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Retail’s tech transformation: Upskilling frontline employees for next-gen careers

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Key Takeaway
As the retail sector becomes more tech-intensive, investing in upskilling for frontline employees could be a practical workforce strategy to meet evolving talent needs.

 

The retail sector is one of the largest employers in the U.S., but turnover in frontline roles like cashiers, sales associates, and stockers is extremely high—often exceeding 60%. At the same time, the sector is undergoing rapid technological transformation as automation, robotics, data systems, and digital platforms reshape how stores and supply chains operate. This shift is creating demand for a new category of “tech-enabled” retail roles, both in computer technology (such as IT support, software, and cybersecurity) and in physical technology or mechatronics (such as automation maintenance, warehouse robotics, and logistics tech).  

Although the Burning Glass Institute report is U.S.-focused, similar trends are emerging in Canada’s retail sector, where frontline workers will increasingly face both disruption and opportunities to advance into technology-rich careers. 

Despite the clear opportunities, several barriers could hold these transitions back: 

  • At the individual level 

Many frontline workers do not see themselves as “tech people.” They may also face time, cost, and child-care constraints that prevent them from retraining. 

  • At the company level  

Employers frequently overemphasize formal credentials over skills and lack a strong business case for sustaining programs.  

  • At the system level 

Training providers’ offerings may be misaligned with employers’ needs. In addition, tech roles are usually performed in locations that are geographically separate from retail worksites, creating potential accessibility challenges.  

More than 110,000 frontline workers in the U.S. have already made the jump into tech-enabled jobs in recent years, often without structured support—and Canadian workers and employers will likely face a similar situation as automation expands north of the border. 

In terms of starting strategies for retailers, the report recommends:  

  • piloting place-based career pathways in specific sites or regions  
  • leveraging internal assets, such as workforce data, site managers, and cross-functional human resources and/or operations partnerships 
  • building clear business cases by tracking retention rates, turnover savings, and productivity gains 

 Large retailers are positioned to lead the change because their scale and capacity will allow them to integrate workforce development into their core operations rather than simply relying on isolated charitable initiatives.  

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