More than half of workers in luxury retail positions are looking to quit their jobs, according to a survey by consulting firm CXG.
It comes as the personal luxury market in the GCC hit a record $12.5bn last year and employers and brands are encouraged to attract and retain staff to avoid a luxury exit for talent.
In a report on the evolving role of client advisors in luxury retail, CXG addressed the challenges faced by the luxury retail sector regarding talent acquisition, development, and retention in the GCC.
Luxury retail jobs
The report looked at strategies for recruitment, onboarding, training, and retention of staff in luxury retail sector.
The report found 51 per cent of respondents indicated plans to leave their positions, highlighting a significant talent retention issue within the industry. This marks a notable increase from 30 per cent just two years prior.
Christophe Caïs, Founder and CEO of CXG, said: “Our research shows that the luxury retail sector is at a critical juncture. The rise of digital tools and omnichannel strategies has transformed the traditional luxury retail model, requiring client advisors to blend high-touch personal service with digital proficiency.”
The responsibilities of luxury client advisors have expanded dramatically. Modern advisors are now expected to engage in digital interactions and relationship management while mastering storytelling and customer relationship management (CRM) skills.
This evolution necessitates a blend of emotional intelligence, adaptability, and technical prowess to enhance customer experiences.
In the luxury sector, 78 per cent of customers report that a single negative interaction with an advisor can lead to abandoned purchases. Conversely, advisors who deliver exceptional experiences can boost purchase intent by five times — 86 per cent compared to just 17 per cent for those who do not.
Only 39 per cent of employees reported having a good work-life balance. Younger generations increasingly seek clear career paths, skill development opportunities, flexible scheduling, and purpose-driven work that extends beyond traditional compensation.
Accordingly, luxury brands are now required to source talents from diverse industries while leveraging social media and AI for recruitment. This shift aims to increase the talent pool brands can recruit from.
The study’s findings come at a critical time for the GCC luxury sector, is experiencing unprecedented growth. According to a report by the Chalhoub Group, the personal luxury market in the GCC reached a record $12.5bn by the end of 2023, growing at double the speed of the global industry.
This significant growth underscores the region’s robust demand for high-end fashion, luxury watches and jewellery, and prestige beauty, solidifying the GCC’s position as a key player in the global luxury landscape.
Caïs said: “The GCC luxury market’s impressive growth highlights the critical need for brands to invest in their employee experience. As the region continues to outpace global growth, luxury brands must refine their Employer Value Proposition (EVP) strategies to attract and retain top talent capable of delivering exceptional luxury experiences.
“Brands that prioritise talent development and align with evolving employee values will be well-positioned to sustain competitive advantage and deliver exceptional luxury experiences in the future.”
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