The retail industry moves fast. High staff turnover, seasonal peaks, and changing candidate expectations put constant pressure on recruitment. For many retail companies, this means higher costs, understaffed stores, and too much time spent rehiring instead of serving customers.
Based on our 2025 Nordic Recruitment Report and close work with leading retail companies, we’ve identified the three challenges retail leaders highlight most:
1. High turnover and short-term contracts
Retail has one of the highest turnover rates of any sector. Many employees see roles as temporary, and constant staff changes make it hard to maintain consistency and service quality.
For our retail customers, constant rehiring is a top pain point. It eats up time and budget, disrupts daily operations, and frustrates managers who want to focus on sales and customers.
The result: higher costs, weaker service, and teams that never feel fully staffed or settled.
What can companies do?
- Strengthen onboarding and preboarding to create early engagement
- Create clear career paths so entry-level employees see retail as a place to grow
- Use structured exit interviews to understand turnover patterns
- Highlight flexibility, growth, and training in job ads to attract more long-term candidates
Retention starts earlier than most realize, even before the first day. Small improvements in preboarding or clear growth paths can significantly boost loyalty and performance.
Our 2025 Nordic HR Report makes it clear: 92% of candidates see development opportunities as crucial. In retail, this is about reducing churn, protecting margins, and keeping stores staffed with motivated people.
Nadja Bengtson, Product Line Manager at Talentech
2. Volume hiring under time pressure
Retail recruitment often happens at scale, and fast. Seasonal campaigns, store openings, and staff shortages can require dozens or even hundreds of hires in a short time. Without a solid system in place, this can quickly overwhelm local hiring teams and lead to rushed or inconsistent candidate experiences.
Our data from the 2025 Nordic Recruitment Report shows that a majority of candidates is less likely to apply if the application process is too long or unclear – something that becomes even more critical when you’re trying to fill high volumes of roles quickly.
What can help?
- Use automation to screen, rank, and move candidates forward faster
- Predefine job templates and interview flows for common roles
- Enable store or regional managers to collaborate within a single platform
- Create talent pools for future campaigns and rehires
3. Standing out in a competitive frontline market
Retail competes not only with other retail companies, but also with hospitality, logistics, and customer service for the same frontline talent. When salary and tasks are similar, candidates often choose based on brand perception, values, and flexibility.
And that’s where many retail companies fall short. Candidates are increasingly looking for inclusive workplaces, growth opportunities, and a sense of purpose rather than just a paycheck. But too often, job ads and career pages still focus only on shifts and requirements.
What can companies do?
- Highlight what makes your workplace unique, such as team culture, growth, flexibility
- Feature real employee stories and testimonials, especially from frontline staff
- Ensure mobile-friendly, accessible application processes
- Align recruitment messaging with your brand values and customer experience
Retail brands obsess over how they look to customers – yet many neglect how they look to talent. In today’s market, your employer brand isn’t hidden in the background. It’s on full display, shaping who applies, who joins, and who stays. Ignore it, and your competitors will thank you.
Linus Andersson, Director of Innovation at Talentech
What's next?
Retail recruitment will always move fast, but it doesn’t have to be reactive.
With the right tools, hiring can become a strength that drives loyalty, protects margins, and keeps stores staffed with motivated people.
At Talentech, we partner with leading retail brands across the Nordics to:
- Streamline high-volume recruitment
- Offer a smoother candidate journey
- Empower local hiring teams to succeed at scale
Explore how our recruitment solutions support retail teams HERE.
