Ensuring Profitability and Driving ROI in Retail for 2025

One of the most immediate concerns raised was the unexpected financial strain caused by rising costs, particularly the increase in National Insurance contributions, which many retailers admitted had caught them off guard. “We were completely blindsided by the NI increase,” one participant noted. Compounded by the upcoming Workers’ Rights Bill, which would require businesses to cover the first three days of employee sickness pay, the industry is facing even greater cost pressures.

For many retailers, cutting staff costs isn’t an option, as they are already operating at minimal staffing levels. Some businesses run single-manned shops, while others acknowledged they had some flexibility to trim excess, but for most, reducing headcount simply isn’t feasible. One participant summed up the challenge: “We’ve already taken the ‘fat’ out—we have nowhere to go.” On top of that, the struggle to fill supervisor and managerial roles is adding to the strain, with retailers finding it increasingly difficult to attract and retain talent for leadership positions.

The conversation also highlighted the need for better, data-driven insights to help retailers identify where inefficiencies and costs are creeping in. “We need to be really drilling down and showing where the issues are,” one participant stated. Many agreed that having clear, actionable insights is critical to making informed decisions on workforce planning, store operations, and cost control.

AI and automation were a major focus, but it was clear that many businesses are still in the early stages of AI adoption. While some have begun exploring AI for forecasting and automation, most are still finding their feet, primarily using ChatGPT and other basic tools. “AI needs to be balanced. It’s tricky to nail it down – too many moving parts,” one attendee commented, reflecting the uncertainty around how to implement AI effectively in retail.

Technology adoption continues to evolve, however, retailers are still working to find the right balance between technology and real-world store operations. “How do we find the balance between tech and what it really means for store operations?” one participant asked. The debate underscored the importance of ensuring that AI and automation complement existing processes rather than disrupt them.

The conversation reinforced the need to integrate technology thoughtfully, ensuring that AI adoption is guided by clear financial and operational objectives.

For those who couldn’t attend, future discussions will continue to explore these critical themes, ensuring that retailers remain agile and adaptive in an increasingly challenging market.