Becoming the chief executive of a global retail firm might seem like a dream. It implies reaching the top of a competitive field, earning millions in compensation, and having the opportunity to reorient and determine the future of hundreds of stores, thousands of employees, and millions of consumers. So why do all these new retail CEOs seem so worried?

Current trends make retail leadership even more challenging and uncertain than ever before. Inconsistent tariff policies mean it’s nearly impossible to establish clear, confident cost predictions. Consumers are exhibiting an ongoing crisis of confidence, unsure about how far their disposable income can go and unwilling to spend more than they must. As these macro-level trends add pressure to the business, employees worry about the threat of layoffs and store closures. Meanwhile, shareholders continue to clamor for sufficient returns on their investments, demanding the retail leaders find novel sources of substantial revenue.

Together, these trends have prompted new approaches to leadership in many firms. It appears that more companies are willing to take a risk and appoint a brand new CEO, someone without prior experience in that role, in the hope that their perspective will be radically different and powerfully effective. Another notable trend involves “listening tours,” such that new leaders make it a priority to solicit direct feedback from employees across the hierarchy, to determine what problems they see and what solutions they might prefer.

These tours had better be short though. To keep boards and investors happy, new retail CEOs need to devise and start implementing their strategy within the first three to six months after their appointment. Once they’ve done so, experts note that they only have about a year to prove it works. If they don’t, they face another notable trend in modern retail: massive turnover among leadership ranks.

Compared with many other industries, retailing sends leaders packing far more quickly and more often. When calculating all turnover among executives, retail firms account for approximately one-quarter of firings. Whereas CEOs in technology sectors can count on an average 10-year tenure, and finance executives average nearly 9 years, chief executives in retail last less than 6 years on average.

Discussion Questions

1. Having read about these challenges, would you still want to lead a retail chain at some point in your careers?
2. Should new retail leaders be evaluated with the same standards, despite the unprecedented conditions they face?

Sources: Jordyn Holman, “A Bad Time to Take the Helm? New Retail Leaders Face Extra Headaches,” The New York Times, September 27, 2025.