Upskilling the retail workforce

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This article was originally published by BDO USA.

How technology is turning retail workers into product experts and experience specialists

Imagine a homeware store in 2043: An employee named Jess starts her shift by reviewing the company’s latest product line on a virtual reality (VR) headset. Through gamified VR training, Jess had been working to improve her product knowledge retention and accelerate her learning. Jess’s customer Alex has booked a VR interior styling appointment for that afternoon and sent images of his living room last night. Jess loads the images into the VR system and leverages the store’s Artificial Intelligence (AI) to provide suggestions and speed up her decision making in determining what recommendations to make to Alex.

Additionally, Jess used her data analytics training to understand what Alex’s buying preferences are based on his customer profile, as well as to predict the ultimate sales outcome for each item. When Alex arrives, Jess and Alex use the VR headsets to see how the latest vases, chairs, and throw pillows could look in his living room. While Alex decided to come to the store to touch and feel the products, Jess also provides virtual consultations to customers who are using their VR headsets from the comfort of their own home. With the proper training in VR technology, AI, data analytics and on the new home décor products, Jess feels confident she can help Alex inject more personality into his home.

The retail employee’s role has quickly evolved beyond simply staffing the cash register or stocking inventory. Retailers will need the help of technology, AI, and data analytics to future-proof their business and upskill staff, turning them into both product experts and customer experience specialists.
So, where do you begin in building these soon-to-be critical employee skill sets? Using product knowledge as an example, a first step could include fun tools, including:

  1. Digital “gamification” platforms can make product education exciting and competitive. For example, employees can take a quiz on a retailer’s new product line and score points to move higher on a leaderboard.
  2. Augmented reality (AR) and virtual reality (VR) to train your employees. With its wow factor, VR and AR can help make product training more exciting for your employees.

As employee training becomes increasingly digital, incorporating AR and VR into product demonstrations could boost staff engagement and help reduce turnover. As technology transforms retail employment, knowledgeable staff with emerging technology and data analytics skills will be the X-factor that deepens employee-customer relationships.

VR, AI and bite-sized learning don’t replace the human touch, they unlock it. Equip store teams with the tools to learn quickly and advise confidently, and you’ll retain talent longer and keep customers happier.

Joanna GeorgalisPartner, BDO Australia

Engagement means retention

Customers are often not receptive to pushy sales tactics or dishonest recommendations; that’s where authentic product knowledge and other advanced skills come in. Knowledgeable employees are the foundation for enhancing customer experience and growing sales. When a customer comes in for a silverware set, an employee can ask some questions about what they’re looking for in their ideal set, and use data analytics to reveal opportunities to point them towards a set of plates or cloth napkins that they’ll also love.

Many retailers wish all their employees could be like their best employees. With AI, data analytics, and digital training tools, “cloning the best employee” is not only possible but also easy. For example, AI could soon talk with employees in real time to fast-track their learning and create a more rewarding workplace experience. With data analytics, retailers can identify trends in employee engagement and learning, helping them focus only on the training that produces the best results.

As a great example of a digital training tool success, one large technology retailer uses an intra-company social network to encourage employees to collaborate. If one person has a successful way to increase sales of core products, they post specific tips for their colleagues.

This could easily be replicated with success at most retailers in sharing winning sales strategies. When employees feel empowered, they often feel motivated to deliver a better customer experience. Having the knowledge and confidence to ask the right questions can lead to stronger recommendations, which could in turn lead to reduced returns.

Retailers can greatly benefit from employees who are ready to embrace new technologies and improve their customer service skills. However, identifying candidates with the right skills for the mission is an ongoing challenge. Hires should ideally be both a technical and cultural fit, and that can be hard to find. Because of this, many retailers are focused on strengthening their talent acquisition programs to future-proof their business.

The hardest skill to teach may be retail’s most important

Retail faces a two-pronged labour challenge: Attracting and finding the right employees. The labour market remains tight, and retailers are increasingly competing with remote and app-based gig opportunities for employees. Luckily, the strategies retailers can use to attract employees are also ideal for finding people who will stay and thrive. For example, AI could be used to improve targeting on the talent pool, and to rapidly train new workers. Meanwhile, data analytics could be used to better predict demand for talent and allow retailers to make good, timely hiring decisions.

Many of today’s retail candidates are looking for employers that understand the value of positive experiences with fellow employees and customers alike. Learning and growth opportunities help employees improve their technical skills and find fulfilment by forming connections with customers and colleagues. That’s why it’s often important that retailers consider the potential for upskilling in talent acquisition practices.

However, a committed employee isn’t just someone who shows up. Retailers should strive to hire candidates with the necessary soft skills that today’s retail environment demands.

Communication, professionalism, and a team-oriented mentality are difficult traits to teach, but they are foundational for learning and building strong customer relationships.

Let’s revisit Jess and her customer Alex at the homewares store. In our home store example, Jess would need dedication and patience to guide Alex through a comparison of different couch upholsteries, along with the technical skills to use VR to demonstrate how the chosen furniture would complement the walls of his living room.

Finding the right retail candidates in the future will require an even more delicate balance than what is seen today – meeting shifting employee expectations while also identifying those candidates whose skillsets match modern, tech-enabled store experiences. This retail future isn’t far off, but getting there alone can be difficult.

The US retail market is more fluid, with higher rates of staff turnover and faster career progression, while Australia is more regulated and traditionally casualised. The opportunity is the same: make the ‘first rung’ and ‘next rung’ unmistakable, reward skills gained (not just time served) and offer more predictable hours as capability grows. Do that, and you turn seasonal workers into long-term ambassadors.

Joanna GeorgalisPartner, BDO Australia

Australian perspective: What this means for local retailers?

Australia’s retail sector is already feeling the pressure of a tight labour market, rising customer expectations, and rapid digital change. As frontline roles evolve, retailers must rethink how they attract, train, and retain talent. This means going beyond traditional onboarding and embracing immersive learning tools like VR, gamified training, and AI-powered coaching.

Forward-thinking Australian brands are beginning to embed these technologies into their workforce strategies, not just to improve product knowledge, but to build confidence, foster loyalty, and create more meaningful customer interactions. For retailers looking to future-proof their operations, investing in both technical and human skills will be key to staying competitive in a digitally enabled retail landscape.

Ready to start building the workforce of the future for your business?

BDO’s retail team is readily available to provide deep industry expertise on employee upskilling strategies and actionable insights to enhance the customer experience.

Key takeaways

Technology is transforming retail roles
  • Retail employees are evolving into product experts and customer experience specialists through tools like VR, immersive technologies, AI, and data analytics.
Digital training boosts engagement and retention
  • Gamified learning and engaging training platforms help empower employees with strong product knowledge and tech skills, boosting engagement.
Upskilling and talent strategy are critical for future-proofing
  • Retailers must invest in both technical and soft skills to attract and retain talent in a competitive labour market, while leveraging AI and data analytics to streamline hiring and personalise training.

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Authors

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Salim Biskri
National Leader, Retail
Partner, Audit and Assurance