Key figures
– U.S.A.: 60.5% turnover in 2023 (Pedagog)
– U.K.: 57.3% turnover in 2023
– France: this rate is estimated between 30% and 50%, twice as high as the average turnover rate in France, which was 15% in 2021 (INSEE).
– In-store sales staff use an average of 12 different applications every day (Yoobic)
THE CONTEXT
Over the past 10 years, the retail sector has seen an increase in the number of “client facing” technologies, but field teams, who are at the heart of the business and customer relations, have been neglected. Today, they are left with outdated solutions, using an average of 12 different apps in the course of a day, according to Yoobic.
And yet, since Covid-19, the retail sector has been faced with major recruitment challenges, both in the U.S.A. and in Europe. In 2024, HR Directors explained this disaffection by several factors which include intense competition, the difficulty of combining personal and professional life (staggered working hours, weekend work) and low salaries. “What’s keeping HR Directors up at night, at the moment, is having enough staff to run their stores”, said Raphaël Kattan, Founder of Talenco. An example is a European specialised retailer, which has re-designed opening hours to align with 10% fewer staff.
Retail tech for sales staff: the scope of our analysis
–store-headquarters communication (merchandising and promotional plans, product launches and reporting)
–work schedules (creation and management of team schedules, real-time modifications, consultation by sales staff on the app)
–client-telling / messaging: these solutions, which are now mature in the luxury sector, work in tandem with CRM apps. They enhance the vendor experience.
–HR management (HR management platforms, timesheets or leave requests)
Staff turnover rates penalise growth
According to BPCE and the French Franchise Association, in the 1st quarter of 2024, 47% of SME and VSE managers (this panel includes franchisors) indicated that recruitment difficulties were among the 3 main obstacles to the development of their business. This comes ahead of the outlook for deteriorating consumers’ demand (45%).
In France, there is no official data on staff turnover. According to Elsinore, retail and logistics are particularly affected, with a significantly higher rate in the Paris region. This averages at 30% with peaks at 50% and increasing. However, the situation varies from one retailer to another: some are highly specialised and manage to retain aficionados (Decathlon, Le Vieux Campeur, Chanel, Tiffany). Others, in the F&B, supermarket or discount sectors, are more seriously affected.
