Industry Overview

Experience‑led teams protecting sales, service and reputation

Retail has become a high‑velocity environment. Customers move seamlessly between stores, online, click‑and‑collect and delivery, and they expect availability, speed, and a consistently satisfying experience at every touchpoint. At the same time, retailers are operating under sustained cost pressure, heightened risk, and increasing operational complexity especially across front‑of‑house safety and back‑of‑house fulfilment.

Industry Challenges

The challenges are real, the pace is fast, and the stakes are high.

01
Retail crime, violence and abuse are escalating
UK retailers are reporting record levels of theft, violence and abuse. The BRC Retail Crime Survey 2025 highlights that violence and abuse rose over 50% year‑on‑year, reaching 2,000+ incidents every day, with 70 daily incidents involving a weapon, alongside over 20 million theft incidents and a total retail crime cost (including prevention) of £4.2bn.

This drives a dual requirement: stronger protection for colleagues and customers, and smarter operational security that doesn’t negatively impact the customer experience.
02
Margin squeeze from “sticky” cost headwinds
Retailers continue to face persistent cost pressure particularly labour and operating costs which constrains investment in stores, technology and experience. PwC notes ongoing margin squeeze from cost headwinds and the disproportionate impact of rising labour costs on retail.

BRC commentary also links rising inflation pressures to higher employment and utility costs filtering through to consumer prices, reinforcing the challenge of protecting value while remaining competitive.
03
Omnichannel fulfilment, last‑mile performance and returns complexity
Consumer expectations for speed, flexibility and smooth returns continue to rise and the “last mile” is often the most expensive and failure‑prone part of the journey. A 2024/25 retail and logistics survey report notes that many retailers see last mile as the hardest step, with a significant share of transportation cost concentrated there.

E‑commerce leaders also report ongoing last‑mile cost rises and rising customer expectations around faster delivery, flexible time windows and returns, putting pressure on operational models and service levels.
04
Cyber risk is now a retail operational risk not just an IT risk
The UK’s NCSC warns that cyber incidents can disrupt real operations, citing empty shelves and stalled production lines as visible impacts, and emphasises that cyber resilience is a leadership responsibility. For retailers, this means aligning business continuity with physical operations ensuring stores and supply chains can keep functioning when systems are disrupted.
05
Workforce retention, safety and availability
Retail employment pressures are intensifying. BRC reporting notes a long‑term decline in retail jobs and highlights rising employment costs, with concern about further roles at risk.

Separately, workforce research into hourly retail roles indicates high intention to leave among frontline workers, with scheduling flexibility and operational strain affecting retention increasing pressure on day‑to‑day store performance.