Two-fifths of frontline staff believe retail stores won’t exist by 2029

Where do those on the frontline of UK retail see the store’s role in the future? A staggering 40% of store staff agree with the statement that “there will be no stores in five years’ time” – up 2% from 2023.

This growing pessimism is echoed by the 13.6% of store staff who say online competition is their main concern about working in the retail industry today, and the further 9.6% who say the poor financial outlook for the sector is their primary worry.  

This is according to fresh data in Retail Week and Workday’s latest annual report, Talking Shop, which incorporates exclusive (and anonymous) interviews with 500 UK store staff to understand what motivates them, the challenges they are navigating and the opportunities that lay ahead. 

The forecast for the demise of stores is undoubtedly a bold prediction against the prevalence of multi-year leases throughout retail, as well as pledges from UK operators ranging from Currys and Jollyes, to M&S and Aldi to invest substantially in stores in the coming years.  

Nevertheless, this outlook does signal a lack of optimism regarding the longevity and dynamism of physical retail by those working on the frontline of the industry. 

Outside of this pessimism, there were several key areas in which shopfloor workers believe the store of tomorrow will evolve.

For instance, 89% of store staff believe future stores will incorporate more technology, while 77% think stores will need to offer consumers more personalised services.   

Getting experiential 

Alongside technology and personalisation, 75% of shopfloor workers believe the store of the future will be more experiential.  

This is an area of investment and expansion for many retailers – both those with a smattering of stores and others with a more established retail footprint. 

Telecoms retailer EE, for example (latest store pictured above), has ploughed £6m into opening 10 new flagship stores across the UK within the next year which invites shoppers to see the “future face of retail”. The stores will include several “experience zones” including a dedicated gaming area, “taste of the future” smart home zone and a “digital spa”, where customers can use technology to detox from their screens.

Elsewhere, longstanding London department store Liberty recently invested in a substantial overhaul of its fragrance department in March 2024. Shoppers can now book guided tours or personal consultations in luxury private suites, and a new concierge service sees perfumes organised by scent families rather than brands for shoppers.