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Nov 15, 2024

The Shifting Landscape of Retail Jobs: What Lies Ahead?

The retail landscape as we know it is evolving, and with each wave of change comes uncertainty for roles like cashiers, forecourt attendants, and other frontline retail positions. While technology and shifting consumer demands propel some industries toward efficiency, it raises questions about job security and the future for those who have traditionally filled these roles. In this blog, we explore the current trends impacting retail jobs, the evolving role of frontline workers, and what these changes mean for the future of employment in this sector.

Mixed Job Market Trends in Retail

In the fuel retail industry, two prominent shifts are challenging job creation and retention: talks of petrol deregulation and the rise of electric vehicles (EVs). PetroCONNECT has previously highlighted the potential job loss risks that come with deregulation and the gradual, though inevitable, growth in EV adoption. Although EVs haven’t yet taken over, the ripple effects are already being felt in discussions about employment stability in the sector.

A recent Top Auto report noted that petrol attendant jobs appear safe for now due to the slower pace of EV adoption in South Africa. However, this positive outlook isn’t mirrored across other retail segments. In fact, sectors like trade and retail recorded a significant number of job losses in the first quarter of 2023, with the trade industry alone seeing a loss of 36,000 jobs, followed by 32,000 in business services.

Adding to the complexity, the number of active job postings in South Africa’s retail sector saw a slight month-on-month increase in January 2024, but job postings have sharply declined by 48.88% since October 2023. Despite 338 new jobs posted in January 2024, 325 jobs were also closed, which highlights the sector’s struggle to create sustainable opportunities. 

This begs the question: is the retail sector truly creating jobs, or are they merely retaining positions for those with higher skill levels? While job creation in frontline retail roles, such as petrol attendants, is excluded from standard retail job metrics, the retail industry is increasingly geared toward semi-skilled and skilled positions. Unfortunately, this shift makes job accessibility for those without formal qualifications or extensive experience increasingly scarce.

Self-Service Solutions: Enhancing Efficiency but Redefining Roles

A significant development reshaping retail is the adoption of self-service technologies. The Shoprite Group recently launched UNIQ, a clothing brand that introduces South Africa’s first self-service checkout in its Cape Town, KwaZulu-Natal, and Johannesburg locations. Similarly, McDonald’s fast-food chains have incorporated self-service kiosks, experiencing a 6% sales growth in the first year of introducing self-service kiosks in the US. KFC has also embraced self-service kiosks, describing this shift as part of a pioneering approach to the evolving quick-service food market, which has transformed considerably over the past two years.

While the adoption of self-service solutions in restaurants and retail settings promises efficiency, it also calls into question the need for traditional roles like cashiers. Statistics from the National Retail Federation (NRF) reveal that 97% of consumers are likely to abandon a purchase if faced with the inconvenience of long queues, and 75% will walk away if seven people are ahead of them in line. Self-service checkout helps minimize long queues and improves order accuracy, which are critical for today’s convenience-driven customers.

Although self-checkout doesn’t directly eliminate jobs, it does shift the focus to job transformation rather than job creation. With kiosks and counters dividing foot traffic, the demand for traditional cashier roles may diminish, but support positions—such as assisting first-time kiosk users and providing customer service—are still needed, especially for older customers who may need assistance.

What’s Next for Frontline Retail Jobs?

As technology reshapes retail, frontline jobs are at a crossroads. With ongoing automation, companies must consider new ways to train and upskill workers for roles that support digital transformation. It’s clear that while self-service is here to stay, there’s an opportunity to redefine frontline retail positions into more customer-centric and support-focused roles, preserving jobs and aligning them with modern retail demands.

In this evolving landscape, workers in retail must adapt, and employers need to support this transition. Ultimately, job security in retail will depend on balancing technology with human touch—combining efficiency with empathy in ways only people can provide. As the industry navigates these changes, the question remains: how will retail strike this balance to sustain jobs and provide opportunities in a shifting world?

Join forces with PetroCONNECT to secure the future of your team. Partner with us to conduct a comprehensive Training Needs Analysis, and together, we’ll help you unlock grant opportunities available through relevant SETAs. With our Skills Development offering, you can empower your workforce to adapt and thrive in the evolving retail landscape. Let’s work together to build a resilient, future-ready team.