Despite spiralling labour costs, retailers are continuing to invest in their frontline workforce, across hiring, pay and technology, to meet shopper demands for human connections in-store, new data from x-hoppers, the smart, AI-powered retail communications solution from Wildix, reveals.Amid rising wage bills and taxes, including National Insurance Contributions (NICs), retail employment costs rose by an estimated £5 billion last year, according to the British Retail Consortium. Yet, despite these growing cost pressures, rather than scaling back, brands are continuing to invest in their frontline teams.
Original research by x-hoppers of over 100 senior UK retailers in its ‘State of the Connected Store’ report showed that half (49%) are currently committing to human capital and growing store teams, rising to eight in ten (86%) fashion retailers.
In addition to investing in staff numbers, retailers including M&S, which announced a £70 million investment in increasing staff pay in March, and Primark, which has also boosted hourly wage rates by over +15% in the last three years, are also committing to increased remuneration for colleagues to improve employee engagement and retention.
As more retailers recognise that employee experience (EX) is inextricably linked to customer experience (CX), many are focusing on frontline empowerment, even against a backdrop of rising costs, to boost staff satisfaction while improving customers’ bricks-and-mortar buying journeys.
And this shift is also shaping how retailers are investing in connected store innovation, with technology playing a key role in enhancing customer-colleague interaction in-store.
Two thirds (65%) of consumers in a separate poll by x-hoppers said they value store innovation that empowers colleagues to support their buying journeys without leaving their side, with real-time information flow emerging as a key customer demand; 88% rate staff being able to deliver instant information to solve their queries as important.
In response, more than half (58%) of UK retailers are now investing in GenAI solutions for store workers, alongside technologies that support upskilling, knowledge and training – this is even higher among high-consideration retail environments, such as fashion (86%) and electrical retailers (61%). On average, UK retailers plan to allocate a quarter (25%) of their in-store innovation budgets to frontline tools that keep store staff connected while enhancing CX.
“Retailers recognise that store staff ‘make or break’ shoppers’ experiences in-store – and delivering that requires engaged, empowered teams,” said Graham Dixon, Chief Technology Officer at x-hoppers. “As brands continue to invest in human capital, just as crucial is their commitment to connectivity and innovation, which enhance rather than replace human interaction in-store.”
Designed to enable human-led, tech-enabled in-store experiences, x-hoppers’ unified communications platform connects retail teams through wireless headsets, a mobile app, QR code-based call points and AI features, helping store colleagues stay connected, respond in real-time and deliver more effective customer support on the shop floor.
To find out more about how connected store colleagues drive meaningful experiences that boost sales and loyalty, download the ‘State of the Connected Store’ report.
