Retail’s Frontline Retention Crisis: It’s About Career Visibility, Not Wages
The Real Reasons Frontline Workers Leave
In 2025, retail and distribution leaders face a pressing challenge: retaining frontline employees.
While competitive wages are essential, they are no longer sufficient. The core retention issue lies in the lack of visible, tangible career paths for frontline workers.
Data reveals that the top reasons for frontline retail employee attrition include:
- Lack of career development opportunities
- Limited internal mobility
- Absence of inspiring leadership
Notably, 72% of retail employees who left their jobs during 2021-2024 exited the industry entirely. This trend underscores the importance of providing clear growth opportunities to retain talent.
One of the most overlooked opportunities is developing the people who keep teams engaged and operations running: your frontline leaders.
The Disconnect Between Desire & Development
Retail’s frontline leaders want to lead better, but most aren’t receiving the support they need.
According to Harvard Business Publishing, nearly 70% of frontline leaders express interest in developing their leadership skills. However, organizations often fail to provide structured development or coaching.
This gap between ambition and available resources contributes to dissatisfaction and turnover. Without visible pathways for advancement, employees struggle to see a future within the organization.
The Cost Of Turnover
Losing a single frontline employee costs close to $10,000. That figure accounts for recruiting, onboarding, and the lost productivity while a new hire gets up to speed. Multiplied across hundreds or thousands of roles, the cost adds up fast.
Creating Pathways That Boost Frontline Retention
Frontline employees are far more likely to stay when they can picture a future at your company. In fact, 64% of frontline workers say they would stay with their company for 6 more years if they had access to better career development and training.
That kind of long-term commitment is within reach when organizations move beyond generic training and focus on structured, visible growth opportunities that match the realities of frontline work.
To get there, focus on these 3 strategic actions:
- Build Leadership & Management Abilities: Train frontline leaders to build trust, coach effectively, handle difficult conversations, and lead through change. When your team leads grow, your teams follow.
- Enhance Data & Technology Fluency: Equip frontline leaders with data analysis and interpretation skills. When leaders are confident in using data for decision-making and reporting, they can lead more effectively and drive team performance.
- Increase Retention & Performance: Make growth visible. Clear, actionable career pathways help all frontline employees – leaders included – see a future at your company and understand how to get there.
These investments create a culture where people stay engaged, supported, and ready to perform.
Looking To Turn Frontline Leadership Into Your Retention Strategy?
Pathstream’s university-credentialed programs help retail and operations leaders build strong, motivated frontline teams through leadership development, career clarity, and practical skill-building. When employees see a path forward, they stay.
Our off-the-clock format ensures no disruption to operations, and programs are fully covered by tuition assistance. Backed by top-tier universities, Pathstream helps companies achieve stronger leadership pipelines, better retention, and higher performance. Schedule a demo today.
