Where Have all the Retail Managers Gone?

The Impact of Flattening Retail Leadership

I have been in retail for a long time—long enough to see retail initiative pendulums swing from one extreme to the other time and time again. Retail never seems comfortable in the middle. With the seemingly constant evolution we have to go through in order to keep up with our customers’ changing minds and needs, with technology advances, and with the many local and global external factors beyond our control, we tend to get pulled over to the far end of the spectrum…before swinging back to the opposite side again. It’s a whiplash environment that makes every day exciting—and challenging.

In this fast-evolving, ever-changing retail landscape, one of the most pressing challenges we face today is the diminishing presence of effective managerial roles within the stores and field leadership and in our operational environments. As a recent Wall Street Journal article put it, Where Did All the Managers Go? This piece highlights a concerning trend that is cropping up across corporate America and that we have seen in particular in the world of retail: the flattening of managerial roles and the strain it places on both leaders and their direct reports.

Retail leaders today are expected to do more with less, often stretched across an overwhelming number of direct reports. This shift has significant implications:

?Burnout Among Leaders: Burdened with excessive workloads and constant pressure, retail leaders are worn out, and the role is becoming less attractive and more unsustainable in the long run. “Do more with less” is also leaving managers unable to focus on the strategic leadership and development aspects of the job. They simply don’t have the ability to be strategic or long-term thinkers and planners when they’re struggling to keep up with the daily demands of the job. Planning for the future needs of their district, region, store, or, most importantly, their teams and the human factors of leadership? That’s become a luxury for many of today’s retail multiunit and senior leaders.

?Neglected Development of Direct Reports: With leaders busy juggling multiple responsibilities, their frontline store teams are missing out on essential coaching and mentoring. That means employees aren’t getting the growth opportunities they need to support not only their career progression but also the retailer’s succession planning strategies. These employees will end up looking for other opportunities to increase their pay and continue their career. More often than not, today they’re looking outside of the retail industry.

The common refrain in retail has always been that you can trace a good performing store back to a talented, high-performing store leader—a leader who doesn’t just manage store operations, stock, and merchandising sets, but who inspires and engages their teams to love the industry and to grow and develop so they can achieve their individual and the store/company goals. These were the stores where future store leaders and future district managers were hired, nurtured, and developed, becoming a springboard for succession. This flattening of leadership and growing gap will have a substantial ripple effect on the retailers themselves.

?Diminishing Talent Pipeline: When managers are unable to invest in their teams, the organization will struggle to build a strong leadership bench, and that ultimately affects long-term business success. The impact may not be felt immediately, yet in time, it will show up as a severe deficit in talent. And unfortunately, by that time, it will be too late. Yes, the pendulum will swing back again, and eventually, some correction will take place. But the losses—in time as well as talented or untapped resources—will stack up in the meantime.

Ongoing staffing shortages and the difficulty in sourcing quality, experienced people have exacerbated the need to hire and grow more talent. The cold hard truth is this: The old go-to recruiting processes are not working in today’s retail environment.

Adding to these challenges, many companies are also scaling back or entirely eliminating their Diversity, Equity, and Inclusion (DEI) initiatives. This move not only affects the human-centered focus of retail leadership but also compounds the problem by limiting support structures that help foster an inclusive and engaged workforce.

Furthermore, the increasing reliance on AI-driven solutions in retail operations brings both opportunities and challenges. While AI can enhance efficiencies in areas such as inventory management and customer service, it cannot replace the human touch necessary for developing and motivating retail teams.

The Future of Retail Leadership and Development: Leveling the Path Forward

These are serious, business-impacting issues that could have long-lasting consequences for retailers. Now is the time to reexamine and reprioritize your leadership strategies with a more balanced approach to ensure better results. This includes:

• Reevaluating Leadership Structures: Assess whether your current organizational design truly supports the needs of your workforce and customers.
• Investing in Retail Leadership Development: Provide managers with the tools, training, and support they need to lead effectively in today’s demanding environment, and provide the ability to develop future leaders on an ongoing basis.
• Reinforcing DEI Commitments: Ensure DEI remains a core part of your organizational strategy to foster an engaged workforce that reflects your customer base and has the mix of experiences and perspectives necessary to thrive in today’s world.
• Leveraging AI Thoughtfully: Use AI to complement—not replace—human leadership capabilities. The efficiencies that AI can provide should free up your leaders so they can focus more on the uniquely human aspects of the job that only they can fulfill.

Instead of reacting with pendulum swings to the extremes, many of the retailers we work with are very intentional about taking a more strategic approach with their goals and planning process. That deliberate mindset pays off. It creates an environment with more stability and sets the stage for succession as a constant practice, not an as-needed event. As a result, these retailers are continually growing a cadre of leaders who are energized and inspired to achieve big goals and create and sustain the future.

Now as always, retail success hinges on the ability to cultivate resilient, capable leaders who can motivate and guide their teams through change. As we navigate the shifting tides of retail today, it’s clear that a renewed focus on leadership development and human connection is more critical than ever.