How to reduce the turnover rate in the retail industry: 8 strategies to improve retention

Retail’s high turnover is driven by a mix of low pay, limited career progression, unpredictable scheduling, and high-pressure working conditions. Many employees see retail as a short-term job rather than a long-term career, especially when development opportunities are unclear.

According to the 2025 State of the UK Hourly Workforce Report, unpredictable scheduling is one of the top reasons retail workers leave.

Customer-facing roles also come with emotional strain, especially during peak periods. Without proper support or recognition, burnout becomes common.

For large retailers, these challenges can scale quickly, impacting operations, customer experience, and brand reputation. High turnover also drives up recruitment costs, from advertising and onboarding to training replacements.

Retail continues to face significant retention challenges. According to the British Retail Consortium’s HR Benchmark, staff turnover in the UK retail sector exceeds 50% annually, meaning half of all retail employees leave their roles within a year.

This figure highlights the scale of the issue, especially when compared to national averages across other industries. For large retailers, this level of churn can lead to major operational disruption, increased recruitment costs, and a constant need to onboard and train new staff.

While regional and sector-specific variations exist, the overarching trend remains clear: retail turnover is among the highest in the UK workforce, and addressing it requires targeted strategies focused on employee experience, career development, and workplace stability.

“One in two employees — 51% — are actively looking to move jobs in the next 12 months. Think about that for a moment. Half your workforce has one foot out the door.”

Emma Parkin, Head of Proposition Marketing at The Access Group in Beyond the Payslip

High employee turnover in retail creates a range of direct and indirect costs that can significantly impact business performance. Understanding these costs helps build a strong case for investing in retention strategies.

Recruitment costs are the most visible. Advertising roles, screening candidates, and onboarding new hires all require time and resources. According to CIPD, these costs include administration of resignations, recruitment and selection, cover during vacancy periods, and induction and training for new employees.

Training and productivity loss are often underestimated. New employees typically take time to reach full effectiveness, which means businesses pay full wages during a ramp-up period with reduced output.

Customer experience may also suffer as a result. High turnover can lead to inconsistent service, longer transaction times, and more errors.

CIPD highlights that while many organisations recognise the impact of turnover, only a small percentage actively calculate its cost or track retention data. For large retailers, this oversight can result in millions of pounds lost annually. These resources could be redirected toward employee development, technology upgrades, or improved benefits.

Strategy 1 – Improve onboarding and training

A strong onboarding experience can significantly improve retention in retail. Structured programmes that spread learning over several weeks help new starters build confidence and connection. Digital onboarding platforms make this scalable across locations, allowing employees to complete paperwork, access training, and track progress from their devices. This consistency reduces admin for managers and ensures a smoother start for hundreds of new hires each month.

Mentorship, regular check-ins, and clear communication about expectations and growth opportunities help new employees feel supported from day one. Tracking metrics like time-to-productivity and 90-day retention rates provides valuable insight for continuous improvement, turning onboarding into a strategic investment rather than a tick-box exercise.

Cineworld, one of the UK’s leading cinema chains, used Access PeopleXD Evo to streamline its onboarding process across multiple locations. By reducing admin time and automating key HR workflows, managers were able to focus more on staff development and engagement.

Strategy 2 – Offer clear career progression paths

Many employees leave because they see limited growth opportunities or view retail as a short-term job. Large retailers are well-positioned to change this narrative by offering visible, accessible pathways across departments and locations. Career maps, internal mobility programmes, and structured development plans can help employees see a future within the organisation.

Digital tools like learning platforms and performance management systems support this at scale, enabling managers to track progress and hold meaningful career conversations.

“Your best people — the ones most aware of their development needs — are the most likely to leave for organisations that will invest in them.”

Emma Parkin, Head of Proposition Marketing at The Access Group in Beyond Annual Reviews  

Strategy 3 – Invest in employee wellbeing

Investing in wellbeing programmes can reduce absence, improve performance, and support retention. This includes mental health support through employee assistance programmes, flexible scheduling options like shift-swapping, and physical improvements such as proper break areas and ergonomic equipment.

Financial wellbeing also plays a role. Offering resources like budgeting tools, salary advance schemes, and access to financial advice can help reduce stress and improve focus. Technology can support these efforts, making wellbeing resources accessible via mobile and enabling managers to monitor workload and adjust staffing to prevent burnout.

Strategy 4 – Recognise and reward performance

When employees feel genuinely appreciated, they’re more likely to stay and perform at their best. Scalable recognition programmes that combine financial rewards, like bonuses or commission, with non-monetary appreciation can help meet different motivational needs. Verbal praise, when specific and timely, reinforces positive behaviours and builds emotional connection to the workplace.

Digital platforms make recognition easier to manage across large teams. Peer-to-peer shoutouts, manager-led acknowledgments, and public celebrations (tailored to individual preferences) can all contribute to a culture of appreciation. To explore how technology can support your recognition strategy, take a look at our article on Reward and Recognition Programmes and discover tools designed to help you celebrate success and boost employee morale at scale.

Strategy 5 – Improve line management quality

Line managers in retail often act as the primary point of contact, which can play a part in employee retention. Investing in the development of leadership skills like communication, coaching, conflict resolution, and emotional intelligence can help build trust, improve morale, and ultimately, reduce turnover.

Support systems like 360-degree feedback, mentoring, and performance tools can help managers grow continuously, not just through one-off training. Technology also plays a role in freeing up time for meaningful interaction by automating admin-heavy tasks like rota planning and performance tracking.

Strategy 6 – Use exit interviews to identify trends

Exit interviews can offer valuable insights into why employees leave, but their impact depends on how consistently and thoughtfully they’re conducted. For large retailers, standardising the process across locations helps surface recurring issues. This can include onboarding gaps, lack of career progression, or management challenges. To make the most of this valuable tool, explore our blog on Exit Interview Questions for practical tips on how to structure interviews, ask the right questions, and turn feedback into actionable improvements.

Digital platforms can streamline exit interviews and help analyse trends at scale. Combining qualitative feedback with rating scales allows HR teams to spot patterns and act.

Strategy 7 – Create a positive workplace culture

A positive workplace culture which is consistent across large organisations can be impactful. A positive culture starts with clear values that guide behaviour and decision-making. Inclusion, diversity, and psychological safety help employees feel respected and heard, while leadership alignment ensures those values are reflected at every level.

Communication and celebration also shape culture. Transparent messaging builds trust, and small gestures can boost morale. Measuring cultural health through engagement surveys and feedback helps identify areas for improvement, allowing retailers to build environments where employees feel connected, supported, and motivated to stay. For practical advice on shaping culture at scale, read our blog on How to Build Company Culture in Large Businesses and discover strategies that help turn values into everyday actions.

Strategy 8 – Leverage technology to monitor engagement

Technology enables retailers to move from reactive to proactive engagement strategies. Tools like pulse surveys, HR analytics platforms, and real-time dashboards help track sentiment, identify risk factors, and surface trends across locations. Mobile apps also give frontline employees a voice. Acting on insights is what drives real change. When employees see their feedback leading to improvements, they’re more likely to stay engaged and contribute openly.

To help you get started, download our free Employee Engagement Survey Template and begin gathering meaningful feedback that can shape a more connected and motivated workforce.

Retail’s high turnover challenge requires a strategic and coordinated response. There is no single solution that will fix retention overnight, but a thoughtful combination of approaches tailored to your organisation’s needs can lead to lasting improvement.

The eight strategies outlined work best when implemented together. They reinforce one another, creating a positive cycle: better management improves culture, which boosts engagement, leading to stronger retention and more stable teams.

Start by reviewing your current retention efforts and identifying areas for improvement. Pilot new strategies in key locations, measure their impact, and scale what works. Our all-in-one HR software solution can support this journey by streamlining HR processes, enabling data-driven decisions, and enhancing employee engagement across your retail network. For further guidance, explore our article on 5 HR Challenges in Retail to see how you can tackle challenges and build a loyal, high-performing workforce.