An overemphasis on short-term priorities could come at the expense of long-term resilience and growth for retailers in the UK, according to research from Marsh.

Its latest UK Retail Leaders Report found that 66% of senior retail executives believe their organisations are over-investing in managing immediate pressures linked to technology, supply chain disruption, sustainability and workforce management, which, while important, may not clearly support long-term return on investment.

The firm's report draws on responses from more than 700 retail professionals and sets out the sector’s current risk landscape, alongside practical strategies for building future resilience.

Persistent supply chain volatility is a central concern. Following major cyber attacks and the introduction of new tariffs, 43% of retail leaders ranked supply chain challenges among their top three risks. Many businesses are still navigating the fallout of these events, the report found, prompting difficult decisions about the relative value of short-term fixes versus longer-term investment.

Workforce-related risk was found to be another flashpoint. While 79% of CEOs said they believe their organisation is effectively managing labour shortages, just 55% of HR directors agreed. The divergence points to mounting operational strain from skills gaps, rising employment costs and evolving workforce regulations.

Sustainability is also a growing pressure point, as just 26% of sustainability professionals in retail organisations consider themselves effective in progressing towards net-zero goals.

The report outlines five strategies for managing these risks: adopting flexible planning models; strengthening internal collaboration; improving supplier relationships; aligning workforce strategy with changing expectations; and balancing short-term pressures against long-term goals.

Kelvyn Sampson, Marsh UK’s retail, food and 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.”

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