Exclusive CXG Study: 51% of Retail Employees in the Luxury Sector Consider Leaving Their Jobs
On Thursday, October 10, a major conference hosted by CXG took place at the prestigious Peninsula hotel, bringing together executives from leading luxury brands. CXG, the global leader in customer experience, has been supporting over 220 renowned Maisons worldwide since 2006.
This consultancy and solutions firm specializes in innovative strategies to enhance customer experience and drive the performance of premium and luxury brands. With operations in 85 countries, 12 offices, and a team of over 260 experts, CXG has established itself as a key global player under the leadership of Christophe Caïs.
The objective of this conference was to present an in-depth study addressing major challenges in the luxury retail sector, particularly in talent acquisition, development, and retention.
The report, titled “The Advisor Effect: Driving Retail Success by Re-imagining the Role of the Sales Advisor,” is based on 12,000 surveys conducted among retail employees from 12 luxury brands between 2022 and 2024, along with 27 in-depth interviews with senior professionals from various luxury sectors, including fashion, jewelry, and beauty, across Europe, the United States, and China. The study also draws on over 100,000 annual customer experience evaluations with more than 200 luxury brands.
From the outset, the conference highlighted a startling statistic: 78% of customers state that a single negative interaction with a sales advisor can lead them to abandon a purchase. In light of this reality, what new roles and skills are shaping the luxury sales advisor profession in 2024?
A Talent Retention Crisis
The report underscores a concerning crisis in talent retention within luxury retail.
A notable 51% of respondents are considering leaving their roles, up from just 30% two years ago.
“Our study reveals that the luxury retail sector is at a pivotal moment,” said Christophe Caïs, founder and CEO of CXG. He noted that the rise of digital tools and omnichannel strategies has fundamentally transformed the traditional luxury retail model. Sales advisors are now required to deliver personalized, high-quality service while mastering digital tools, necessitating a significant shift in skills.
The Evolving Role of Sales Advisors
The role of luxury sales advisors has evolved significantly. Responsibilities now include managing digital interactions, mastering storytelling, and leveraging CRM skills. This evolution demands a combination of emotional intelligence, adaptability, and technical expertise. The goal is to elevate the customer experience by meeting modern demands while preserving the authenticity of luxury.
The Impact of Interactions
The importance of customer-advisor interactions in luxury cannot be overstated. A negative interaction can lead to purchase abandonment in 78% of cases. Conversely, an exceptional experience with an advisor can increase purchase intent fivefold, rising to 86%, compared to just 17% for ordinary interactions.
“Excellence in customer experience and in-store operations stems from relational excellence, which depends on employee experience. One solution lies in training and retail academies,” noted Alexis de Prevoisin in his book Retail Emotions, Retail in Motion.
Work-Life Balance
The report also reveals that only 39% of luxury retail employees feel they have a satisfactory work-life balance. This is particularly troubling in a sector where younger generations seek clear career paths, skill development opportunities, flexible schedules, and purpose beyond mere compensation.
Innovative Recruitment Strategies
In response to these challenges, luxury brands are reinventing their recruitment methods. They are sourcing talent from diverse industries and leveraging social media and artificial intelligence to expand their candidate pools. This innovative approach enables brands to recruit more varied profiles, bringing fresh perspectives to the luxury sector.
Preparing for the Future of Luxury Retail
The report, offers a detailed examination of the future of luxury retail. It highlights the importance of reimagining the multifunctional role of sales advisors. Brands must create work environments that promote advisors’ growth while ensuring a healthy work-life balance essential for fostering long-term engagement.
Investing in the Employee Experience
“The study results highlight the urgent need for luxury brands to invest in the employee experience,” concluded Christophe Caïs.
Rethinking their Employer Value Proposition (EVP) is critical to attracting and retaining talent. Brands that prioritize talent development and align with employees’ evolving values will not only deliver exceptional luxury experiences but also maintain a sustainable competitive advantage.
Originally Published in Journal Du Luxe.
Written by Sandra Robichon.
