The traditional structure of retail is evolving. Once marked by buyers forecasting demand and managing supplier relationships, marketers driving foot traffic through promotions, and in-store employees assisting customers and managing stock, today’s retail workforce is being reshaped by the rise of eCommerce and AI. Below, we dive deeper into this impact and considerations for businesses needing to rethink retail talent management for digital transformation. 

New Jobs 

Over the past 15 years, eCommerce has created more than 178,000 new jobs, and it’s projected to continue growing around 5% in the coming year. AI is also transforming roles by automating tasks such as inventory tracking, fulfillment, transaction processing, and customer service.   

As a result, retail job functions are shifting, and new roles are emerging – eCommerce specialists optimizing online platforms, UX designers enhancing the digital shopping experience, data analysts interpreting customer behavior, and cybersecurity architects protecting sensitive information. At the same time, frontline associates are increasingly expected to use digital tools to meet customer expectations. In fact, 54% of shoppers want associates to carry a mobile device so they can check inventory or quickly access loyalty account information.  

For retail store associates, this presents an opportunity to upskill and step into more digitally enabled roles, bringing frontline knowledge (like the goals and mission of the business) into this evolving digital landscape. This also benefits employers, too, who retain knowledgeable staff while closing skills gaps.  

This shift is not only driven by technological advancement but also rising consumer expectations and the need to streamline operations and reduce costs. At the same time, digitalization does come with trade-offs. The rise of eCommerce has contributed to many retailers closing stores – with up to 15, 000 projected to close in 2025, more than double in 2024, resulting in thousands of lost jobs.  

Still, for many retailers, digital transformation is less about job elimination and more about job evolution, creating new opportunities for growth, reskilling, and long-term workforce development for their retail associates.  

Embracing vs. Resisting Change 

It’s important to consider that not all employees may be embracing this digital transformation. While turnover is already common in the retail industry, the introduction of new technologies can accelerate it, especially when employees feel overwhelmed or excluded from the change.  

Employees may resist learning new processes or adopting unfamiliar systems, like AI-powered tools, mobile devices, RFID inventory scanners, or self-checkout solutions. Veteran staff can feel wary AI is unreliable or will disrupt their jobs significantly. Some may even choose to leave rather than invest time in learning technologies they don’t understand or trust.  

To reduce this resistance and better retain those experienced team members, management needs to clearly communicate the why behind the digital transformation and how it aligns with the organization’s vision or mission. They can also provide hands-on training that creates new opportunities in the employees’ work, empowering them to use the new tools effectively and see how their roles are evolving (not being replaced). In-store associates, for example, should feel confident assisting at self-checkout, using RFIDs to load inventory, or helping customers shop or browse via mobile devices.  

When digital tools are properly introduced and enough training is given on the devices, they can actually help to reduce repetitive tasks and minimize burnout for employees, freeing them up to focus on more personalized, rewarding experiences with customers. This not only increases productivity and sales but can also improve the overall employee experience, leading to more engaged and satisfied associates. 

How to Address Evolving Talent Needs in Retail 

As the retail industry undergoes rapid digital transformation, workforce strategies must evolve in parallel. From AI-powered tools to enhanced eCommerce platforms and in-store technologies, these shifts demand new skill sets, as well as a fresh approach to talent development. Retailers that prioritize people as much as platforms will be best positioned to adapt and grow. 

Talent Management Strategies  

1. Invest in change management 

As retailers adopt new technologies to optimize stores and enhance customer experiences, the skills required of employees continue to shift. Prioritizing talent management as a core part of change management signals to employees that leadership is invested in their growth and success. Clear goals around AI and eCommerce adoption, combined with a thoughtful upskilling strategy, help employees embrace change and stay motivated to develop new capabilities. 

2. Prioritize digital upskilling as core parts of transformation. 

Digital upskilling must be central to any retail transformation. Once the organization defines a clear purpose for digitalization, ensure all employees understand the vision and feel part of a unified effort. Before investing in digital tools or AI, establish a plan to build digital literacy across the workforce. These technologies provide the most value when employees are confident in and capable of using them. While transformation can raise concerns around retention, LinkedIn research shows that 94% of employees are more likely to stay when offered learning and development opportunities.  

3. Design workforce strategies that are human-first but tech-enabled. 

Effective digital training starts with helping employees understand the “why” behind the change and the value it brings to them. Building digital confidence empowers employees and fosters a willingness to engage with new systems. Leadership participation, clear communication, and empathy throughout the process help create a positive learning environment—and ultimately, a more future-ready workforce.  

Looking Ahead 

Digital impacts are significant in retail and while jobs are not being replaced, they are changing. With the proper strategy and training when implementing digital tools and systems, management can make this a win for the customers, employees, and company. Talent management can be a differentiating factor for retailers moving forward to keep engaged, skilled, and motivated associates. Reach out to learn more about our People and Change Consulting.