It’s that time of year when retailers nationwide are hunched over clipboards, scanning every SKU, closing the books on 2025, and optimizing inventory for what’s ahead. We do this every year because inventory — whether it’s fashion, electronics, or essentials — directly impacts profitability and customer experience.

Earlier this month, I had the opportunity to attend the National Retail Federation’s NRF ’26 Retail’s Big Show, and one message came through loud and clear: While retailers continue to invest heavily in inventory optimization, AI, and operational efficiency, the frontline team remains the linchpin of success. So why aren’t we applying the same discipline to managing, enabling, and fully leveraging our talent inventory?

Across sessions, panels, and conversations, leaders consistently emphasized that technology alone won’t solve retail’s challenges. The retailers pulling ahead are those pairing smarter inventory strategies with intentional investment in their people, equipping teams with the skills, clarity, and tools needed to execute in real time.

This isn’t a new phenomenon. Time and again, the retailers that keep a laser sharp focus on the people essentials are the ones that are able to consistently thrive amid disruption, even when economic, seasonal, and other market chaos rocks the rest of the industry. That emphasis on their talent inventory means their leaders are more strategic and present, and their teams are more engaged, productive, and customer-driven.

The big takeaway: Just as we scan shelves to prevent stockouts and overstocks, smart retail leaders should be asking:

  • Do we have the right team in place for 2026?
  • Do our leaders have the skills and tools to empower and grow their teams?
  • Do our associates feel energized, motivated, and supported?
  • Do they have the skills to create experiences, not just transactions?

While excess inventory slows cash flow, stretched teams and misaligned workloads slow momentum. As people become frustrated and burned out, both individual and store performance will drop. In the same way that out-of-stock situations aggravate customers and send them elsewhere, skills gaps and relentless pressure create stress and disengagement, erode morale, and increase turnover. And in today’s environment, it’s not just associates who are feeling the crunch. As retail managers and leaders battle burnout and the constant drumbeat to do more with less, it’s creating a ripple effect across the organization.

We plan reorder points and safety stock, but what about our talent stock? Do we plan development points, cross-training, and upskilling for our people?

At NRF, there was a noticeable shift in how retail leaders are talking about the workforce:

  • Not just staffing stores, but designing roles that make sense
  • Not just adding tools, but simplifying work for frontline teams
  • Not just expecting more, but supporting teams so they can deliver more

All of these shifts directly reinforce the idea of paying more attention to your “people inventory.” Just as retailers are tightening assortments and being more precise about what they carry, they’re also being challenged to think more deliberately about:

  • What skills are required on the floor today — and tomorrow
  • Where teams feel stretched or unsupported
  • How much complexity frontline associates are being asked to absorb

Current Retail Trends and Managing Your “People Inventory”

According to the NRF, this year will be defined by smarter use of technology, more efficient operations, and the need to deliver precise value to customers, not just bigger assortments.

At the same time, workforce strategy is emerging as a top operational priority, because the success of all of your inventory and customer initiatives still depends heavily on the front line. Experts agree that the winning retailers will be those focused on building teams that are empowered, connected to business goals, and supported by both real-time insights and coaching in the moment.

Another key takeaway from the Big Show was especially clear: As expectations of the frontline teams continue to rise, the cost of not investing in people readiness rises even faster. So, where should you begin? Start by analyzing these three critical aspects of your “people inventory”:

  1. Energy & Engagement: Just like seasonal stock, team energy fluctuates, and retailers are feeling the effects of it. A recent retailer survey found that inconsistent scheduling and labor mismatches are hurting frontline performance and contributing to stress and turnover. Before you assume empty shelves are the only thing hurting sales, check whether your team’s energy levels match your operational expectations.
  2. Skills & Capability Gaps: The business of retail today isn’t the same as the business of retail 10 years ago, and that has major implications for your entire workforce, from leadership to the front lines. Now more than ever, it’s vital to invest in an effective talent management strategy, people analytics, and ongoing skills development to close gaps before they impact performance.
  3. Future-Ready Workforce: Technology advances continue to transform and propel the retail environment forward, but tools alone won’t elevate performance. To ensure you get the most benefits from these new capabilities, retail leaders must invest in the continual learning, adaptability, and well-being of their people. In other words, pair your tech roadmap with a people learning roadmap.

A Smart Retail Strategy Puts People First

The most successful and resilient retailers are putting as much time, energy, and discipline into forecasting their skill demand and talent development needs as they are into forecasting their inventory demands. This includes:

  • Predictive workforce planning — just as they do for demand forecasting, using data to anticipate staffing needs
  • Tools that enable performance without adding to the administrative burden — from AI prompts to smarter shift planning
  • Flexible scheduling and better communication platforms — to help reduce burnout and stress
  • Ongoing skill development and microlearning in the flow of work — equipping employees with the retail-specific skills and strategies they need to thrive in a constantly changing environment
  • Human-centered leadership that emphasizes communication, empathy, and coaching in real time — to create a culture of learning and unlock higher performance and engagement

Through our research and work over the years with retailers of all sizes and categories, we’ve consistently seen this play out: People readiness isn’t a nice-to-have; it’s a business necessity and a competitive advantage.

As you balance ledgers and reconcile physical inventory this winter, take a moment to audit your people inventory too. Because when your teams have the right skills, energy, and tools, everyone wins: your people, your business, and your customers.

About Matt Brown

Matt Brown is a results-oriented leader with a record of contributing positive results and a reputation for great energy and enthusiasm throughout his 30 years in retail. His journey started as a seasonal team member and for the last 10 years was a Zone Vice President at Michaels Arts & Crafts. He has a passion for teaching and sharing his operational knowledge and expertise with team members at all levels. Matt’s first engagement with MOHR Retail was as a client while at Michaels helping him build and empower an even more effective and successful team.  Matt has also held additional roles such as Vice President of Operations - Retail Engineering and Optimization and Director of District Manager Development. Most recently, Matt and his wife Meredith have opened a martial arts school in Tyler, Texas where they saw a need and opportunity to support the youth in their local community by helping to empower their lives through the martial arts.

Posted in Newsletter, NRF, Retail Coaching, Retail Leadership Training, Retail Multiunit Management, Retail Staffing, Retail Store Leadership, Retail Trends
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About MOHR Retail

For more than 30 years, MOHR Retail has developed the critical people-to-people skills needed to create results in the retail industry—and we’re just getting started. Through innovative classroom and online learning methods, as well as our ongoing national retail research projects, we continue to stay on top of the trends so we can fuel the success of specialty stores, chain stores, outlets, catalogue retailers, department stores, and more. Nowhere does learning meet experience as it does in a MOHR Retail training program.