Rising labour costs and increasing operational burden are forcing retailers to put cost controls ahead of employee experience (EX), new research from frontline operations platform, WorkJam, reveals.

Original research of 150 retail professionals conducted at the Retail Technology Show showed that over a third (37%) are now prioritising cost control over employee retention and experience, signalling a shift way from staff engagement within workforce strategies.

Only 5% said EX remains the top priority – a dramatic change from 2025, when staff engagement was identified as the sector’s biggest challenge facing frontline teams.

“This is one of the sharpest and most risky strategic reversals we have seen in the sector in recent years,” said Mark Williams, MD EMEA at WorkJam. “The pressure retailers are facing is real, but deprioritising employee experience is a short-term reaction that will negatively compound over time.”

In addition, following rises in National Insurance Contributions (NICs) and the National Minimum Wage, nearly half (44%) of retail businesses are responding by reducing or slowing hiring, while 29% are raising prices.

“The challenge for retailers is finding ways to reduce costs and simplify operations without losing focus on frontline engagement,” Williams added. “The retailers that will be most successful are those recognising that operational efficiency and EX are closely linked, not competing priorities.”

Two thirds (66%) of retailers polled in the survey said workforce pressures are forcing their organisations to rethink their operating models, while 31% still rely on basic workforce management tools.