Earlier this year, at Distinct HQ we hosted our Coffee & Commerce: Retail event, bringing together industry leaders and professionals working within and alongside UK retail. Since the 2008 financial crisis, UK retail has faced continuous disruption leading some to declare the sector to be in a state of “permacrisis”. Yet, contrary to often sensationalist media headlines, this event highlighted the resilience and growth of the retail industry.
Keynote speakers included James O’Hare of Sitoo, Josephine Brown of Dunelm and Distinct’s CEO, James Calder, who explored the challenges, trends and opportunities shaping UK retail today. Discussions spanned sustainability, governance, hiring trends and how businesses are adapting to the current economic climate.
Key UK retail hiring trends: Insights from James Calder
James Calder presented five years of hiring data from Distinct’s top 25 Midlands retailers, exploring some significant emerging trends:
- The gig economy remains significant
Flexible hiring continues to dominate, with less than half of all head office retail roles in 2024 being permanent. However, finance roles buck this trend, with the proportion of permanent hires increasing from 63.5% in 2022 to 66.7% in 2024. Arguably related to tighter restrictions as retailers respond to the Labour administration’s transition from the Financial Reporting Council (FRC) to the Audit, Reporting and Governance Authority (ARGA).
- The continuous rise of ESG and sustainability
Sustainability is becoming a priority for retailers, influencing both talent acquisition and consumer engagement. To support these efforts, marketing hires in brand and communications remain strong, accounting for 33.3% of postings, emphasising the need for clear, authentic communication on ESG initiatives.
- Focus on talent retention
Internal recruitment roles have dropped sharply – from 61.5% of HR roles in 2023 to 33.3% in 2024 – as retailers pivot to retain talent. Reward and learning & development roles now dominate HR hiring, reflecting a focus on combating high turnover rates, which exceed 50% in retail, compared to a 35% average across sectors.
These insights set the stage for lively discussions throughout our event. For full details on the research, please see our write-up: Key hiring trends shaping the UK retail industry.
James O’Hare on retail trends from Scandinavia
James O’Hare, UK Managing Director of Sitoo, delivered an insightful session on retail trends from Scandinavia, using videos from his recent trip to highlight his key points. O’Hare discussed the resurgence of physical retail, particularly driven by Gen Z, who now shop in-store more than Millennials or Gen X. This “digital native” generation is reshaping the retail landscape as they mature into higher spending power.
O’Hare also referenced the findings from The Halo Effect I, II, and III reports, which demonstrate that opening physical stores boosts online sales, while closing them results in a decrease – underscoring the power of an omnichannel strategy.
Ultimately, O’Hare emphasised that successful retail relies on three key elements: a great product, well-trained staff and technology that enhances the customer experience. He showcased how retailers are using innovative in-store technology to create unique experiences that can’t be replicated online, bridging the gap between digital and physical commerce. With these insights, O’Hare argued that brick-and-mortar retail is far from dead – it’s evolving to meet new consumer expectations.
Supporting hybrid and working abroad with Josephine Brown
Finally, Josephine Brown, People Partner from Dunelm shared valuable insights into the company’s approach to hybrid and remote working, focusing on their greatest asset – their people. Dunelm’s employee survey reveals that employees who visit the office at least twice a week feel more connected to the business. In response, they’ve implemented key policies to support hybrid working:
- Hybrid onboarding: A blend of remote and office-based onboarding ensures smooth integration for new hires into the hybrid work environment
- Manager training: Managers undergo tailored training to effectively lead and support hybrid teams
- Anchor days: Recognising the value of in-person connections, Dunelm encourages quarterly anchor days for team updates, progress discussions and career conversations. These sessions help foster collaboration and strengthen team bonds.
Additionally, Brown introduced Dunelm’s new Overseas Working Policy, allowing employees to work abroad under specific conditions, further enhancing flexibility. This policy, alongside their other initiatives, has positioned Dunelm as a leader in flexible working practices, giving the company a significant competitive edge in attracting talent.
Brown concluded that hybrid and flexible working not only have strong staff appeal but also deliver real, measurable benefits to the business – demonstrating that such practices can excel in the retail industry.
Join the discussion
Distinct thrives on bringing professionals together to discuss the challenges and opportunities businesses face. We look forward to more interactive events in the future. For advice on market trends or what candidates are seeking, reach out to our expert team.
