Deck The Aisles With AI: Supporting Staff, Delighting Customers

With holiday underway, we are in what is traditionally the highest spending months of the year. Many retailers rely on these sales to meet annual revenue targets. According to Statista, holiday sales contributes between 15 and 20% of yearly retail sales for the U.S. market.

In many ways it’s a make-or-break time for retailers with the pressure to have a successful season depends on the very people who keep the operations running: the frontline workforce.

According to the National Retail Federation, Retail is the largest private-sector employer in the U.S., contributing $5.3 trillion to annual GDP. Of the 55 million workers, retail supports more than one in four U.S. jobs.

While retailers finalize and adjust their sales and promotional strategies, having motivated frontline retail workers to cover peak seasonal demand will be key to delivering a successful holiday season.

However, according to Accenture’s U.S. Retail Frontline Worker Survey, these plans could be put to the test as workers report heightened stress and fatigue. A large proportion, some 69%, of workers report feeling exhausted and more than two-thirds of retail executives are concerned about retaining their frontline staff. This is a wake-up call for retailers to address worker fatigue and stress, not just as a welfare issue, but as a business imperative.

The frontline pressure cooker

Frontline retail workers are the unsung heroes of the holiday season, from greeting customers and answering questions to keeping stores running smoothly, even when the pressure is high. However, when stores get busy and stress levels rise, even the best store layout or ad campaign can fall flat if a customer is greeted by a tired and disengaged associate.

Managing lines of customers and crowd control in busy areas is the most difficult task for 47% of workers, while 38% find answering product availability questions or preventing theft particularly stressful. It’s no wonder that 50% of consumers are frustrated when they can’t easily reach staff for help, and 51% of frontline workers report inadequate holiday staffing.

The expectation gap

The gap between what shoppers expect and what retailers are prepared to deliver is alarming, according to Accenture’s survey 85% of shoppers abandon carts due to feeling overwhelmed, yet only 32% of retailers expect this frustration to drive customers away.

This disconnect is further exacerbated by in-store issues like products listed as “in stock” online being unavailable in-store, a problem reported by 82% of frontline workers, and frequent price mismatches, noted by 73% of them. These inconsistencies can frustrate customers and erode trust, especially during the peak of the shopping season.

Human + AI in action

Despite these challenges, there is a beacon of hope in the form of Gen AI and digital tools, and we’ve seen significant innovation across the retail world already. The rapid uptake of Gen AI tools in consumers’ everyday lives is making its mark on the shop floor. Two-thirds of consumers now use Gen AI, and the same proportion of frontline retail workers recognize its potential to enhance their work experience.

Media Markt Saturn, a major European electronics retailer, launched ‘mybuddy’, a voice-activated AI assistant for store employees. Mybuddy offers instant product information during customer interactions without disrupting conversations. Employees responded positively, adopting the tool and adding experience with generative AI to their resumes.

Additionally, Starbucks has piloted ‘Green Dot Assist’, an Open-AI powered assistant for baristas which provides instant answers to operational questions, such as recipes and machine troubleshooting, that previously required searching through manuals or the intranet. This results in faster service and more time spent engaging with customers.

Similarly, Target’s ‘Store Companion’ is a Gen AI chatbot delivered via handheld devices that help associates with process questions like restarting registers or signing up customers for loyalty programs. Following a successful pilot, it has been rolled out more widely, improving efficiency and reducing reliance on managers for routine queries.

Walmart has also embraced Gen AI with tools that assist associates in managing waste and inventory. These AI driven solutions advise on price changes, when to return products to vendors, or donate and recycle items, cutting operational waste and enhancing sustainability.

Fashion giants such as H&M and Zara are using AI chatbots to provide styling tips, check stock availability, and offer personalized recommendations. At H&M, this has improved engagement and reduced cart abandonment by up to 30%, a significant win for both retailers and customers.

A better holiday playbook

The holiday season is a critical time for retailers to address worker fatigue and stress, and by investing in gen AI and digital tools, they can not only improve the shopping experience but also make frontline roles more rewarding. This requires a commitment to modernizing infrastructure, training staff, and fostering a culture of continuous learning and improvement. It may not be there for this season, but it’s sure to be on the agenda for next year.

The key is to see AI as a partner, not a replacement, and to use it to enhance the human touch that makes retail unique. AI can help streamline operations and provide valuable support, but it cannot replace the warmth and connection that a motivated and well-supported frontline worker can offer.

Not every retailer will have these AI tools in place this season, so let’s show a little extra grace to the frontline teams—the people making the holidays happen every day.