Working and staying in retail: how working conditions shape industry loyalty in the war for talent

Purpose The retail industry faces above-average turnover, partly due to its working conditions and poor reputation as an employer. However, skilled and loyal employees are crucial, as retail competes for talent and requires evolving skills to meet store-based retail challenges amid online and low-cost competitors. While research examines employee retention and loyalty at the organisational level, industry-level effects remain unexplored. This paper investigates how working conditions affect employees’ loyalty to the whole retail industry. Design/methodology/approach The study draws on data from a web-based survey of 1,006 frontline retail employees aged 16+ and employs variance-based SEM to test the proposed research model. Findings The findings reveal that salary and growth opportunities have the strongest impact on industry loyalty. However, customer interactions also play a key role, followed by tasks, team and work-life balance. Results highlight clear distinctions between loyalty to the employer and to the industry, as well as the influence of personal- and work-related moderators. Practical implications As this study explores how retail working conditions influence industry loyalty, it offers insights into employee priorities in making a long-term commitment. These insights support the implementation of tailored strategies that address employees’ needs, helping retail compete with other industries while fostering a stable, dedicated workforce. Originality/value This research is among the first to investigate employee loyalty from an industry-wide perspective in retail, offering insights that go beyond individual employers and guiding strategies that could strengthen retention and loyalty across the sector.