Retail HR professionals are facing mounting pressures – from rising costs and shifting consumer behaviours to tough workforce decisions. But, they’re stepping up with people-first strategies, smarter forecasting, and stronger leadership alignment to keep things moving forward.

Since the last UK Budget, it’s fair to say the retail and wholesale sector hasn’t had it easy. With shifting customer behaviours, rising National Insurance (NI) contributions, and operational costs climbing across the board, HR teams are facing significant financial pressures. 

That said, as well as retail challenges, there are new opportunities. Let’s take a look at how retail HR professionals are responding to external setbacks by developing smarter, more sustainable solutions.

The insights below are drawn from What’s the Mood? HR’s Take on Business 2025 – a survey conducted by the HR Ninjas community, featuring responses from 490 UK-based HR professionals across diverse industries.

In this blog

Retail HR is stepping up

But, what are the drawbacks?

Conclusion and key takeaways

Retail HR is stepping up

It’s clear that, in recent years, HR has become more strategic, gaining greater influence at the C-suite level. Now, that influence is being put to the test – as retail HR strategies evolve in response to mounting economic pressures.

People strategies are changing

Off the back of a tough budget and a cost-of-living crisis, retail and wholesale HR teams are being asked to do more with less. In fact, 71% say government budget changes are already reshaping their people strategies.

For an industry grappling with price-sensitive customers and tight profit margins, the go-to reaction is often cost-cutting, and reducing labour hours.

But the tide is starting to turn. Instead of short-term fixes, retail leaders are beginning to explore more sustainable solutions: redesigning shift patterns, improving labour forecasting, and using people data to better match staffing levels to demand.

HR and leadership are aligning

Amid the tough calls and tighter budgets, there’s another positive to pull out: 80% of HR professionals in retail say they’re working closely with leadership to tackle current economic challenges head-on. And, in a sector that moves fast and faces constant pressure, that kind of alignment really matters.

HR’s not just there to tick boxes or support plans already in motion – it’s actively shaping how the business responds. 

It’s this close partnership between HR and leadership that’s helping retail businesses not just survive, but stay agile and people-focused.

But, what are the drawbacks?

While this alignment between HR and leadership is a promising shift, it doesn’t come without its challenges – many HR teams are being forced to make tough decisions about where to focus their limited time and resources.

Only 34% of retail HR professionals are prioritising DEI

This is not about apathy. When you’re juggling labour hours, energy bills, and rising National Insurance (NI) contributions, culture work often becomes one of those ‘we’ll get to it later’ items. But if left too long, it can start to undo the fabric of what makes great teams thrive: belonging, innovation, and purpose.

The good news? Keeping DEI alive doesn’t mean launching huge programmes or blowing the budget. It’s about weaving inclusion into the day-to-day, making sure people feel seen, heard, and valued. Whether that’s rethinking how rotas are assigned, opening up conversations across teams, or simply checking in more often, it all adds up. 

46% say redundancies are on the cards

As well as DEI slipping off the radar, there’s another hard truth HR teams are facing: the very real possibility of redundancies. Retail is one of the UK’s biggest employers: around 3 million people work across the sector. Now though, nearly half (46%) of organisations say job cuts are on the horizon.

Redundancies affect more than the balance sheet. They impact morale, create more pressure for employees remaining in the organisation, and can chip away at service quality and brand trust.

HR leaders are in a tricky situation. They don’t want to let people go, but they sometimes have to for the sake of the business. But, wherever possible, now’s the time to protect your people. Look at internal mobility opportunities, get creative with your workforce planning, and if redundancies are unavoidable, handle them with care.

Conclusion: Retail and wholesale HR are rising up to the challenge

Retail HR hasn’t had it easy this year, but what’s clear is that they’re not backing down. Instead, HR teams are rolling up their sleeves and getting strategic through redesigning shifts, optimising resources, and rethinking what good workforce planning looks like.

Most importantly, they’re not doing it alone. Strong collaboration with leadership means HR isn’t just reacting, it’s helping to steer the ship.

It’s not perfect. Neither is it easy. But retail and wholesale HR professionals are showing what it looks like to adapt under pressure and lead with purpose.

Key takeaways

  • Retail and wholesale HR professionals are adapting to economic uncertainty.
  • 71% of those surveyed are reshaping their people strategies.
  • 80% of respondents to the survey are collaborating with leadership to tackle business challenges head-on.
  • In spite of rising redundancies, retail HR professionals are stepping up.

“What’s the mood?” Read the full report

Learn more about how retail HR professionals are navigating the challenges and opportunities of 2025, so you can benchmark your own HR strategy.