More than two in five UK retail employees (43 per cent) were at risk of quitting their jobs between July and September this year, an 11 per cent increase from the previous three months of 2024, according to the Retail Trust and AlixPartners’ latest Retail People Index.
The index, which surveyed 1,100 UK retail employees in July, August and September, found the percentage of people working whilst physically or mentally unwell, also increased to 41 per cent over this time. This is a 14 per cent year-on-year increase, and a seven per cent rise from the previous quarter of 2024.
Younger retail workers, aged 19 to 24, and LGBTQ+ employees had the biggest "flight risk", or propensity to quit, of 47 per cent, due to feeling more anxious and depressed about work and also least likely to feel they were recognised for doing something well.
Retail employees aged 19 to 34 showed the highest levels of presenteeism, where employees work when physically or mentally unwell, with half working while unwell.
And female workers experienced some of the biggest mental health declines over the period, with an overall wellbeing score drop from 72 per cent in July to 52 per cent in September for women aged 55 to 64. Those aged 25 to 34 also experienced lower wellbeing in July and September.
Staff were asked, by the Retail Trust’s and employee engagement platform WorkL’s online happiness assessment, about their mental and physical health and how valued and fulfilled they feel, to create an overall wellbeing score for the Retail People Index.
Questions around pay, recognition, relationships with managers, work-related anxiety and workplace safety were among those used to separately help calculate the likelihood of them leaving their jobs or working while unwell between July and September 2024.
Chris Brook-Carter, chief executive of the Retail Trust, said, “There are often unrealistic expectations that the summer will be a less stressful time for people working in retail, but the reality is it often brings added pressures for working parents and those having to put in extra shifts to cover colleagues’ holidays.
“That's why it's important employers don’t underestimate the support their staff members need during the summer months, especially as they'll need a happy and healthy workforce to rely on as they gear up for the busy shopping period at the end of the year.
“Investing in staff wellbeing and retention during this crucial period will allow retailers to be more productive and successful for the rest of the year, thanks to the fundamental link between the hope, health and happiness of a business’s workforce and its economic resilience.
“Thank you to AlixPartners and to our data partner WorkL for their support in creating this valuable index. Our hope is that businesses from across the retail sector and beyond can now build this insight into their wellbeing strategies as they look to the tailored support their people will need in 2025.”
Laura Bond, director at AlixPartners said, “Retail employees clearly feel increasingly unsettled. These year-on-year insights underscore the uncertainty felt across the industry – and the autumn Budget likely will have heightened tensions further as people brace for potential job cuts and role shifts in 2025.
“As retail leaders respond to the Budget, they have an opportunity and responsibility to step up and engage meaningfully with their teams. Supporting people through this period isn't just the right thing to do – it’s a key driver of business performance.
“High-performing retailers consistently demonstrate effective employee engagement and a commitment to advancing diversity and inclusion. These are critical strategies for navigating challenges, while fostering resilience and growth within the organisation.”
As UK and European retailers gear up for 2025, the grocery sector is poised for transformation, driven by renewed focus on fundamental retail practices, new revenue opportunities, and the growing demand for health and sustainability initiatives., highlights a new report.
A new report from IGD outlines six key trends that are set to shape the future of the grocery sector across the UK and Europe.
1. Optimising Retail Fundamentals for Success
While new technologies capture attention, UK and European retailers are reinforcing core retail fundamentals like stock availability, pricing, and promotions. Innovations like shelf-edge cameras and AI-driven stock management are improving these essential areas, ensuring a seamless shopping experience.
2. Exploring New Revenue Streams
As operating costs rise, UK retailers are diversifying their revenue sources by leveraging e-commerce technology, data monetisation, and B2B services. Tesco’s launch of Transcend, enabling other grocers to use its fulfilment tools, exemplifies the growing interest in non-traditional retail income streams.
3. Evolving Store Formats for Greater Flexibility
Retailers are adopting adaptable store designs that cater to evolving consumer needs and seasonal trends. The rise of modular store formats that feature event spaces, like FairPrice Finest in Singapore, is gaining traction in Europe, offering dynamic, customer-focused shopping experiences.
4. Seamless Connected Commerce
UK and European retailers are enhancing the integration of physical and digital retail, focusing on omnichannel experiences, loyalty programmes, and smart checkout solutions. AI-powered tools, like Target’s Store Companion, are simplifying store operations while enhancing customer engagement.
5. Health and Wellness Products Lead the Charge
Driven by growing health-conscious consumer demand, retailers in the UK and Europe are introducing more functional foods and health-focused products. The rise of initiatives like Cycle.me demonstrates a shift towards combining wellness with convenience, offering consumers greater choice in healthy, sustainable products.
6. Accelerating Sustainability Commitments
Retailers are intensifying their sustainability efforts, with a focus on reducing food waste, plastic packaging, and energy usage. Germany’s EDEKA Dorfmann sustainability store sets a new benchmark for eco-conscious retail, inspiring UK and European retailers to meet ambitious sustainability goals through innovative practices.
Stewart Samuel, Director of Retail Futures at IGD, commented, “As we move towards 2025, retailers must build on the foundation of global trends while ensuring they stay agile to rapidly evolving consumer demands.
"Focusing on the basics – stock availability, pricing, and promotions – remains critical to success. But at the same time, leveraging new revenue streams, embracing technological innovation, and championing health and sustainability are no longer optional; they are essential to staying competitive.
“Retailers who can successfully integrate these areas will not only future-proof their businesses but also build stronger relationships with increasingly conscious and demanding consumers.”
Demand for “hyper” limited-edition whisky produced by smaller, independent distilleries is on the rise with experts claiming that it is going to be the "next big thing" in the alcohol aisle.
Despite the onset of Dry January and a third of the population opting to steer clear of alcohol, whisky sales at Selfridges are defying the trend, with demand for exclusive, limited-edition bottles booming, The Times stated in a report.
The high-end department store, with flagship locations in London, Manchester, Birmingham, and a strong online presence, reports a significant uptick in interest for “hyper” limited-edition whiskies crafted by smaller, independent distilleries.
This marks a shift in the whisky market, which has traditionally been dominated by large Scottish and American producers.
According to Selfridges, sales of lesser-known brands have more than doubled over the past year, prompting the retailer to expand its whisky portfolio to over 1,000 bottles in 2023, with further growth planned for this year.
A particular focus has been on single cask releases, which yield between 200 and 300 bottles, depending on the “angels’ share”—the amount lost to evaporation during ageing.
One recent success story is The Hearach, a single malt from the Isle of Harris, whose 227-bottle single cask release sold out within an hour.
Andrew Bird, Selfridges’ head of food, attributes the surge to customers’ desire for uniqueness and exclusivity.
“We all love the idea of discovering and enjoying something that’s one-of-a-kind, that no one else has,” The Times quoted Bird as saying.
Many customers are buying these whiskies to collect, gift, or savour for special occasions.
The trend has been a boon for independent distilleries like Lochranza on the Isle of Arran. Stewart Bowman, Lochranza’s distillery manager, explained that the art of crafting whisky often involves a touch of serendipity.
“Whisky isn’t an exact science. We can fill identical barrels side by side, and they’ll come out differently. Occasionally, we stumble upon casks that are uniquely exceptional—it’s a bit of magic,” he said.
Bowman highlighted their latest limited-edition release, a 12-year-old single malt aged in a second-fill sherry hogshead cask, which boasts a “very sweet” profile with caramel and zesty orange notes.
“Limited editions represent a growing part of our business. Each one is a unique expression of what we do,” he added.
The growing appetite for rare whiskies reflects a broader consumer trend: a willingness to invest in distinctive products that could become “the next big thing.”
Sales of high-end sparkling teas soared over Christmas as it replaced champagne during festive toasts, suggesting that tea is winning new loyal fans as a soft drink version with “wellbeing” powers as well as a headache-free alternative to booze.
Sparkling tea is fast becoming a staple of the “nolo” ranges of supermarkets and drinks specialists amid the annual “dry January” marketing blitz.
The Buckinghamshire-based drinks company Real says demand for its sparkling tea, which costs about £10 a bottle, is soaring, The Guardian reported.
Over Christmas, sales of its fizz, which includes green tea-based Dry Dragon and Peony Blush (from white peony tea), were 72 per cent and 60 per cent up on 2023 levels in Ocado and Waitrose respectively. The company is also behind the wine merchant Berry Bros & Rudd’s £17 sparkling tea, of which 1,600 bottles were sold over the holiday period.
Last year, Twinings entered the fray with its own canned sparkling tea aimed at health-conscious consumers. The cans are almost £2 each but feature in some supermarket “meal deals”.
Apart from alcohol range, sparkling tea has also started giving competition to cola and lemonade for the lunchtime trade in supermarket drinks chillers.
The market is also seeing a huge demand of bubble tea, kombucha and even energy drinks containing tea.
According to Polina Jones, a food and drink expert at the data company NIQ, Britons are not necessarily “falling out of love” with tea, they are just drinking it in a different way.
A recent poll by the research company Mintel suggested that less than half of the nation – 45 per cent of adults – drink standard breakfast tea at least once a day. The amount being bought by Britons has tumbled by almost a fifth since 2020, it says.
Research points to a big opportunity for non-alcoholic drinks that actually taste good. A Mintel poll conducted last year found 59 per cent of adults had limited their consumption in the past 12 months, or did not drink alcohol.
Alcohol moderation is now a “mainstream” trend, according to Mintel’s Kiti Soininen. She points to the presence of tannins in tea, which are also a crucial component in the flavour profile of many wines.
“The absence of that pleasingly ‘mouth-drying’ element of tannins can be a factor in why alcohol alternatives taste too thin or too sweet,” The Guardian quoted Soininen as saying.
However, sparkling tea faces the “same hurdle as other alcohol alternatives in justifying its price” as just over half of adults told Mintel that the price of “nolo” drinks puts them off.
Food price inflation remained stable last month though experts are warning that with a series of price pressures on the horizon, shop price deflation is likely to become a thing of the past.
According to figures released by British Retail Consortium (BRC) on Thursday (9), shop price deflation was 1.0 per cent in December, down from deflation of 0.6 per cent in the previous month. This is below the three-month average rate of -0.8 per cent. Shop price annual growth remained at its lowest rate since August 2021.
Non-Food remained in deflation at -2.4 per cent in December.
Food inflation was unchanged at 1.8 per cent in December. This is in line with the three-month average rate of 1.8 per cent. The annual rate has eased considerably since the start of the year and inflation remained at its lowest rate since December 2021.
Fresh Food inflation was unchanged in December, at 1.2 per cent. This is slightly above the three-month average rate of 1.1 per cent. Inflation was its lowest since November 2021.
Ambient Food inflation edged up to 2.8 per cent in December, from 2.7 per cent in November. This is in line with the three-month average rate of 2.8 per cent and remained at its lowest since February 2022.
Commenting on the figures, Helen Dickinson, Chief Executive of the BRC, said, “Retailers discounted heavily for Black Friday this year as they attempted to make up for weaker sales earlier in the year.
"However, the later Black Friday timing brought many of the non-food discounts into the measurement period, making non-food prices look more deflationary than the underlying trend. With food inflation bottoming out at 1.8 per cent, and many price pressures on the horizon, shop price deflation is likely to become a thing of the past.
“As retailers battle the £7 billion of increased costs in 2025 from the Budget, including higher employer NI, National Living Wage, and new packaging levies, there is little hope of prices going anywhere but up.
"Modelling by the BRC and retail CFOs suggest food prices will rise by an average of 4.2 per cent in the latter half of the year, while Non-food will return firmly to inflation.
"Government can still take steps to mitigate these price pressures, and it must ensure that its proposed reforms to business rates do not result in any stores paying more in rates than they do already.”
Mike Watkins, Head of Retailer and Business Insight, NielsenIQ, added, “During December, shoppers benefited from both lower inflation than last year and bigger discounts as both food and non-food retailers were keen to drive sales after a slow start to the quarter.
"However, higher household costs are unlikely to dissipate anytime soon so retailers will need to carefully manage any inflationary pressure in the months ahead.”
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Tesco reveals shop management changes, impacting thousand of jobs
Tesco reveals shop management changes, impacting thousand of jobs
Tesco has recorded its “biggest ever Christmas”, with the UK’s largest supermarket chain landing its biggest share of the festive shopping trolley since 2016.
The grocer on Thursday (9) revealed that sales at established UK stores rose 4 per cent in the six weeks to 4 January, with fresh food performing particularly strongly and clothing and homeware sales also up.
Tesco now controls 28.5 per cent of the grocery market and gained share from premium and discounter rivals over the 12 weeks to 29 December, according to the analysts Kantar.
Tesco added that Booker saw a core retail growth of +1.3 per cent as its symbol brands continue to perform well despite a subdued market backdrop. Overall Booker performance reflects continued decline in the tobacco market.
Ken Murphy, Tesco’s Chief Executive, expressed pride in the team's efforts during the Christmas period, highlighting the retailer’s focus on delivering value, quality, and service to all customers, regardless of how they chose to shop.
Murphy noted that Tesco has maintained its position as the UK’s cheapest full-line grocer for over two years while improving product quality across its ranges.
The festive success was supported by an additional 28,000 colleagues, helping to provide exceptional in-store and online experiences for customers. Murphy also extended his gratitude to the entire Tesco team for their hard work and dedication.
Looking ahead to 2025, Tesco remains focused on continuing to offer top-quality products and outstanding shopping experiences to its customers.
Sofie Willmott, Associate Retail Director at GlobalData, offers her view, “Tesco has reported higher sales growth than Aldi over Christmas evidencing how the market leader’s focus on product and service innovation, as well as value for money, has paid off, strengthening its position in the market.
"Despite Aldi opening stores throughout 2024, including 11 new stores in November and December, which will have driven total growth of 3.4% (for the four weeks to 24 December 2024), Tesco achieved better like-for-like growth (for the six weeks to 4 January 2025) of 4.1%, up against strong comparatives.
Tesco continues to outperform the UK food and grocery market constantly improving its proposition to meet shoppers’ needs in whichever way it can, for example, through its online marketplace which launched in June and roll out of Whoosh rapid delivery to more stores.
“UK food sales rose 4.7 per cent driven by volume growth, with sales being particularly strong in fresh food and its Finest range seeing impressive growth of 15.5 per cent as shoppers treated themselves over the festive period.
Willmott added that Tesco is standing out amongst its peers currently, but it must continue evolving in its focus areas, such as product innovation, online and showcasing value, to maintain momentum.