Abstract
The South African retail sector, a cornerstone of the national economy, is responsible for selling goods and services directly to consumers, contributing 20% to national employment and 11.5% to the gross domestic product (GDP). In 2023, the sector reported R1.153 trillion in sales, underscoring its economic significance despite recent downturns in trade activity. However, this sector faces significant challenges, particularly in leadership, as it contends with rapid technological advancements driven by Industry 4.0 and the imminent Industry 5.0. These technological shifts have intensified existing skills gaps, particularly in leadership roles such as retail manager, sales manager, and marketing manager, where competencies in self-leadership, adaptability, and people management are lacking. This skills deficit is deepened by the misalignment of current retail curricula and pedagogy at public higher education institutions (PHEIs) with the retail sector’s need for leadership skills. As the sector continues to evolve, the need for a curriculum that can effectively prepare graduates for leadership roles in a technologically advanced retail environment becomes increasingly urgent. Addressing this gap is essential not only for sustaining the sector’s economic contribution but also for ensuring that South Africa’s retail sector remains competitive in the global market. The development of a leadership pedagogy that aligns with these new technological realities is thus critical for the future of retail education and for the broader economic stability of the nation.
To address the leadership skills gap within the South African retail sector, this study adopted a qualitative, explorative research approach and used interpretive phenomenological analysis (IPA) to gain deep insights into the experiences and perceptions of key stakeholders. The research was conducted in four sequential phases, each employing a distinct method to gather comprehensive data. In the first phase, the leadership development process maturity index (LDPMI) was applied to a sample of experienced human resource specialists (n=8) employed at large South African retailers to assess their focus on different leadership levels and training budget allocations. The second phase involved conducting in-depth semi-structured interviews with the same human resource specialists (n=12) from the first phase to explore the specific leadership skills gaps in the retail sector. The third phase focused on evaluating the current advanced retail curriculum and pedagogy at PHEIs,
analysing curriculum documents from five institutions (n=5) to assess their effectiveness in preparing graduates for leadership roles. In the final phase, semi-structured interviews were conducted with young adult graduates of Advanced Diploma (AdvDip) retailing programmes (n=7) to explore their perceptions of leadership readiness and the competencies they developed during their education.
The study revealed that the South African retail sector experiences low leadership self-leadership, adaptability, interpersonal skills, and practical skills. These deficiencies were particularly evident in the current advanced retail curricula offered by PHEIs, which do not adequately prepare graduates for the evolving leadership demands of the retail sector. The interviews with young adult graduates further highlighted a disconnect between their academic preparation and the practical leadership skills they required in the workplace, underscoring the urgent need for curriculum reform to address these shortcomings.
This study makes significant contributions to the literature by addressing the urgent need for a realignment of retail curricula at PHEIs to better prepare graduates for leadership roles in the rapidly evolving South African retail sector. By developing and proposing a leadership pedagogy that is tailored to advanced retail education, the study expands existing knowledge on dynamic capabilities, leadership skills, and curriculum design. It answers the call from previous research, such as that of Pantano et al. (2020) and Mobarak (2019), which identified a disconnect between the skills demanded by the modern retail sector and the educational content provided by universities. In addition, the study offers a nuanced understanding of leadership development process maturity in the retail sector, emphasising the need for targeted interventions in both academic and organisational contexts.
In practical terms, the research provides valuable insights for PHEIs and retail stakeholders by identifying critical leadership competencies—self-leadership, adaptability, resilience, and innovation—that are currently underdeveloped in retail education programmes. A key contribution of the study is the development of the ‘retail-ready graduate’ persona, a strategically designed composite framework that synthesises these critical attributes and thus serves as a comprehensive guide for PHEIs and retailers to foster the essential skills and competencies needed for future retail leaders. Methodologically, the study contributes to the broader field of qualitative
research by applying the LDPMI within a retail context and developing innovative approaches to data saturation and analysis. The integration of AI tools for preliminary data coding and the development of persona narratives further enhances the depth and rigour of the research, providing a robust framework for evaluating leadership development practices in similar contexts globally.
The research proposes a curriculum framework for advanced retail education that leverages new technologies and pedagogical approaches in order to enhance leadership skills, preparing future leaders for a sustainable South African retail sector in the context of Industry 4.0 and 5.0. This framework aims to address the identified gaps, fostering a more sustainable and competitive retail sector.
Keywords:
Leadership development; Retail sector; Public higher education institutions (PHEIs); Industry 4.0; Industry 5.0; Curriculum design; Interpretive phenomenological analysis (IPA); Leadership pedagogy