In the wake of continued economic turbulence, the Australian retail sector has found itself grappling with sustained pressure from multiple fronts. From sluggish consumer spending to rising operational costs and unprecedented shifts in consumer behaviour, retailers have entered 2025 still reeling from one of the toughest years on record.
The impact has been far-reaching. According to ASIC, insolvency rates in the retail sector surged by 28% over the year to September 2024. High-profile administrations and the collapse of both household names and smaller discretionary retailers have painted a stark picture. While the KPMG Retail Health Index forecasts a return to "healthy" conditions from mid-2025, the road to recovery remains uncertain, and for many, it will be marked by significant structural change.
Retailers across Australia have been forced to confront some hard truths. With consumers tightening their belts amid a stubborn cost-of-living crisis and sticky inflation, traditional levers like discounting are proving difficult to pull, particularly when rising rent, energy prices and wages continue to erode margins.
The result has been widespread restructuring as businesses seek to optimise operations, protect cash flow, and remain competitive. This includes not only store closures and consolidations but also significant workforce reductions and operational shifts as retailers realign with omnichannel demands and digitise their service models.
For employees, this turbulence translates into job insecurity, sudden redundancy, and an urgent need to reorient their careers. For HR and executive teams managing these transitions, it raises a critical question: how can we restructure with care?
While streamlining operations may be necessary for survival, failing to support employees through this change can cause lasting damage to morale, culture and reputation. In a hyperconnected world where employer branding matters more than ever, how organisations treat their people during exits is just as important as how they recruit or retain them.
That’s where outplacement and career transition coaching providers play a critical role.
Career transition support is no longer a ‘nice-to-have’. In a landscape of large-scale restructures and redundancies, it’s a strategic imperative, particularly for retail businesses that rely heavily on people-facing roles and brand perception.
Career transition coaching providers specialise in supporting employees through change offering persoanlsied guidance that goes far beyond a CV refresh. For retailers navigating workforce change, partnering with an experienced provider can bring several key benefits:
With inflation easing in overseas markets and hopes for rate cuts locally, 2025 holds the promise of stabilisation. But retailers can’t bank on optimism alone. The sector will continue to face rapid change fuelled by consumer expectations for digital convenience, sustainability commitments and intensified competition from global and local players.
In this environment, resilience is key. Resilience not only in operations and supply chains, but in how businesses support the people at the heart of retail their employees.
Large-scale change is never easy, but it doesn’t have to come at the cost of empathy or integrity. For Australian retailers facing these decisions, partnering with an outplacement coaching provider isn’t just about managing risk. It’s about doing right by people in times of change protecting morale, and ultimately, the long-term health of the business.
We’re here to help if you’re looking for thoughtful, people-first outplacement support. Get in touch with our team to learn more.
