UK Retail Workforce At Record Risk Of Leaving Amidst Declining Wellbeing

More than half of the UK's retail workforce was at risk of leaving their jobs this spring, marking the highest such figure recorded in the last two years. A new report reveals that 54% of retail employees were considered a 'flight risk' between April and June, an alarming 19% increase compared to the previous year. This significant finding comes from the latest Retail People Index, a collaborative effort by the Retail Trust and AlixPartners, which tracks wellbeing across the sector.

The Retail People Index, which surveyed over 600 employees, calculates flight risk based on responses to questions concerning pay, recognition, professional development, and work-related anxiety. The overall wellbeing score for retail staff plummeted by seven points year-on-year, from 66 to 59, dipping below the critical 60% threshold. Furthermore, the number of retail employees working while feeling physically or mentally unwell, a phenomenon known as presenteeism, rose by 12% to affect 44% of all staff, reaching its highest level in 18 months.

These internal challenges within the retail workforce are set against a backdrop of wider industry contraction. The report’s findings align with recent data from the Office for National Statistics (ONS), which indicated 93,000 fewer retail jobs in March 2025 compared to March 2024. The ONS also noted that the retail sector experienced one of the most significant drops in job vacancies between May and July 2025 compared to any other sector, exacerbating concerns around job security.

A particularly concerning trend identified by the Index is the decline in happiness among retail managers, whose levels fell by 11%. This marks the first time since the Index's inception that managers have reported feeling unhappier than non-managers. Many managers expressed feelings of being unfairly paid and unrecognised for their efforts, often tasked with leading under-resourced teams. Concurrently, the proportion of retail workers reporting a positive relationship with their manager also dropped to a two-year low, highlighting a growing disconnect within team structures.

Chris Brook-Carter, chief executive of the Retail Trust, commented on the findings, noting, "Our research has previously shown retail workers tend to be at their happiest going into the summer, once the busy winter is well behind them, but ongoing insecurities around jobs, finances and the political climate are continuing to take their toll on people working in retail." He further explained that rising employment costs are placing immense economic pressures on the sector, with managers bearing the brunt as they strive to maintain under-resourced and often unhappy teams, frequently feeling inadequately supported.

Brook-Carter urged employers to address these issues, stating, "The financial pressures impacting the retail sector are largely outside of employers’ control, but there is an urgent need to address the particular burden this is now having on managers and to prevent the knock-on effect it will also have on their teams." He emphasized the crucial role of providing more training and support for leaders to look after themselves and their teams, warning that without such intervention, a further decline in morale, higher turnover, and greater instability are inevitable at a time when resilience is paramount.

Laura Bond, a director at AlixPartners, echoed these concerns, underscoring the urgency of the situation. "This quarter’s Retail People Index reveals urgent challenges for retailers. With 54% of employees looking to leave their roles – the highest flight risk since our tracking began – and wellbeing scores dropping to 59%, below the critical 60% threshold, it’s clear that employees are struggling," she stated. Bond concluded that retailers must fundamentally shift their workplace culture, investing in manager support, overall morale, and staff wellbeing to prevent continued talent loss, weakened service, and operational strain in an already challenging market.