Retail workers make up 11 per cent of the Australian workforce. According to the Productivity Commission, the sector accounts for more than four per cent of GDP.  Workers in retail also represent some of the most vulnerable and lowest-paid people in our society and economy, including women, people who don’t speak English as a first language and young people.

In recent years, retail workers have faced massive changes in the way they work, from digitisation, to the collection and use of big data and automation, which are all reshaping the retail industry and the skills required to work in this sector. All of these changes were accelerated by the COVID-19 pandemic.

Despite this, technology is not the greatest fear that retail workers have when it comes to keeping their jobs. Our research published in 2022 shows that workers are less concerned about automation and are more concerned about being replaced by other workers who will be paid less.

In fact, 35 per cent of retail workers are concerned about being replaced by cheaper labour. In contrast, about two-thirds of retail workers say they are not concerned about automation or online shopping having a negative impact on their job or working arrangements.

However, one-quarter of retail workers are concerned they would lose work if they did not keep up with the technical skills required. They also see customer service and people skills, such as communicating well and managing conflict, as more important than technical skills for being successful in their jobs.

Three-quarters of retail workers said they felt adequately trained in the technologies needed to do their jobs. This finding was particularly strong for younger workers who have grown up with contemporary digital technologies. However, workers whose jobs are at greater risk of automation, such as non-frontline warehouse workers, were more likely to report that they would benefit from more training in how to use retail technologies.

The relatively low level of concern about the impact of automation or online shopping on retail workers’ jobs or working arrangements suggests that displacement due to automation or online shopping may have already occurred.

For example, workers in permanent and more secure forms of employment were among those least likely to be concerned about displacement. In contrast, a higher proportion of retail workers from non-English speaking backgrounds reported feeling vulnerable to displacement by technology-driven changes in the industry and were more likely to feel insecure at work. Such perceptions may reflect these workers’ more vulnerable position in the labour market, or experiences and perceptions of discrimination within the sector.

The disruption wrought by COVID-19 on the retail sector, and the broader Australian economy, is not going to go away anytime soon. One of the biggest changes that is likely to remain is the increase in working from home.

The vast majority of retail and fast-food workers cannot do this.

There are those in the frontline with customer-facing jobs, and others working in logistics and warehouses, organising delivery of food and consumable products. Only a very small proportion work in an office with predominantly desk work that can be undertaken at home.

Our findings demonstrate the challenges Australian retail workers face in a post-COVID-19 world – as well as during any future pandemic. As some of Australia’s lowest-paid and most vulnerable workers, it’s vital we understand how we can better protect retail workers’ job security. Understanding these trends and key concerns, and how we can better address them, will go a long way in achieving this goal.