Marvin OnumonuResearch from WorkJam found retailers are now prioritising cost control over employee experience due to rising labour costs and operational pressures.
The survey showed a shift in workforce strategy, with 37% of retail professionals focusing on cost control and only 5% keeping employee experience as a priority.
In 2025, employee engagement was the main challenge for the sector’s frontline workforce.
Following higher National Insurance contributions and the rise in the National Minimum Wage, 44% of retailers are reducing or slowing hiring, while 29% are raising prices.
In 2025, 62% expected price increases and 59% anticipated redundancies.
Mark Williams, managing director EMEA at WorkJam, said: “This is one of the sharpest and most risky strategic reversals we have seen in the sector in recent years.
“The pressure retailers are facing is real, but deprioritising employee experience is a short-term reaction that will negatively compound over time.
“The challenge for retailers is finding ways to reduce costs and simplify operations without losing focus on frontline engagement.”
Williams added: “With the right platform strategy, retailers can consolidate their tech stack while also improving the employee experience.
“Frontline operations platforms are becoming increasingly important as retailers look to simplify operations without creating additional friction for employees.
“By bringing together scheduling, communication, task management and learning into a single platform, retailers can reduce the complexity and costs associated with fragmented systems, while also creating a more connected and engaging experience for frontline teams.”
He said: “The retailers that will be most successful are those recognising that operational efficiency and employee experience are closely linked, not competing priorities.”
