The retail industry is undergoing a transformation, reshaping the roles of cashiers, forecourt attendants, and other frontline workers. Advancements in technology and evolving consumer preferences are driving efficiency but also raising concerns about job security. As automation and digital solutions gain traction, businesses must rethink traditional employment models. This article explores the key trends shaping the future of retail jobs and what they mean for workers in South Africa.
Retail Job Market: Growth or Decline?
The fuel retail sector is currently facing two major shifts that could impact employment: potential petrol price deregulation and the rise of electric vehicles (EVs). While EV adoption in South Africa remains slow, industry discussions have already highlighted the risks of job losses for petrol attendants in the future. However, recent reports indicate that petrol station jobs remain stable for now.
In contrast, other retail segments are experiencing significant employment challenges. The first quarter of 2023 saw 36,000 job losses in the trade sector, followed by 32,000 in business services. Meanwhile, retail job postings declined by nearly 49% between October 2023 and January 2024. While there was a brief surge in job postings at the start of the year, the sector continues to struggle to create sustainable opportunities.
These trends raise an important question: is the retail industry generating new jobs, or is it simply maintaining existing roles for higher-skilled workers? Many frontline positions that require minimal formal education are being replaced or restructured, making entry-level retail jobs increasingly scarce.
The Impact of Self-Service Technology on Retail Jobs
One of the biggest disruptions to traditional retail roles is the adoption of self-service checkout systems and automated kiosks. Retailers like Shoprite, McDonald’s, and KFC have already implemented these systems to enhance efficiency and improve customer experience.
- Shoprite Group introduced South Africa’s first self-service clothing checkout through its UNIQ brand, launching in major cities like Cape Town, Johannesburg, and Durban.
- McDonald’s self-service kiosks have driven a 6% increase in sales in markets where they have been implemented.
- KFC’s digital kiosks have redefined customer interaction, improving order accuracy and reducing wait times.
According to the National Retail Federation (NRF), 97% of shoppers will abandon a purchase if faced with long queues, and 75% will leave if more than seven people are in line ahead of them. Self-service checkouts reduce congestion, enhance convenience, and improve accuracy, catering to modern customers who value speed and efficiency.
However, while self-checkout solutions don’t completely eliminate jobs, they do shift employment needs. Instead of traditional cashiers, businesses now require customer service assistants to guide first-time users, particularly older shoppers unfamiliar with digital interfaces.
The Rise of E-Commerce and Its Effect on Traditional Retail Employment
E-commerce in South Africa is rapidly reshaping the retail job market, with platforms like Takealot, Checkers Sixty60, and Woolworths Dash driving a shift away from in-store shopping. While online retail creates demand for logistics, warehousing, and last-mile delivery jobs, it reduces the need for traditional in-store roles such as cashiers and sales assistants. In 2020 alone, South Africa’s e-commerce market grew by 66%, reaching R30 billion, and is projected to surpass R100 billion by 2025 (World Wide Worx). As major retailers continue investing in digital storefronts, physical stores are increasingly adopting hybrid models that prioritise fulfilment and collection services over traditional retail staffing.
Digital Payments and the Decline of Cashiers
The rise of mobile payments, tap-and-go transactions, and QR codes is significantly reducing the reliance on cashiers in South African retail. With 74% of consumers now using digital payment methods and 80% of merchants accepting contactless transactions (FinMark Trust), businesses are investing in self-checkout kiosks and automated payment systems. Supermarkets and fast-food chains have already introduced digital-only counters, reducing the number of cashier roles. While these innovations improve efficiency and reduce fraud risks, they also shift employment opportunities towards customer service and fraud prevention rather than traditional point-of-sale operations.
The Informal Retail Sector: A Growing Employment Space
Despite the decline of formal retail jobs, South Africa’s informal sector continues to expand, providing critical employment opportunities. Spaza shops, street vendors, and township-based businesses employ over 5 million people, contributing 6% to the country’s GDP (Stats SA). Digital financial services such as Yoco and Kazang are helping informal retailers modernise, enabling cashless transactions and business growth. As formal retail jobs become more skills-based and technology-driven, the informal economy remains an accessible alternative, particularly for those without formal qualifications.
The Effect of Load Shedding on Retail Jobs
Frequent power outages are placing strain on South Africa’s retail industry, leading to job losses and reduced working hours. According to SBI South Africa, 60% of small businesses reported financial losses due to load shedding in 2023, forcing many retailers to cut shifts or downsize operations. Large retailers are investing in solar power and battery backups to maintain operations, but smaller businesses struggle to afford these solutions. As energy instability continues, retailers are forced to balance rising costs with workforce reductions, creating further uncertainty for employment in the sector.
What’s Next for Retail Workers?
Retail workers are at a turning point, where adaptability and upskilling are critical. Automation is not eliminating jobs outright, but it is redefining them. The focus is shifting from transaction-based roles to customer service, technology support, and operational oversight.
To remain competitive, employers must invest in training programmes that equip workers with digital and interpersonal skills. Employees must also embrace change by developing expertise in customer relations, technology support, and store operations.
The future of retail employment won’t be about replacing people—it will be about redefining their roles. Businesses that strike a balance between automation and human engagement will create sustainable employment models that cater to evolving consumer expectations.
