.

What does absenteeism really cost?

Unexpected absences don’t just disrupt operations, but create a ripple effect that impacts customer experience and store performance. Absenteeism in retail is one of the leading causes of customer satisfaction, lost sales and increased operational strain.

Around 63% of retail managers in the UK believe that poor employee engagement is a major driver of absenteeism.

46% of teams reported struggling with low employee morale when shouldering additional workloads from covering absent colleagues.

What are the hiring challenges & opportunities in retail?

The job market across the retail sector is a real mixed bag. On the one hand, upwards of 200,000 jobs are at risk due to automation and economic shifts. On the other hand, despite job losses, IMF predictions of 1.5% growth in the UK economy could create additional employment opportunities, yet the transition to clean energy risks shifting the workforce away from retail; with the energy sector set to create between 135,000 and 725,000 new jobs and facilitating mass departures from the industry.

How can retailers improve retention?

With absenteeism and staff turnover at record levels, retailers are forced to rethink their workforce strategies, with leading companies addressing the crisis by:

Prioritising a healthy work/life balance - Over 62% of retailers acknowledge that burnout can be reduced and productivity can be increased with simple measures designed to improve work/life balance; flexibility in shifts being one of the easiest fixes to implement.

Making an investment in upskilling - Training and career development to retain existing employees rather than expanding headcount can help employees feel valued and provide a sense of direction to workers who might otherwise feel trapped in low-paying dead end careers.

Providing mental health support - Retailers are being urged to invest in mental health initiatives to support employees (with younger employees most affected), ensuring that the workforce has the tools and support they need to cope with the added strain a job in retail can create.

Addressing concerns around technology - It’s important that employers understand the additional stress or sense of job insecurity that digital transformations can lead to and take steps to mitigate the worry by ensuring that the integration of technology benefits employees rather than replaces them.

What is the future of retail employment?

The future of employment in the retail industry will be shaped by automation, evolving job roles and economic downturns. By 2030, it is expected that up to a third of retail tasks could be automated; reducing the need for more traditional roles yet creating demand for a tech-savvy workforce. Employees will be expected to shoulder additional responsibilities, but on flexible contracts that, while improving efficiency, contribute to higher stress and turnover. In response, workplace well-being is becoming a growing concern, with retailers making investments in wellness and mental health initiatives to support improved retention. 

Economical pressures and the rise of e-commerce have led to significant job losses in brick and mortar stores, prompting calls for fairer regulations and employment practices.

Retailers are at a pivotal crossroads, with growing turnover, absenteeism and recruitment challenges creating an urgent need for change across the sector. While technology and economic shifts threaten long term job security and stability, they also present opportunities to cultivate a more skilled and resilient workforce. The evolution of the industry will be shaped by how well businesses adapt; by prioritising wellbeing, driving career growth and development, and integrating tech in a way that empowers employees rather than displaces them. Retailers who make an investment in their people today will be the ones that thrive tomorrow; building a more engaged, stable and future proofed workforce.