What: Foundational and soft skills are now critical for long-term retail workforce adaptability and business success.

Why it is important: The focus on foundational skills aligns with evidence that successful retailers combine technological innovation with human capability development.

As technology rapidly transforms the workplace, foundational skills such as collaboration, adaptability, and communication have become essential for both individuals and organisations in the retail sector. Recent research analysing millions of job transitions demonstrates that employees with strong basic skills not only earn higher wages and advance more quickly but also adapt more effectively to industry changes. These foundational abilities, including social and critical thinking skills, are increasingly valued by employers who recognise their role in long-term performance and resilience. In contrast, specialised technical skills are subject to rapid obsolescence, making adaptability and problem-solving crucial for navigating ongoing disruption. Companies that prioritise foundational skills in hiring, development, and leadership practices are better positioned to build agile, future-ready teams. Investing in early-career development and embedding soft skills into management culture ensures that retail organisations can respond to evolving market demands, maintain operational continuity, and foster innovation. Ultimately, the ability to blend human strengths with technological advancements is now a defining factor for sustainable success in retail.

IADS Notes: Recent industry analysis confirms that foundational skills are central to retail transformation. In July 2025, only 36% of retail workers felt prepared for AI-driven change, highlighting the need for systematic upskilling. June 2025 reports emphasise early-career development and skills-based hiring as key to talent retention, while luxury brands are adopting AI-enabled management to address acute recruitment challenges. Leadership development now focuses on daily reinforcement of collaborative behaviours, and leading retailers are achieving productivity gains by integrating AI with a strong emphasis on human capabilities, as seen in March and April 2025.

Soft skills matter now more than ever, according to new research