Steve Worthy and I look back at retail in 2025 and look ahead to 2026.
It’s always an adventure when retail leaders like Steve Worthy and I get together. Before we even officially went live for our latest chat, we were already stumbling through the usual tech chaos. Steve’s video looked grainy; he joked that he might get us “canceled” for a slip of the tongue, and we were reminiscing about the days when my old laptop fan was so loud it sounded like a jet engine taking off in the middle of our calls.
But once we got settled, it was hard to get us to stop. We were taking the state of retail. We’re looking back at the wild year of 2025 and staring down 2026. If you’ve felt like the industry is a bit “off” lately, trust me—you aren’t the only one. If we want to fix it, we have to talk about retail leadership training and why the industry seems to have lost its way a bit.
The Year of the “Micro-Explosion”
I started our chat by looking at my own data. When I did my year-in-review for my Substack, The Voice of the Frontline, the results were clear: consumers are hitting a breaking point. Two out of my top five most-read articles were about boycotts. We are seeing these “micro-explosions” of anger where people feel disconnected from the brands they used to love.
Whether it’s a holiday ad at Sephora or systemic issues at Target, the root cause is often a lack of people-first leadership. When a company loses its way, the first place it shows is on the frontline. If we want to reduce retail turnover, we have to acknowledge that customers react to the energy of the employees. When leadership isn’t empowering frontline retail workers, that frustration bleeds into the customer experience. It leads to the very boycotts we’re seeing today.
The “Suburban” Retail Identity Crisis
Steve hit me with a point that really stuck. He thinks the retail industry got “exposed” this year. He used this great analogy about growing up. He talked about moving from the city to the suburbs and having to code-switch to fit in. But when he’d go back home, people would look at him and say, “I don’t think you know us anymore. You became brand new.”
That’s exactly what happened to a lot of big retailers. They spent years trying to be “brand new” for the suburbs—trying to be everything to everyone—and in the process, they lost their edge. They stopped focusing on frontline employee development and started focusing on optics. Now, they’re trying to come back and act “cool” again, but the consumers are skeptical.
As Steve put it: “I don’t believe what you say because I see what you do.” You can’t just flip a switch and be authentic again. True, real-world leadership strategies require staying grounded in who your customers and employees actually are.
Beyond the Tech Band-Aids
Chaos has become a cover for weak leadership. We’ve seen so much mediocre decision-making at the executive level. A lot of leaders are hiding behind “uncertainty” to mask the fact that they don’t have a plan for building strong retail teams.
Instead of investing in how to train retail leaders, many companies are throwing technology at the problem. They’ll stand on a stage and talk about retail operations efficiency and AI, while their actual stores are struggling. Tech is great, but it’s a tool, not a cure. If you aren’t using the right tools for developing retail managers, no amount of software will save your culture. We need to invest in retail frontline talent, not just new gadgets.
The “10-4” Rule vs. Real Humanity
Speaking of non-existent service, we have to talk about the “10-4” rule. Target recently pushed a policy where employees are supposed to wave if someone is within 10 feet and greet them if they’re within 4 feet. Honestly, it’s a little embarrassing that this had to be rolled out as a new policy.
When you have to mandate common courtesy, your best practices for retail onboarding have officially failed. This isn’t retail team motivation. This is a script that feels hollow. We talked about our recent bad experiences with Uber drivers who won’t help with bags or people in grocery stores who won’t even say “excuse me.”
If we want to know how to inspire retail employees, we have to stop giving them robotic rules and start giving them real training—practical leadership for store managers. Good service comes from a place of feeling valued. If you want your team to greet customers with a smile, you have to start by greeting your team with respect and teaching the right communication tips for retail leaders that actually foster connection.
Boosting Retention in Retail for 2026
So, what are some retail management tips that actually work for the coming year? Steve and I both agree that we have to get back to the basics of improving retail team performance.
- Shift the Leadership Style: Move away from “command and control.” The most effective leadership styles in retail right now are those that prioritize empathy and transparency.
- Focus on Retention: Instead of constantly hiring, focus on boosting retention in retail by creating a clear path for growth. People stay where they feel they are being developed.
- Real Training: We need to move past the “compliance” videos. Effective retail leadership training should be about conflict resolution, emotional intelligence, and how to lead a diverse team on a busy Saturday afternoon.
There is a glimmer of hope. Starbucks, for example, realized it leaned too hard into automation and is now pivoting back. They’re adding assistant managers back into stores. They’re realizing that if you take the human out of the retail experience, you’re left with an uninspired Americano that becomes a letdown instead of a treat.
Humans Still Rule
If there’s one takeaway from my chat with Steve, it’s this: The “smoke and mirrors” era of retail is over. Consumers can see through the tech distractions and the weak leadership. In 2026, the winners are going to be the brands that stop trying to “code-switch” and start being real again.
Whether it’s a factory in China selling direct or a big-box store finally remembering how to say “hello,” the focus has to return to the people. We’ve come a long way from floppy disks and four-hour downloads, but some things—like the need for a human connection—never change.
Join us for our next LIVE on Substack. We call it Retail Unfiltered. Now you know why.
What’s your biggest retail pet peeve lately? Is it the lack of service or the constant price hikes? I’d love to hear your thoughts in the comments!