Since the 2008 financial crash, the UK retail sector has faced near-constant disruption, battling inflation, supply chain challenges, labour shortages and rising retail crime. Despite these hurdles, retail remains a vital part of the UK economy, contributing £112.8 billion in 2023 alone – a 2.4% increase from the previous year.
As we approach late 2024, there’s reason for optimism. Consumer confidence has hit a three-year high, driven by the lowest core inflation since 2021, a decreasing Bank of England base rate and the Labour administration’s commitment to tackling retail crime.
But to capitalise on these opportunities, retailers need the right teams. Nearly 40% of retailers report difficulties filling essential Head Office roles, which are critical to navigating this dynamic environment. Our recent Coffee & Commerce; retail event explored these hiring challenges and shared actionable insights to help businesses build resilient, future-ready teams. Below, we highlight key research presented by our CEO, James Calder, on hiring trends in the UK retail sector.
Retail hiring trends emerging in 2024
Our analysis of job postings and candidate placements from our 25 largest retail clients in the Midlands – spanning core corporate departments: Finance, Human Resources, Marketing, Office & IT Support and Procurement & Supply Chain – offers valuable insights into hiring trends. Covering data from 1st January 2020 – 31st August 2024 across all contract types, here’s what we discovered:
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- The gig economy remains strong
Fewer than half of retail roles in 2024 are permanent, reflecting the ongoing shift toward flexible hiring. Notably, Finance roles are an exception, with permanent roles increasing from 63.5% in 2022 to 66.7% in 2024.
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- ESG and sustainability on the rise
Environmental, Social and Governance (ESG) initiatives are now key for attracting talent and engaging consumers. Marketing hires, particularly in brand & communications, account for one-third of all job postings, highlighting the emphasis on brand transparency and ESG communication.
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- Shift from recruitment to retention
Recruitment-focused HR roles have dropped significantly – from over 60% in 2023 to 33.3% in 2024. Meanwhile, roles in reward and learning & development now represent two-thirds of HR positions, underscoring the shift toward employee retention and development.
In-depth analysis of retail hiring trends
Between 2022 and 2024, our data reveals a notable shift in retail hiring trends. The proportion of permanent roles has decreased from 71.1% to 47.4%, while contract roles have risen to 31.6% of all positions – the highest in the five years we analysed.
As shown in graph 1, permanent job postings in the Midlands retail sector have steadily declined, reflecting economic caution. Meanwhile, demand for contract roles continues to rise, a trend likely to persist into 2025 as the introduction of Labour’s New Deal which includes Day One rights and adjustments to zero-hour contracts, shape recruitment strategies. In addition, our team feedback that multistage interview processes are becoming more common, further underscoring a more measured approach to hiring.
To better support retailers and businesses, we provide tailored services such as initial interview rounds and video submissions. These solutions streamline the candidate evaluation process, saving time while maintaining a rigorous approach to recruitment. In fact, of all Distinct’s corporate retail placements, 95% of placed candidates are still in the role 3 months after placement.
For a breakdown of trends by department, explore insights for Finance, Human Resources, Marketing, Office & IT Support, and Procurement & Supply Chain.
Emerging hiring trends in retail Finance
Graph 2 highlights a notable trend in retail finance hiring – the proportion of permanent finance roles has risen from 63.5% in 2022 to 66.7% in 2024, bucking the overall retail industry shift toward flexible hiring. While temporary roles saw a slight uptick between 2023 and 2024, temporary and contract finance roles remain below the retail market average.
Graph 3 further reveals consistent demand for financial analysis and business partnering roles, which now account for approximately one-third of all retail finance jobs. However, other finance job groupings have experienced significant shifts since 2022:
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- Accounting roles have declined sharply, from a peak of 36.7% in 2020 to just 15.4% in 2024
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- Technical and specialist positions have grown steadily, representing 10.3% of all retail finance positions – a 9.6% rise since 2021
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- Financial management and control roles have climbed to 20.5% of all retail finance roles in 2024.
The Labour administration’s transition from the Financial Reporting Council (FRC) to the Audit, Reporting and Governance Authority (ARGA) has likely driven demand for technical and specialist finance roles. This shift underscores the growing importance of internal auditors to help businesses meet evolving regulatory requirements. As compliance needs rise, we anticipate further growth in these areas, reinforcing the importance of skilled financial teams in retail’s future.
Human Resources hiring trends within UK retail
Retail is a sector often challenged by high turnover. However, as shown in graph 4, recruitment & resourcing roles have dropped significantly, from 61.5% of all retail HR positions in 2023 to 33.3% in 2024. Meanwhile, roles in learning & development and reward have risen sharply, representing two-thirds of HR retail positions this year. This indicates a growing emphasis on employee retention over talent attraction.
Upcoming changes to the apprenticeship levy and worker rights reforms further highlight HR’s evolving role. HR teams will be instrumental in helping businesses adapt by implementing new strategies and processes, potentially driving a resurgence in change management and transformation roles.
Salary trends also reflect this pivot toward employee satisfaction and development. While retail head office salaries have grown at a slower pace compared to other retail functions, they have still increased by a notable 6.8%.
Marketing hiring trends in retail
As shown in graph 5, roles in brand & communications (33.3%) and CRM & email marketing (16.7%) have remained steady, or experienced slight increases, between 2023 and 2024. This aligns with growing consumer scrutiny over sustainability claims, driven by heightened transparency in supply chains. Following widespread concerns over greenwashing last year, many retailers are prioritising authentic communication of their sustainability efforts. We anticipate that demand for brand & communications roles will continue to rise as businesses aim to rebuild trust in 2025.
Moreover, there’s been a 10% decline in specialised PPC and paid media roles between 2023 and 2024, with many retailers consolidating these into broader digital marketing positions to optimise resources.
Interestingly, in-store POS roles account for 16.7% of all retail marketing roles represented by Distinct this year. Despite the growth of e-commerce, physical retail remains vital, with increased investment in improving in-store experiences. For more insights, refer to James O’Hare’s talk from our Coffee & Commerce event.
Retail hiring trends in IT & Office Support
As seen in graph 6, there was a marked decline in facilities and office management roles from 7.5% to just 3.7% in 2024, this is likely reflective of the broader workplace demand and shift toward hybrid working.
Graph 6 also shows that facilities and office management roles declined from 7.5% to 3.7% in 2024, reflecting the broader shift to hybrid work environments. Similarly, EA and PA roles decreased by 18%, whereas administration positions rose by 8.2%, now representing 40.7% of all retail office support jobs. This surge may indicate growing operational demands, expanded regulatory compliance needs and a focus on streamlining processes.
IT support and management roles also grew slightly from 15% in 2023 to 18.5% in 2024, likely driven by increased investment in technology like advanced POS systems and CRM platforms to enhance operational efficiency.
Emerging Procurement & Supply chain hiring trends
As illustrated in graph 7, economic uncertainty has significantly influenced the types of procurement and supply chain roles supported by Distinct in 2024. Notably, supply planning roles surged from 20% to 100% of placements. This reflects retailers’ prioritisation of operational efficiency and resilience, especially following disruptions associated with the COVID-19 pandemic and evolving EU regulations. Hiring supply planners is now critical for managing risks and ensuring continuity.
The emphasis on talent retention likely contributes to this shift as well, as many supply planning roles cater to early-career professionals. By prioritising internal promotions, businesses may be actively filling other roles from within their existing teams, leveraging internal talent to support growth and operational needs.
Distinct’s role in supporting retail
With the retail sector supporting 2.86 million jobs and facing significant challenges, particularly in hiring for Head Office roles (reported by 38.9% of retailers), building resilient teams is more critical than ever.
Distinct excels in helping retailers meet these challenges with a proven 95% success rate in corporate retail placements. Get in touch today to find out how we can support your hiring needs.
