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Future-proofing retail: Why people strategy is your strongest competitive edge

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By Brigitte Da Gama, Group Chief People Officer at The SPAR Group

Retail, long known for its volatility and pace, is now grappling with new challenges—talent shortages, rising attrition, and shifting employee expectations.

Yet, amid this pressure, some organisations manage to retain and cultivate talent. What sets them apart is not a bigger recruitment budget or more perks—it’s clarity of purpose and intentional people strategy.

For HR leaders in retail, the message is clear: competitive advantage in this sector increasingly hinges on how well we attract, grow, and retain talent. In this context, a robust and values-driven Employee Value Proposition (EVP) becomes a differentiator and a necessity.

Take, for example, the shift away from one-size-fits-all benefit structures. Retailers attuned to their workforce’s life stages and evolving financial realities are designing retirement and benefits packages with greater flexibility. This might mean offering multiple pension options, tailoring support for young employees starting their careers, or providing more generous family leave that recognises diverse caregiving roles. These aren’t just HR policies but cultural signals about a company’s values.

Similarly, addressing pay equity and transparent remuneration models isn’t just about competitiveness—it’s a statement of ethics. In a world where younger generations are more values-conscious than ever, how a company compensates its people speaks volumes.

Leadership development is another lever through which HR can drive strategic impact. In a sector known for high turnover at the store management level, investing in structured leadership pathways—from supervisor programmes to future-focused retail academies—is essential. The days of promoting high performers into leadership without formal training are over. What’s needed now is a deliberate runway for leadership readiness, built on real-world training and continuous feedback.

According to the Society for Human Resource Management Skills Gap Survey report, 83% of HR professionals said they had difficulty recruiting suitable candidates in the past 12 months, with 52% saying the skills gap has worsened or greatly worsened in the past two years. Additionally, 83% said they have noticed a decrease in the quality of job applicants, with one-third citing a lack of needed technical skills.

As HR executives, we must ask: Are our talent strategies keeping pace with the business’s ambitions? Are we building a workforce that reflects our values, serves our communities, and readies us for growth?

HR’s remit must stretch beyond current employees. Retailers who invest in youth development, skills pipelines, and academic partnerships are not just doing good—they’re safeguarding the industry’s future. National initiatives like South Africa’s YES programme, corporate bursaries, and early-career internships offer scalable models for social impact and long-term talent sustainability.

According to McKinsey, one-third of grocery retail tasks could be automated over the next eight years. Yet very few jobs can be fully automated, meaning the challenge is not about eliminating jobs but determining how much they will change—and how workers can change with them. As some tasks become increasingly automated, workers must adapt, taking on additional, often more rewarding tasks, such as increased customer interaction, while acquiring new skill sets.

The future of retail won’t be defined solely by digital innovation, new formats, or supply chain efficiency. It will be shaped by the people who lead and operate those systems—store managers, logistics specialists, digital strategists, and frontline staff. Our job is to ensure those individuals are hired, empowered, equipped, and inspired to lead us forward.

In a sector as dynamic as retail, the only fundamental constant is change. The companies that will thrive invest in people not just as a resource, but as the foundation of long-term success.

SPAR is in the enviable position of having a remarkably low staff turnover rate— at 1.52% year to date. This isn’t by accident. It results from a strategic, values-driven talent acquisition, development, and retention approach.

SPAR Retail Academy is building and capacitating leaders at every level—offering training for today’s store managers and tomorrow’s owners.

We are also deeply committed to transforming our leadership pipeline. We’ve increased participation in our leadership development programmes, with 176 current delegates  on our leadership development programmes and 46 from our logistics management track have graduated with a further current intake of 69 delegates—both marked increases from the previous years.

As the war for talent hots up, retailers that retain and grow must continue to innovate and think holistically to stay ahead.

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