Given the numerous and complex challenges that retail staff have confronted in recent years – such as rampant underpayments, retail crime, customer aggression, the Covid-19 pandemic and cost of living pressures – it might come as no surprise that burnout, turnover and absenteeism remain high. However, recent findings from a survey conducted by the Australian Retailers Association (ARA) are alarming. It revealed that more than three-quarters of retail workers experienced stress, anxiety
nxiety, and depression within a four-week period, while nearly half reported incidents of physical assault or harassment in the workplace.
About 36 per cent of those surveyed said that their mental health had not improved since the end of the pandemic, with 45 per cent expressing the need for more support to manage mental health issues.
These challenges are by no means distinct to Australia. According to a 2023 Waitwhile survey of 1000 US frontline retail workers, almost half were found to be apathetic or unhappy while at work.
ARA CEO Paul Zahra said that now is one of the most challenging times for staff working in the industry.
“The cost-of-living crisis, the cost of doing business crisis, and the fear of being assaulted or abused at work is having a detrimental effect on the mental health and stress levels of retail workers,” Zahra said.
“This isn’t a battle that retailers can fight alone. Almost half of our respondents say they need more help to manage mental health issues in their workplace.
“Retailers are at the coalface of the post-pandemic economic crisis, but they’re also shouldering the social ramifications such as the increase in violent and anti-social behaviour.”
“Abuse and worse”
The Shop, Distributive and Allied Employees’ Association (SDA), the union for retail, fast-food, and warehousing workers, have advocated for tougher penalties to address retail crime, with national secretary Gerard Dwyer previously telling Inside Retail that wages have not kept pace with cost of living pressures. This, he said, has been a challenge faced by retailers in retaining their workforce.
Dwyer noted that retail workers in Australia are under increasing work intensity, with constant pressure to reduce staff hours in stores. This, coupled with the “continued epidemic” of customer abuse and financial pressures has compounded the difficulties faced by retail workers.
He commended the efforts of the ARA in tackling retail crime, and emphasised the need for all parties to work together to prevent abuse.
Regarding practical solutions, Dwyer suggested reforms which ensure that police and the courts are empowered to properly protect staff, as well as workplace designs that deter theft and customer abuse.
“We have advocated for tougher penalties for a good reason – we think if enforced the new tougher penalties will help businesses immensely and reduce pressure on police,” Dwyer said.
“Shoppers should remember that retail workers are providing an essential service – ensuring you get the essentials of life to put food on the table and provide for your children. They should not be subject to abuse and worse.”
The SDA also welcomed recent actions taken by governments to increase penalties for shoppers who abuse or threaten violence against retail workers.
“The South Australian government took the lead; now NSW has followed suit and all other state and territory governments should act expeditiously to address this scourge,” Dwyer said.
Longer term exhaustion
Dr. Samineh Sanatkar, a postdoctoral research fellow in the workplace mental health research program at the Black Dog Institute – a not for profit, mental health medical research institute – told Inside Retail that the retail sector has experienced unforeseen disruptions in recent years, largely due to the Covid-19 pandemic.
She pointed out that many people who were previously employed in retail had to transition to less secure work, such as entering the gig economy, in order to make ends meet during the pandemic. This job insecurity often has detrimental mental health outcomes.
For those who remained in the retail industry, however, mental health strain has often intensified, with staff facing more stressful conditions. Sanatkar explained that this has led to “emotional exhaustion.”
“The pandemic may have left the news cycle, but this new data indicates that the mental health effects are persisting and are taking on a different form. What has been acute distress and uncertainty under Covid-19 has now entered the stage of longer-term exhaustion,” Sanatkar said.
“The rising cost of living can affect customers negatively, with some showing more problematic behaviours towards retail staff which can be difficult to handle.”
Sanatkar added that providing additional financial support can be beneficial in alleviating distress, particularly if financial strain is a primary cause. However, these challenges might still persist.
“This is because mental health problems can have a number, or a combination of, different causes which would need to be addressed to support staff with mental health problems optimally,” she said.
Protecting workers
Regarding practical changes to improve health outcomes and employee wellbeing, Sanatkah suggested retail management consider the following: reasonable work hours and leave arrangements, clear job roles, a supportive team environment and perceptions of transparency and fairness in the workplace.
She observed that, when the mind is constantly wired, it can be difficult to release stress. This, in turn, can lead to exhaustion and more stress.
“It can be difficult to achieve all supportive conditions at once, but a good place to start is to look to develop a culture centred on employee value and fostering positive team relations and supervisor support,” Sanatkah said.
Further, workplaces should implement robust safety protocols for situations including, but not limited to, break-ins and medical emergencies. She noted that psychosocial risk assessments and management can minimise exposure to workplace harm, as can manager mental health training.
“We encourage businesses to think of mental health support as a force to protect employees and business operations. If detrimental actions occur, such as bullying, this needs to be dealt with immediately,” she said.
More empathetic and values-driven leaders
Skincare brand Stuff has emphasised its support for men’s mental health, with founder, Hunter Johnson launching The Man Cave – a preventative mental health and emotional intelligence service for young men – in 2014.
This B Corp retailer, which was introduced during the pandemic, has partnered with the charity, and is committing to sponsoring a young male’s participation in The Man Cave program for every $1000 it makes in sales.
Michaela Davis, Stuff general manager, said that the mental health movement has evolved in recent years, with more awareness and funding injected into the sector. However, she believes that there is still a long way to go.
“What we’re still seeing, including in the retail sector, is a lack of help-seeking behaviours for when times do get tough, increased loneliness due to a lack of deep, quality friendships [as] as well as cost of living challenges,” Davis said.
She added that the pandemic has accelerated the need for more empathetic and values-driven leaders, with many retailers finding themselves managing a workforce through a global trauma for the first time.