by BYT

As this week's depressing BRC sales figures confirm, the tough times in retail look set to continue for a while longer. Rising interest rates and ever increasing gas and petrol prices are impacting consumer spend, leaving the average person with less spare cash to spend in the shops. Compounded by a poor summer, retailers' bottom lines have been hit and there is a pressure to cut costs and increase sales.

What does this mean for those employed in retail? Working environments are pressured, marketing budgets have been slashed, bonuses are not available and workloads have increased. Retail organisations are fighting to be first in the marketplace with sales initiatives to entice consumers back to the shops. A vicious cycle is emerging: retailers are demanding more from employees but won't or can't provide the same rewards or opportunities. Frustration is leading to unprecedented increases in churn rates.

As MD of BYT, a headhunting company that specialises in placing commercial high-flyers, I'm witnessing a state of flux within the industry. Concern over the future is prompting the best employees - the ones the industry needs to keep - to start looking at new opportunities. Retail high flyers from the likes of WHSmiths, Sainsburys and Marks & Spencers have been seeking our advice as they recognise the exciting opportunities offered by more buoyant sectors of the economy.

Moreover, as financial services companies increasingly sell standardised products through indirect distribution channels (ie. supermarkets) and consultancies face a demand for consultants with deep industry knowledge, the potential for cross-over is accentuated. BYT has been approached by a number of leading banks, consultancies and FMCG companies, who, recognising synergies in the skill-sets, are looking to poach the cream of the crop from the large retail players. We have experienced a 50% increase in the amount of companies specifically targetting the retailers, and a 30% increase in applications from high flyers in the retail industry.

So how does the retail industry fight back? In a nutshell, by not compromising on talent. Addressing current financial pressures with short-term cost saving measures will only spell trouble in the future. Astute players are recognising the need to offer long-term incentives and fast-track career paths to tie in the most talented employees.