London | 24 June, 2025
According to new research by Marsh McLennan (NYSE: MMC), the world’s leading professional services firm in the areas of risk, strategy and people, two-thirds (66%) of UK retail leaders believe their businesses are over-investing in managing short-term challenges associated with technology, supply chain, sustainability and workforce management, which, while important, may not clearly connect to long-term return on investment and growth.
Marsh McLennan’s 2025 UK Retail Leaders Report, Leading through disruption: Achieving retail resilience, which is derived from interviews with over 700 senior UK retail industry executives, highlights the significant challenges currently facing the UK retail sector, explores future growth opportunities, and identifies strategies to address these short-term risks.
In the wake of major cyber-attacks and supply chain disruption – including the introduction of new tariffs – 43% of retailers cite supply chain issues as being in their top three business challenges. According to the report, many retailers are still grappling with the consequences of these and other events, leading to difficult management decisions in determining whether investing in short-term issues is the most effective approach to achieving longer-term growth.
Workforce strategies and employee wellbeing are other areas of focus, as retailers contend with labour shortages, skills gaps, rising employment costs, and the integration of new regulation and legislation. The report states that 79% of CEOs, in contrast to 55% of HR directors, believe their business is effectively managing retail-wide labour shortages.
Sustainability also emerges as a key theme, as consumers place retailers under growing pressure to implement sustainable practices across their operations. While this shift in consumer values presents an opportunity for retailers to differentiate themselves in a crowded market, Marsh McLennan’s research found that just 26% of sustainability leaders think their organisations are effective or very effective in achieving net-zero goals.
The report outlines five strategies to address these multifaceted challenges, including: adopting flexible planning models; enhancing collaboration across business units; strengthening supplier partnerships; aligning workforce strategies with evolving expectations; and striking a balance between long-term goals and short-term realities.
Kelvyn Sampson, Marsh UK’s Retail, Food & Beverage and Leisure Industries Leader, said: “UK retailers today face unprecedented challenges and difficult choices, but with the right strategies in place, they can not only navigate these issues but also emerge stronger. Retail leaders that adopt agile planning models, more collaborative management practices, strong supplier partnerships and holistic people strategies – underpinned by robust long-term strategies which flex to meet short-term growth objectives – will be those whose businesses prosper up to and beyond 2030.”
