2026 Retail & Consumer Goods sector challenges: Workforce management’s role in achieving success

The performance of the UK retail sector in the second half of 2025 was stronger than expected despite persistent inflation, a challenging job market, and consumer concerns about the UK economy. 

Despite this growth, many retailers and consumer goods companies report declining profit margins, due to rising operational costs, the recent tariff implementations, and shifting consumer behaviours.  Recent research shows that 81% of retailers plan to increase prices to offset some challenges with many looking for ways to cut costs. 

So, in uncertain times, what are the top 6 challenges consumer goods and retail organisations face in 2026? And how can workforce management excellence drive success in 2026? 

70% of people in the UK consciously use AI in their daily lives, whether that’s at work, to simplify or optimise their lives, or just recreational use.  

38% of UK shoppers overall report using AI tools when shopping. This rises to 70% among 25-34-year-olds and 59% of Millennials. Even older customers that might be deemed sceptics are using them, with 16% of over-65s giving it a try. It’s unsurprising that consumer goods and retail organisations must prioritise AI-driven shopping experiences. 

This is fueling a growing demand for tech-savvy talent and generating new roles in AI, machine learning, and digital product management that consumer goods and retail need to fill.  

With 2025 research showing that 68% of CIOs and CTOs have already mapped out their tech workforce needs for 2026 and beyond, consumer goods and retail organisations that haven’t already done so need to act fast and act now. 

Online and omnichannel sales are now dominant. In fact, for Christmas 2025 a third of Britons (33%) stated they do their Christmas shopping mostly or entirely online, with a further third (32%) saying their seasonal shopping is spread equally between in person and online. While in person shopping still holds value, a class-leading online offering future proofs and widens reach of business.  

This brings new challenges, such as the need for an outstanding online consumer experience to avoid losing shoppers - through delays or frustrations. It also requires top levels of data security, where high profile hacks have dented confidence in and reputations of multiple big-name organisations in 2025. 

Organisations looking to not only survive but to thrive are now seeking out skilled talent in UX/UI design, logistics, cloud engineering, and cybersecurity to help them fulfill their omnichannel and online potential and prepare for the digital dominance to continue.  

Tariffs implemented from overseas, inflation uncertainties, and ongoing global disruptions are driving organisations to rethink their supply chains by regionalising sourcing strategies and leveraging predictive analytics.  

This shift helps organisations respond faster to market volatility, minimise risk, and optimise costs. An emphasis on local suppliers and data-driven decision-making is becoming essential for ensuring resilience and competitiveness in the current climate. 

These changes are increasing the need for supply chain and financial planning expertise, and where many other sectors are doing the same, retail and consumer goods organisations will be competing for this talent. 

Retail and consumer goods organisations face a dichotomy where consumers expect both optimal value and constant innovation.  

87% of UK consumers changed their shopping habits in the past year as a result of the current economic climate with more than two-thirds (67%) stating that lower prices or better discounts are the most influential factors when choosing a shopping experience. 

However, as many as two-thirds of UK consumers prefer to shop in physical stores rather than online, especially in areas such as fashion and beauty, showing that a physical store is still seen as a place of enjoyment. 

Meeting these dual demands requires advanced data-driven pricing strategies and precise category management to ensure competitiveness and profitability. At the same time, companies must develop new products and enhance store experiences to attract and retain customers.  

As retailers strive to deliver destination store services and unique offerings, leveraging talent with skills in analytics and innovative thinking becomes essential to not only satisfy price-sensitive shoppers but also differentiate in an increasingly crowded market. 

Pressure for ethical sourcing and carbon reduction is rising across the retail and consumer goods sectors, as companies respond to increasing expectations from both regulators and environmentally conscious shoppers.  

This trend is driving a surge in demand for specialists in sustainability and compliance, who can help organisations meet stringent consumer standards by developing sustainable supply chains and achieve demonstratable progress toward reducing their environmental footprint. 

With more environmental legislation planned, organisations should ensure compliance and reduce risk by nurturing ‘green talent’. 

New wage laws and tighter workforce regulations are set to increase labour costs and complicate workforce management for retail and consumer goods companies operating in the UK. The government have also confirmed that National Living Wage will increase by £0.50, to a new rate of £12.71, significantly impacting front-line staff and workforce costs.  

To remain competitive and compliant in 2026, organisations must prioritise adaptability, invest in compliance expertise, and implement flexible workforce strategies to successfully navigate this evolving regulatory environment and mitigate associated risks. 

Organisations will need to attract talent with not only deep expertise in employment law compliance, but also workforce strategy to effectively navigate and address the complexities of upcoming legislative changes. 

A leading MSP and workforce solutions partner like Guidant Global can make a significant difference - having supported hundreds of organisations over more than 20 years, we have a proven track record in guiding businesses through evolving legislation and ensuring ongoing compliance and adaptability. 

Addressing challenges and capitalising on opportunities in 2026 and beyond 

By working closely with a workforce management specialist who truly understand fast-paced industries, Consumer Good and Retail organisations can confidently tackle new challenges and make the most of emerging opportunities. 

At Guidant Global we support our Consumer Goods and retail clients with end-to-end workforce management with a particular focus on:  

Our comprehensive approach to risk assessment, compliance, and strategic workforce planning ensures organisations remain agile, compliant, and competitive - empowering them to capitalise on emerging opportunities while effectively addressing challenges across the sector. 

Ready to strengthen your workforce strategy and drive business growth in 2026?  

Contact me to discuss how Guidant Global can support your retail and consumer goods organisation with tailored solutions and expert guidance.