Retail is entering a defining chapter that is being shaped by rapid advances in technology, shifting consumer expectations, and intensifying economic pressures.

Disruption has become the permanent backdrop against which every decision is made, making the role of retail CEO uniquely demanding. And yet, the future is coming fast with more changes on the horizon. It makes reinvention the leadership mandate, and it starts at the very top.

CEO turnover

The pressures that come with being CEO could explain why, in 2025, retail experienced the highest turnover of top executives in corporate America. A stark reminder of the distinct challenges facing the industry.

According to business and executive coaching firm, Challenger, Gay & Christmas, more than 1,500 CEOs left their post, the highest ever on record since the firm started tracking turnover since 2002.

The report highlights retail as the top industry for CEO turnover, with 41 CEO exits year-to-date, a 116% increase from the 19 during the same period in 2024.

The rise in turnover could signal that few leaders are equipped for a role that more complex, more multi-faceted and where the ‘prove it’ window to demonstrate impact is shorter that ever.

The new CEO skillset

Being the retail CEO means more than running stores, managing teams, selecting products and forecasting demands. Today, the ‘top job’ requires they master e-commerce navigate consumer demands that can turn on a dime, navigate major geopolitical events, economic volatility, all while steering long-term transformation.

While volatility may trigger CEO turnover, some boards will see this period of uncertainty to bring in leaders with new skill sets, particularly those experienced in technology or even those who can bring an ‘outside in’ lens through working across other industries or markets.

Where once retail companies gravitated toward hiring leaders with specific category or functional skills, such as operations, sourcing and supply chain, it’s becoming less important to retail leadership. Instead, retailers are looking for leaders to have vision, can lead boldly and be part technologist and part, merchant, marketer and supply chain expert.

AI literacy is essential

Then there’s AI, which is reinventing how people shop, how businesses operate and how employees work. At the National Retail Federation’s (NRF) 2026 ‘Retail’Big Show,’ a few months back, there was no shortage of senior retail executives emphasizing the important role AI will play in retail. Macy’s chief customer and digital officer, Max Magni sees AI as “super important,” and will enable the retailer “listen to [their] customer better.”

BJ’s CEO, Bob Eddy, expects that retail will “keep advancing in AI, not to replace creativity, but to amplify it. When technology accelerates imagination, we get new possibilities for merchandising, design, forecasting, fulfilment and the art of supply that makes this industry so special.”

AI looks to remain the centrepiece of 2026 investment strategies with seven in 10 retailers planning to increase spending, driven largely by continued advances in AI capabilities, according to Accenture’s latest Pulse of Change research. Almost six in 10 of retailers report planning to leverage AI to improve forecasting, scenario planning and risk management.

Humans in the lead

Successful retail CEOs will be those who see AI as a powerful growth engine, where humans remain firmly in the lead. Why? Because the real advantage comes from leadership clearly defines where AI should be applied, identifying which outcomes matter most, and how people remain accountable for results.

In retail, that means using AI to sharpen demand forecasting, personalize customer experiences, and streamline operations, while relying on human judgment to protect brand trust, customer empathy, and long‑term value. Technology can accelerate decisions, but it’s retail CEOs who must set priorities, redesign work, and ensure AI strengthens, rather than replaces, the creativity and accountability that ultimately drive growth.

For retail CEOs to succeed in the AI era, they should consider these three questions:

Where can AI help people make better decisions?
AI can support planners, merchants, and marketers by testing scenarios and highlighting patterns. However, people must remain accountable for judgment, brand, and trust.
Which processes should be redesigned, not just automated?
AI delivers the most value when it’s built into how work flows across teams, not restrained by siloes or layered on top of broken processes.
How do we prepare our people to work with AI?
This means training, clear decision rights, strong guardrails, and leadership role‑modelling. Learning has to be ongoing and led from the top.

AI is not the silver bullet

Successful retail CEOs will be those who don’t treat AI as a shortcut or a silver bullet. Instead, they will use it to strengthen people, simplify work, and rethink how the business runs. Ultimately, they’ll be the ones who help their organizations learn, adapt, and deliver value, with people always at the center of their thinking.

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