In a time of disruption, it’s uncertainty, not automation that poses the biggest challenge to the retail workforce.

Retail leaders are no strangers to disruption. But in the latest McKinsey Talks Talent podcast, a deeper and more elusive challenge emerged: uncertainty. Not just economic uncertainty, but a structural ambiguity that is reshaping how retailers hire, train, and retain their frontline teams.

“The labor market still looks strong in the headlines,” said McKinsey senior partner Bryan Hancock. “But underneath, there are shifting currents that aren’t being picked up yet in the data.”

Let’s unpack what those currents mean for retail.

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The Myth of Stability

Official statistics show low unemployment, steady job growth, and a tight labor market. But as retail leaders know, store-level hiring remains difficult, retention is spotty, and engagement is uneven.

That’s because the forces shaping the frontline today don’t show up neatly in monthly reports:

• Automation is fragmenting roles. AI isn’t replacing jobs wholesale—it’s changing what people do. Cashiers now need to handle kiosks; associates juggle apps alongside customers.
• Entry-level roles are evaporating. As AI handles more routine tasks, fewer entry points exist for new workers to learn and grow.
• Worker expectations are rising. Gen Z wants flexibility, purpose, and values alignment. And they’re not afraid to leave if they don’t get it.

“While automation impacted a lot of manual jobs, generative AI has impacted a lot of knowledge worker jobs: i.e., marketers, HR professionals, accountants, software developers.” — Svenja Gudell, Chief Economist, Indeed

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What Uncertainty Looks Like on the Floor

For retail operations, this uncertainty shows up in familiar pain points:

• Shift gaps and burnout from rigid scheduling
• Compliance risk as regulations shift and training falls behind
• Lack of bench strength due to turnover and fewer development opportunities

Add to that generational friction: older employees, accustomed to consistency, are working alongside younger ones who demand adaptability.

“The workforce has diversified—not just in identity but in expectations,” said Hancock.

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Leading Through Ambiguity

So what should retail leaders do?

1. Orchestrate your tech. Avoid the duct-tape approach. Integrate scheduling, communication, learning, and task management into a single ecosystem.
2. Invest in flexibility. Tools that enable self-scheduling, remote training, and real-time tasking create resilience.
3. Double down on development. Microlearning and performance recognition are the new frontiers of career advancement.
4. Design for generational diversity. One-size-fits-all is obsolete. Your tech and programs should flex for different work styles.

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Final Thought

The biggest challenge facing the retail workforce today isn’t automation or attrition. It’s uncertainty: not knowing what jobs will look like in 6 months, not having a clear path for growth, and not seeing how frontline work fits into a future-ready strategy.

The winners in this next era of retail won’t be those who chase trends. They’ll be the ones who build confidence and clarity on the frontline.

As McKinsey put it, the data isn’t telling the whole story. But your people are.

If your facing the same uncertainity with your labor force, feel free to reach out to me to help you get clarity at jim.thomas@workjam.com Listen to the full episode of McKinsey Talks Talent here

Jim helps companies consolidate their frontline technology and create a better customer experience that drives revenue for WorkJam, a global leader in the digital frontline workplace. He has extensive experience in sales, operations, and marketing, having worked with U.K.G. (Ultimate Kronos Group), Mosaic Consulting Group, and J.D.A

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