Digital skills high on retail鈥檚 shopping list, according to new UKCES report
Retailers need to attract graduates and workers with digital and customer services skills to boost productivity in the sector.
The report 鈥楽ector insights: skills and performance challenges in the retail sector鈥� highlights that recruiting technically skilled people and upskilling the existing workforce will be crucial for the sector to take full advantage of the changing retail landscape.
Improving productivity levels is particularly important, as the government鈥檚 recently released productivity plan 鈥楩ixing the foundations鈥� identifies wholesale and retail as one of five sectors in the UK representing a 鈥減roductivity shortfall鈥�.
Skilled workers are in short supply as many choose careers other than retail, and nearly one in five retail establishments reported skills gaps. UKCES鈥檚 research says that the sector needs to improve its image, develop clear progression routes and promote opportunities to use technology-based skills in a higher-level retail career to undergraduates and graduates.
Online shopping currently represents 12% of the total value of retail sales, and retailers face the challenges of meeting the expectations of increasingly tech-savvy customers and providing an 鈥渙mni-channel鈥� shopping experience, with a seamless blend between online and offline offers.
The UKCES report highlights the importance of customer service assistants to delivering this consistent, high quality service in-store. Customer service workers make up half of the UK鈥檚 3.1 million retail employees, but retailers are reporting that it鈥檚 difficult to find staff with good customer service skills, and that there are gaps in the customer handling skills of existing staff.
The research also found that older workers in particular will need to improve IT skills to keep pace with rapid technology changes in the sector.
Dr Vicki Belt, Assistant Director at UKCES, said: 鈥淭he wholesale and retail sector is the largest sector in the UK economy by employment, but sector productivity is relatively low. There is scope to improve productivity by making full use of existing talent and ensuring that workers have the opportunity to build their skills and experience, and progress within the sector.鈥�
To this end, UKCES is working alongside the Department for Work and Pensions to develop progression pathways for low paid workers in the retail and hospitality industries. The recently proposed increases to the national minimum wage may also make the sector more attractive to entry-level workers and encourage employers to train and retain experienced staff.
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