In the competitive Consumer & Retail landscape, leadership demands are sharper and shifting faster than ever before. Throughout my career, I have seen firsthand how companies are constantly evolving, striving to keep up with market shifts, consumer behaviour, and technological disruption. What is becoming abundantly clear is that the leadership required to succeed in this landscape is changing too.
According to our 2025 MU Executive Barometer, which surveyed senior leaders across the sector, the top leadership competencies have evolved:
These findings are no surprise. Consumer & Retail organisations are in a constant state of flux, and the leadership capabilities required to stay competitive have become increasingly complex. But here is where the gap lies - even the most strategic, adaptable leaders sometimes miss one crucial component of leadership: empathy.
The MU Executive Barometer reveals a strong emphasis on strategic thinking and adaptability, both essential in today’s business landscape. Yet the gap between strategic foresight and human connection remains striking. As an executive search consultant, I regularly see clients seeking leaders who can think long term, adapt to change, and execute effectively. Soft skills are sidelined, based on the assumption that technical expertise is sufficient to lead through complexity. This is a costly misconception.
The success of any strategy depends entirely on how well the people in your organisation understand and execute it. When leaders fail to connect with their teams, they miss the opportunity to inspire the commitment needed to bring plans to life. This is where empathy becomes essential.
Empathy is not about kindness, it is the capacity to deeply understand and relate to the thoughts, emotions, and experiences of others. It is about actively listening, recognising diverse perspectives, and seeking to understand the underlying motivations, concerns, and interests of those you lead.
I once supported a senior executive in the retail sector who introduced a well-structured strategy to improve the customer experience. Despite its clarity, the initiative lost momentum. Frontline employees, who were closest to the customer, had been left out of the process. Their insights were never considered. It was a clear reminder: empathy is the bridge that closes the gap between strategy and execution. Without it, even the strongest plans can falter.
Empathetic leadership has become a critical driver of organisational performance. According to Deloitte’s 2024 Global Human Capital Trends report, empathy fosters trust, collaboration, and innovation—qualities essential in today’s customer-focused environment. Leaders who demonstrate empathy are better equipped to understand and support their teams, leading to higher engagement and productivity. Organisations that integrate empathy into their leadership culture consistently achieve stronger employee retention, improved performance outcomes, and deeper customer relationships. In a marketplace where customer experience is a defining factor, empathy not only strengthens internal cohesion but also enhances client connection and competitiveness. Ultimately, the ability to understand and relate to people is what unlocks the full potential of an organisation.
Traditional leadership programs tend to focus on “hard” skills: financial acumen, operational excellence, and strategy execution. These are all important, but they fail to address the human side of leadership. Developing emotional intelligence, learning to understand and empathise with diverse teams, and improving communication skills, these are just as vital as strategic thinking. How can companies develop leaders who are not only strategically astute but also emotionally intelligent and empathetic?
To be truly effective today, leadership programs must cultivate both cognitive and emotional intelligence, equipping leaders to navigate the complex realities of modern business. Having worked closely with clients across a range of industries, I have seen some of them adopt highly interesting approaches when developing their leaders, approaches that really stand out to me because of their simplicity. What really impressed me is how these clients integrate leadership development into real-world experiences, moving far beyond theoretical frameworks.
One particularly impactful approach I observed was the "walk in their shoes" method: a senior executive spent an entire day working on the shop floor during a busy period. By experiencing the pace, pressure, and direct interactions with customers, the executive gained a genuine understanding of the operational challenges and the remarkable adaptability of frontline employees. That experience fundamentally shifted their leadership approach—not based on assumptions, but on direct personal insight.
Another compelling example involved the use of an Empathy Matrix to better understand what teams require to become high performing. In this case, leaders mapped out what their team members see, hear, think, and feel in their daily roles, identifying points of frustration, unmet needs, and emotional drivers. This structured exercise revealed hidden obstacles and allowed leadership to tailor communication, support, and resources more effectively, resulting in higher engagement and improved performance.
These immersive experiences allow leaders to build empathy for their teams, which in turn fosters better decision-making and stronger relationships. As leaders build these connections, they also cultivate a sense of trust and loyalty within their teams. When leaders truly understand the challenges and motivations of their teams, they can inspire them to go the extra mile to achieve organisational goals.
Returning to the findings of the MU Executive Barometer, despite ongoing economic uncertainty, there is a strong sense of optimism within the Consumer and Retail sector. 75% percent of executives express confidence in their organisation’s growth prospects over the next 12 months. While this optimism is a powerful catalyst for progress, it will only be sustained if leadership evolves to meet the sector’s rapidly changing demands.
To fully harness this momentum and secure long-term success, organisations must prioritise:
Strategic thinking and a clear focus on results remain foundational to effective leadership. However, without empathy, these capabilities often fall short in practice. Leadership is not solely about vision and execution. It is about understanding the people who bring that vision to life. Empathy is not a peripheral skill, it is a central, performance-driving force. Organisations that embed empathy at the core of their leadership models will not only close the competency gap, but they will also define what successful leadership looks like in the future of the industry.