The biggest cause of skills gaps in retailing is the failure to train and develop staff, which is cited as a major reason why the sector suffers such a high rate of staff turnover (the proportion of employees who have left the firm in the last twelve months). Traditionally, employers in retailing have tended to regard a high level of staff turnover as a natural characteristic of the sector. However, as the quality of customer service is becoming increasingly important, and firms compete less on product pricing, issues regarding recruitment and retention are increasing in importance.  The sector needs to reduce the high levels of staff turnover, which is highest among sales assistant and retail cashiers.  This is particularly worrying, given that employers have recognised that these groups of employees are increasingly important to a firm’s success. 

The image of the sector as one that does not provide a good career structure (possibly because a high proportion of the work is part-time) is also putting off potential employees.  Retail is in competition for workers with these skills from employers in hotels and catering (and other tourism-related sectors), financial services and health.

Sources: Skills in England 2003 and Harris and Church 2002

For further information see Occupations and the Regional dimension.