Retail expansion highlights urgent need for skills development

Wholesale and retail trade added 92 000 jobs in the year to the first quarter of 2026, accounting for nearly a quarter of employed youth. With youth unemployment hovering around 46%, retail remains one of the country’s most accessible pathways into work.

Major retailers are investing heavily in growth. Mr Price plans to open about 180 new stores in FY2027, alongside supply chain and technology upgrades. Pepkor is set to add more than 200 stores in FY2026, while expanding into banking, insurance and digital services.

Shifting nature of work

Yurissa Sawers, the programme manager for skills development at the Mr Price Foundation, says the sector is evolving beyond traditional store roles. Employees are increasingly expected to operate at the intersection of physical and digital environments — navigating advanced systems, managing logistics and supporting financial services.

The pandemic accelerated the shift, embedding online shopping, delivery and omnichannel models into everyday retail. Stores now function as sales floors, collection points, returns hubs and service centres, requiring frontline staff to handle complex customer journeys that often begin online.

Skills gap emerging

The Wholesale and Retail Seta has identified digital fluency, e‑commerce management, data analytics and agile supply‑chain coordination as critical capabilities. However, training systems are lagging behind industry needs.

Traditional youth training has focused on punctuality, presentation, communication and customer service. While essential, Sawers says programmes must now incorporate digital confidence, commercial awareness and data literacy.

“Equipping youth with a blend of retail fundamentals, digital readiness and practical experience will not only improve employability but help build the workforce that a modern, increasingly connected retail sector requires,” Sawers said.

Mr Price Foundation’s approach

Through its JumpStart programme, the Mr Price Foundation has achieved a 70% placement rate and 61% rehiring rate — the latter seen as a strong indicator of employer satisfaction.

Sawers emphasised several priorities for training:

  • Define capabilities before designing programmes.
  • Provide practical exposure to systems and workplace pace.
  • Align training with investment priorities such as fulfilment, automation and financial services.
  • Shorten review cycles to keep pace with evolving customer expectations.
  • Measure outcomes beyond placement, including retention, service performance and progression.
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  • Wholesale and retail trade added 92,000 jobs in the year to the first quarter of 2026, representing nearly a quarter of employed youth.
  • Mr Price plans to open about 180 new stores in FY2027, along with supply chain and technology upgrades, while Pepkor aims to add over 200 stores in FY2026 and expand into banking, insurance, and digital services.
  • The retail sector now requires employees to work across physical and digital environments, managing advanced systems, logistics, and financial services, accelerated by pandemic-driven shifts.
  • The Wholesale and Retail Seta identified digital fluency, e-commerce management, data analytics, and agile supply-chain coordination as critical skills, but training systems currently lag behind these needs.
  • The Mr Price Foundation’s JumpStart programme has achieved a 70% placement rate and 61% rehiring rate by focusing on practical exposure and aligning training with industry investment priorities.

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