Luxury brands face hiring and retention challenges in retail roles

Fashion Network

4 hours ago

Hiring qualified sales staff has become increasingly difficult across the retail industry since the Covid‑19 crisis—and luxury brands are no exception. A joint study by Comité Colbert and consultancy MAD found that 60% of French luxury houses struggle to attract new talent to boutique and frontline roles, including hospitality positions. Recruitment challenges are even more acute in store management, with 93% of brands reporting significant difficulties.
'Retail talent tensions aren't new—but they're accelerating,' said Delphine Vitry, founder of MAD. 'These roles are becoming less desirable. Brands now face three core challenges: attracting candidates, developing their skills, and ultimately retaining them.' Turnover in luxury retail now averages 15%, rising to as much as 60% in markets such as Southeast Asia.
As retail roles grow more complex and demanding, luxury brands are evolving their talent strategies. Forty‑two percent have implemented formal skills frameworks at the brand or group level to better define competencies, assess potential and guide staff development. However, a significant leadership gap persists: 77% of brands say their store managers still lack the skills to lead teams effectively and drive performance.
Clienteling has become a strategic priority, as brands seek to cultivate long-term, personalized relationships through private appointments, exclusive events and tailored services. Seventy‑seven percent of luxury houses now consider it a key area for team development. 'Clienteling drives 30% of fashion luxury store revenue—and up to 50% in watchmaking,' said Chloé d'Avout, partner at MAD.
This shift has made training a key investment to boost performance and strengthen the employee value proposition (EVP), or the benefits and opportunities a brand offers its staff. With younger generations more likely to change jobs, learning and career progression have become critical retention levers.
80% of brands now conduct regular internal surveys to better align with employee expectations. Salary remains the top concern, followed by career growth and work-life balance. Flexibility is also rising in importance. While remote work generally applies only to store managers, some brands are introducing options such as the four-day workweek—now in place at Hermès stores in Paris—and personalized scheduling.
Compensation alone is no longer enough. Workplace culture and well-being now play equal roles. D'Avout suggests rethinking job titles—like client advisor or brand ambassador—enhancing collaboration between retail and headquarters teams, and celebrating talent more consistently through recognition initiatives.
Leadership stability also affects retention. 'Frequent changes in creative direction or CEOs can lead to staff departures,' she said. 'Brand desirability also plays a significant role in attracting talent.'
Finally, the study highlights a growing interest in artificial intelligence, which remains underused across the sector. While 87% of brands have yet to integrate AI into recruitment or workforce planning, 77% plan to do so within three years. 'Brands already using AI report a measurable boost—higher recruitment volume and significantly reduced turnover,' the report notes.
The stakes are high with approximately 70% of luxury brand employees working in frontline roles. Comité Colbert's general delegate Bénédicte Epinay emphasized that these positions—much like those in high-end craftsmanship—'must be positioned as careers of excellence.'
Conducted between April and June 2025, the study draws on input from 31 respondents—including CEOs and HR leaders at French luxury brands—who completed a structured questionnaire. It also incorporates insights from in-depth interviews with retail and regional directors, along with additional desk research.