How Retail Leadership Development Needs to Change

The retail organizations around us are changing. Technological developments promise faster deliveries than ever, and retail employment is not the same exciting prospect anymore for college students. Before looking at how the leaders are responding to these changes, let’s answer something critical: Are retail leaders prepared to take on the future?

Retail Leadership Development – The Story So Far

The retail sector is facing the heat not just from the economic downturn alone but also from troubled global matters and stemmed revival after the pandemic. That’s one side. The other is managing the employees and the store. The first is challenging because of the typical high attrition of working frontline in retail. The financial benefits are no help, so the matters relate to the experiences. The second area is posing challenges because there are better options on the internet. Retail needs to focus on building great customer experiences to survive the drought brought upon by e-commerce, which again boils down to how loyal and good your employees are. There’s one thread tying all of these together: The store manager. These often assertive but usually tough people are the heart and soul of retail chains. A lot rests on their shoulders—right from managing the employee register to ensuring that the customer exits with a smile on their face. Historically, long-term employment with a retail chain would mean a series of promotions into managerial and leadership roles. But times are changing, and so are demands. The managerial role in retail is now about managing stakeholders, supply chains, tech, people, and so on. Managers and leaders at every level in retail businesses need more training and support to achieve remarkable results that are becoming synonymous with survival. While historically, we have witnessed a drought of leadership development opportunities in retail, there are voices demanding change quite openly now. For instance, in research by Spencer Stuart across retail organizations globally, it was found that leading and empowering people was one of the most important abilities a retail leader needed! That’s not all. There’s more context to highlight why retail leadership development is the need of the hour. HR leaders from these retail organizations shared that the biggest risk in succession planning for retail right now was the inability to address development gaps – which directly hints at the need for better leadership development initiatives for retail organizations. But, is it really worth the fuss?

How do leadership development initiatives impact the retention of leaders?

Research cited above points to 25 to 48% of CEOs and direct reports being expected to leave their organizations within a year from the survey date. What’s next, then? Unfortunately, not many teams are sure, owing to the lack of leadership development practices. They are grappling with gaps in the talent pipeline, and most of the next generation does not seem fit to bear the load. The leaders and managers are bound to search for exits when the traditional career progression route is no longer feasible, and there are no alternate avenues on offer. The growth promised through these programs is a great benefit on top of competitive aspects like pay and benefits. When similar offerings populate the industry, differentiation is made of L&D initiatives that boost employee loyalty by supporting them right where they need it. Leadership development opportunities can help curb the turnover of leaders and managers in retail. This is because investment in leadership development offers a sense of professional security. That’s not all. There’s more that retail leadership development can change.

What is the impact of retail leadership development?

We can sum up the major impact of retail leadership development as follows:

• Make your people stay: First, retail leadership development is important to fight up-and-coming challenges with the right workforce. External hiring, training for your industrial relevance, and then fighting the battle would prove costly. Instead, if you invest in bringing out the leadership potential of your people, you will have a more loyal workforce who values you as much as you do them. Building loyalty among your team members in a high-turnover industry is one of the best ways to secure competitive advantages.
• Bring your people together: Leadership and management development programs will help you emphasize your organization’s core values and mission. In turn, the receivers of these messages, the leaders and managers who are learning, double up as culture agents with the frontline staff and ensure they have a sense of purpose at work.
• Propagate the right behaviors to the frontline: Training managers in your core values and the right mix of management skills will help you create a trickle-down effect. As a result, the ideas and behaviors you want to emphasize are built with the managers as role models for the frontline staff, leading to the ultimate success, which is a great customer experience.
• Tailor leadership programs to meet your needs: There’s a lot available in the open market when it comes to developing leaders and managers, but the question is—does that match what you need? Most likely, it will not. Most leadership development programs are cookie-cutter and not made to fit. As a result, the impact remains half-hearted. Investing in leadership development yourself will allow you to control the content and application.
• Be future-ready: It’s no secret that the world is changing. The retail industry now needs to negotiate terms with consumers who are conscious of the level of comfort e-commerce can offer. There are also tech disruptions to keep in mind, like AI. All of these changes require leadership that is willing to take on challenges.

The old image of a rigid store manager is no longer the face of the retail industry, so let’s replace that archetype from the leadership development programs too?

What does retail leadership training need to do?

Regarding retail leadership development, the most common forms include screaming ideas into an audience, which, although traditional, does not appear very effective. Since we are talking of preparing for a modern world, leadership development practices in a retail environment also need to modernize and get in tune with the present. For instance, AI-powered leadership development fits neatly into the retail leadership development paradigm because it can meet the needs of distributed teams at scale even when the contextual needs are heavily varied. What does that mean? Let’s break it down into five key features of retail leadership development for the future.

#1 Not pull away people from work

One of leadership development’s biggest troubles lies in taking time for it. Most managers and leaders don’t have the hours (or sometimes days) that the conventional leadership workshops, seminars and getaways demand. They do have unique challenges that these programs don’t help with because they are made with an Ideal Customer Persona in mind. Retail leadership development must embrace microlearning to meet managers where they are, most likely on the store floor. It means offering learning in bite-sized bits that are actionable and not just offering a checklist of best practices to follow. For example, Risely’s daily nudges for people managers share a small actionable idea that they can practice right then. This nudge is aligned to their job role and level of proficiency in particular leadership skills, and it even identifies which team members would be best to work in that area. All of this takes about 15 minutes at best, including getting the idea, trying it out, and maybe even talking about what happened with the AI coach Merlin right then!

#2 Train a lot of people similarly even at different locations

The most basic part of training a retail organization is understanding that it is distributed. For example, one company that we work with, Fosters, has people spread over six to seven separate locations. Pulling them all into a single leadership development program would mean pulling key people from each place and potentially jeopardizing operations for at least a day or two. That’s why retail leadership development solutions need to account for a centralized set-up that scales down into your context. For instance, Risely’s AI-led co-pilot for leadership development is accessible anywhere at any time. The managers do not need to seek permission to take a coaching session or wait until the company organizes the next one. All of them have access to an AI coach who is personalized to their job role, level of leadership skills, and professional goals. Also, Merlin offers voice mode in over 40 languages, so don’t worry about typing out long paragraphs about what’s bothering you. It’s as simple as sending that voice note to a friend describing your annoying day at work. Simplification in accessing coaching and support through interventions like these is critical for retail leaders since they are in a high-stress and emotionally draining job that leaves little bandwidth to “learn” at the end of the day.

#3 Train people at different levels in the organization

Every organization has people working at several different levels. This leads to an obvious complexity: Who to train and who not to? What if we told you that every leader on your team deserves support? Broadly, the numbers in corporate organizations suggest that only about 10% of leaders are able to access training. It leaves out most of the people who work day in and day out with the frontline staff. AI coaching and leadership development drastically reduce costs and barriers. As a result, you can train all the people in your organization at a fraction of the cost, time, and effort. AI coaching is adaptable to job roles, so it can help anyone from the CXO club to frontline managers who battle it out every day.

#4 Meet the unique contextual needs of retail leadership

Retail leadership is not for the faint-hearted. A number of factors are involved, from building customer experiences to managing supply chain networks. The trouble is that a leadership coach would not know about this unless they come from a retail background. This makes coaching and development services for retail leaders a niche and expensive area. But that’s not all. Not all retail leaders are cut from the same cloth. Some have to handle people by giving speeches; others do so in closed rooms where big deals are discussed. Both of these people need different skills. AI supports this differentiation in the support being provided to leaders across a retail organization with personalized learning pathways. Risely, for instance, starts by asking you to configure challenges and assesses you on leadership skills to create a roadmap that would suit you. It further pulls insights from company policies and ties into individual professional goals to create a well-rounded learning experience. It is an entirely different paradigm from the leadership development best practices offered so far to retail leaders.

#5 Reinforce organizational objectives and values

In a business that’s known for high turnover, loyalty is chased. So why are we leaving it on the table when effective leadership development and shake things up? Investing in leadership development creates a positive employee brand that ensures your people stick with you. But that’s just one part. Leadership coaching that is outsourced or conducted through external providers is more often than not likely to suffer from a disconnect from your values. It’s not because of inability but simply because of design. Embedding your mission and ideas is possible only when you train people with in-house experts, which is a costly affair on its own. So, what’s the way out? An AI coach helps with this, too! Risely’s AI coach, Merlin, learns your company’s policies and values and offer them along with suggestions whenever your team is taking a coaching session. This is a great way to reinforce your core ideas rather than letting them catch dust in some lengthy documents that barely get read. Retail leadership development is surely in for some amazing changes as the world progresses. Come 2025 and bid adieu to one-size-fits-all learning programs plaguing your people. Instead, gift them learning that meets their needs. Read more: How To Make Leadership Development Programs Succeed In Your Organization?

To Sum Up

Retail leadership development is the need of the hour as we navigate more complex relationships and changing dynamics with the increasing popularity of e-commerce. Manager and leadership development promises a lot to retail organizations. There are many benefits to be sought in improved customer experiences, better frontline performance, and increased employee loyalty. But the last bit of trouble lies in the prevalent old-school modes of leadership development in the retail industry. They are often not optimized for the right context where your learner is. AI bridges this gap by offering personalized learning paths to managers and learners for unique challenges.