UK retailers ramp up AI hiring as broader recruitment cools

Tech roles are taking center stage

Retailers are leading the consumer sectors in tech recruitment this year, accounting for close to half of vacancies and outpacing areas like luxury and travel and leisure, according to Vacancysoft, which compiled the data with recruitment platform Mercury. The pitch is simple: invest in tools that can lower costs and lift productivity, even while tightening belts elsewhere.

"Retailers are no longer choosing between cutting costs and investing in technology," said Vacancysoft Chief Executive Officer James Chaplin. He predicts hiring will rebound next year as firms resume projects they put on hold just before last month's government budget announcement.

The mix of roles is shifting too. Demand is moving toward engineers who can build and deploy new systems, and postings for IT analysts are shrinking as businesses embrace AI and automation.

Big names are increasing tech hiring

Tesco Plc illustrates the tilt. Vacancysoft says the grocer's monthly tech hiring is almost 40% higher than a year ago. The company said its technology team has doubled to 6,000 over five years and uses data and AI for personalized offers and loyalty benefits. "Technology and AI are increasingly important to how we serve our customers and grow our business," a spokesperson said.

Marks & Spencer Group Plc boosted monthly technology vacancies by 44% after dealing with a cyberattack last year. Asos Plc, targeted by hackers in October, increased listings by 34%. M&S described technology as central to its strategy, and Asos did not provide a comment.

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Why retailers are changing who they hire

The tech buildout sits against a broader hiring slowdown. Companies are pulling back on recruitment for areas including in-store staff as higher taxes and wage bills bite. Bloomberg's June analysis of annual reports from leading retailers showed nearly 18,000 positions were eliminated over the past year, and many chains are trimming seasonal hiring for Christmas.

At the same time, AI is moving from pilot to practice. Tesco is rolling it out across stock management, supply chains and personalized Clubcard offers, and is developing an AI shopping assistant to suggest meals and build baskets. Asos has launched AI-powered virtual fitting rooms, styling tools and customer-service assistants. At M&S, AI tools now forecast stock levels and ordering, create marketing content, and tailor deals for Sparks loyalty customers.

What it means for investors

In plain English: retailers are easing up on hiring in parts of the business such as in-store roles while channeling spend into automation and engineering talent. That signals where efficiency gains and growth projects may show up next year - in the plumbing of loyalty, logistics and service rather than headcount expansion on shop floors. Watch who is growing their builder bench, which tools they ship, and how quickly those products show up in customer journeys.

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