As retail continues to change, so will jobs in the industry in order to adapt to new realities such as the national living wage.
Loyalty is a quality much-valued in our industry. A substantial proportion of the UK’s three million retail employees have invested much of their careers with one employer.
And, of course, retailers are striving for the holy grail of customer retention and loyalty.
Over the past decade, I’ve witnessed tumultuous changes in the overall social, political and economic environment.
No retail business has been immune from the pace or depth of these changes. Ten years ago, Tony Blair was Prime Minister, the world economy was booming, interest rates were close to 5% and online retailing was in its infancy.
Today, interest rates have been just above zero for seven years, we’ve experienced a financial crash, and the online revolution is infiltrating every aspect of our lives.
Modern issues
Our industry faces some profound issues. In its recent Retail 2020 report, the BRC highlighted some of these.
The view was expressed that by 2025 there could be 900,000 fewer jobs in retail. Launching the report, Sir Charlie Mayfield, chairman of the John Lewis Partnership, suggested that although there may be fewer jobs, there will be more productive and higher earning jobs.
The retail sector does provide scope for skills enhancement and career progression.
Retailers are no strangers to the power of innovation. In 1884, M&S introduced a ground-breaking formula of attractively priced quality products, backed by a ‘no quibble’ personal service.
Leo McKee
Many individuals who are lifelong retailers clearly enjoy their jobs and their interaction with others. Similarly, more than a few top executives have a track record which has taken them from the sales floor to the boardroom table.
Today, retail needs to be innovative, and responsive to the evolving patterns of consumer behaviour.
Retailers are no strangers to the power of innovation. In 1884, M&S introduced a ground-breaking formula of attractively priced quality products, backed by a ‘no quibble’ personal service.
This pioneered a revolution in customer experience, and reaped customer loyalty throughout generations.
Similarly, the concept of a fully self-service store arrived in Britain in the late 1940s. Consumers loved it. Above all, it was amazingly time-efficient but also provided a more extensive selection of goods in price hierarchies.
The communication previously effected by the shopkeeper was now delivered by the products, by how they were spaced and by relevant point-of-sale.
Still today, time efficiency remains a mantra as evidenced by the mushrooming of barcode-enabled self-checkout systems.
Timeless rules
The digital revolution is reshaping retailing. However, some core tenets are timeless.
Our 21st century customer demands convenience to browse and buy from a wider choice of quality products, competitively priced, and with appropriate service support.
Seamless service will depend not only upon optimising centralised resources, but on maintaining customer-focused vibrant leadership of retail hubs in city centres and in local neighbourhoods
Leo McKee
I believe that successful retailers will be those that adapt to the new realities.
The high street is not merely a shopping destination. It also serves as a centre for leisure, social and community interaction.
Accordingly, seamless service will depend not only upon optimising centralised resources, but on maintaining customer-focused vibrant leadership of retail hubs in city centres and in local neighbourhoods.
It is highly likely that the national living wage, together with the ever-increasing demands on service excellence, will result in an increased number of higher-paid jobs in our industry.
Let’s ensure that we invest in training, to shape the skills for the new century.
- Leo McKee is chief executive of BrightHouse
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