Leadership coaching has emerged as a powerful tool for professional development, particularly for executives leading small—to medium-sized retail businesses (SMBs).
Effective leadership is more critical than ever in an industry facing rapid market shifts, talent challenges, and digital disruption.
We created this report to provide an in-depth look at leadership coaching, how it differs from other forms of development, how it works in practice, and why it is vital for retail SMB executives.
We will also explore real-world success stories, present data on coaching outcomes and return on investment (ROI), highlight current trends (from digital coaching platforms to AI integration), and offer a forward-looking perspective on how leadership coaching will evolve in the next 3–5 years for retail SMBs.
What is Leadership Coaching?
Leadership coaching is a one-on-one partnership between a trained coach and a leader (client) aimed at helping the leader maximize their strengths, address challenges, and improve their leadership effectiveness.
Unlike general skills training, leadership coaching is highly personalized. The coach acts as a thought partner to facilitate the leader’s growth. For example, a leadership coach may help an executive become a better communicator, decision-maker, and team leader by guiding them through self-reflection and strategic action planning.
The coaching process is typically goal-oriented: the leader and coach identify key development goals (such as improving team engagement or navigating change) and work collaboratively toward achieving them.
A leadership coach provides support, feedback, and accountability as the leader develops new behaviors and strategies that align with their role’s most important priorities. In essence, leadership coaching focuses on unlocking a leader’s potential to achieve their and their organization’s objectives.
Coaching vs. Mentoring
It is essential to distinguish leadership coaching from mentoring. In coaching, the coach does not simply tell the leader what to do based on the coach’s expertise; instead, coaching is a facilitative process where the coach asks probing questions and encourages the leader’s self-discovery and problem-solving.
By contrast, a mentor is usually a more experienced professional in the same field who shares knowledge, advice, and personal experience with a less experienced mentee.
Mentoring tends to be an advisory, long-term relationship focused on guidance and support. In contrast, coaching is often shorter-term and focuses on specific developmental outcomes through the coachee’s insights. One source succinctly notes: “Executive coaching uses a trained coach to help the coachee discover their solutions through self-reflection and exploration, whereas mentoring involves sharing knowledge and advice from the mentor to the mentee.”
In other words, a coach helps leaders find their answers, while a mentor offers answers based on experience.
Coaching vs. Consulting
Leadership coaching also differs from consulting. A consultant is hired as an expert problem-solver who provides recommendations or fixes to specific business problems.
Consultants typically analyze a situation, deliver direct advice or solutions, and often help implement those solutions.
Coaching, however, is client-centered. The coach guides the leader to develop solutions rather than outright delivering answers.
For example, a retail SMB executive might hire a consultant to design a new inventory management process (a specific problem requiring an expert solution). Still, they would work with a coach to improve their leadership style or decision-making approach.
One business coach explains the distinction well: “As a consultant, I tell clients what to do to solve an issue… as a coach, I partner with them to expand their awareness, clarify what they want to achieve, identify obstacles, and create their strategy to overcome those obstacles.”
Consulting is typically short-term and task-focused, whereas coaching is a developmental journey that builds the leader’s capabilities for the long run.
Coaching vs. Training
Training is another standard development method that differs from coaching. It usually involves a structured program or workshop that teaches specific skills or knowledge to a group or individual.
It is often instructor-led and directive – for example, a seminar on retail customer service skills or a course on using a new software system. During training sessions, an expert instructs and provides content; the flow of knowledge is mostly one-way (from trainer to trainee).
Coaching, in contrast, is interactive and personalized. Rather than a preset curriculum, coaching sessions are driven by the leader’s unique goals and challenges. While training might arm a new store manager with knowledge (e.g., the principles of visual merchandising), coaching helps that manager apply knowledge in context, reflect on experiences, and continuously improve through feedback.
A simple way to differentiate: “Training imparts knowledge or skills with a directive approach, giving people the tools to succeed in a task or role
Coaching shifts the focus from instruction to exploration – the coach uses questioning to stimulate the individual’s critical thinking and solutions.”
In practice, many development programs combine training, mentoring, and coaching elements, but understanding these distinctions is key.
Leadership coaching stands out for its client-driven, inquiry-based approach, which builds a leader’s self-awareness and ability to solve problems independently rather than providing them with ready-made answers or general training content.
How Leadership Coaching Works in Practice
Leadership coaching typically unfolds through confidential one-on-one sessions between the executive and the coach. The process usually begins with establishing rapport and clear objectives.
A coach will often start by helping the leader identify key goals or areas for development, such as improving team morale, developing strategic thinking, or navigating a digital transformation project.
Coaches frequently use initial assessments (such as 360-degree feedback surveys and personality or leadership style assessments) to gather insight into the leader’s strengths, blind spots, and growth opportunities.
Based on this, the coach and leader co-create a development plan with specific, measurable objectives that align with the business’s needs.
Session Format and Frequency
Coaching sessions are typically structured as focused conversations. In practice, many executive coaches schedule sessions of about 60 minutes conducted twice monthly.
This bi-weekly rhythm is common, though there is variation: some coaches meet weekly or monthly, and session length can vary from 45 minutes to 90 minutes, depending on the agreement.
Between sessions, some coaches also offer brief check-in calls or emails to maintain momentum on action items
Coaching engagements usually span several months; a minimum commitment of 6 months is typical to allow time for real behavioral change.
Company-sponsored coaching programs often use a standard 6-month engagement of bi-weekly meetings. Many coaching relationships extend to a year or more, especially if the coaching is proving valuable.
The duration is flexible based on needs – some leaders re-engage their coach later when new challenges arise.
Sessions can be conducted in-person or virtually (video/phone), and virtual coaching has become very common, enabling busy executives to connect with their coach from anywhere.
During a coaching session, the methods used are conversational and reflective. The coach will actively listen and ask open-ended questions that prompt the executive to think deeply about their challenges and options.
Instead of telling the executive what to do, the coach facilitates insight, asking, “What outcome do you want from this initiative?” or “What might be holding you back from addressing that employee issue?” Through skillful questioning, coaches help leaders reframe problems, consider new perspectives, and clarify their course of action.
Notably, a coach also provides honest feedback in a supportive way. They may share observations about the leader’s behaviors or patterns (holding up a “mirror”), which increases the leader’s self-awareness. Over time, this process helps the executive identify solutions and strategies they are fully bought into because they arrived at them themselves.
Most coaching engagements follow a general arc:
- Initial Assessment & Goal-Setting: The coach helps define success. For instance, a retail COO might set a goal to “improve staff retention by becoming a more empowering leader.” The coach and executive agree on metrics or indicators of progress (like turnover rates or 360 feedback from team members).
- Development Sessions: In each session, the leader brings real situations or decisions to discuss. The coach might employ various techniques – e.g., role-playing a tough conversation, analyzing a recent decision that went wrong, or brainstorming solutions to a current problem. The coach’s role is to guide the leader’s thinking, not to dictate. One hallmark method is asking thought-provoking questions that lead the executive to new realizations: “What assumptions are you making about your customers that might be outdated?” “How could you involve your store managers in solving this issue?”, etc. Such questions stimulate critical thinking and often uncover insights or options the leader hadn’t considered.
- Action and Accountability: At the end of sessions, coaches often have the executive commit to specific actions to apply before the next meeting. For example, the executive might agree to practice a new feedback technique with their team or to gather data on a problem. The coach will review what happened by the next session, holding the leader accountable for progress. This accountability mechanism helps translate insights into fundamental behavioral changes on the job.
- Ongoing Feedback: The coach provides a neutral sounding board through continuous dialogue. Executives can candidly discuss sensitive issues (coaching sessions are typically confidential), such as fears about meeting sales targets or frustrations with a business partner, in a safe space. The coach offers encouragement, perspective, and occasional challenges (e.g., calling out inconsistencies between the leader’s goals and actions) to keep the leader on track. Trust is crucial – as one study found, building trust from the first session is essential for coaching success.
Throughout the process, the focus remains on the leader’s development.
Coaching may incorporate some advising or teaching moments (especially if the coach has relevant experience), but it predominantly uses facilitation.
It’s worth noting that many executive coaches take a versatile approach and may wear multiple hats when needed—consultant, mentor, and coach.
For example, suppose an SMB retail executive faces an immediate knowledge gap (say, unfamiliarity with e-commerce analytics). In that case, a coach might briefly step into a consulting mode to provide that knowledge.
However, the coach will return to proper coaching mode when working on how the executive can lead the digital strategy implementation.
Balancing these roles, a skilled coach ensures the client thinks and learns. This process of self-derived learning is why coaching tends to produce lasting behavior change – leaders internalize new ways of thinking and leading rather than simply following an expert’s instructions.
Finally, leadership coaching often extends beyond individual leaders’ performance to broader organizational impact.
Effective coaches tie individual goals to business outcomes. For instance, an executive’s goal to become a better delegator isn’t just personal growth – it should result in a more empowered store management team and improved store operations. Coaches help make these links explicit.
Over time, a coached leader will likely see improvements in areas like decision-making speed, team climate, and strategic clarity, which in turn benefit the business’s bottom line (as later sections on ROI will show).
In summary, leadership coaching in practice is a structured yet flexible journey of reflection, action, and growth – typically conducted through regular one-on-one sessions – that enables leaders to perform at their best by learning and adapting in real-time with the guidance of a dedicated coach.
Importance of Leadership Coaching for Retail SMB Executives
Leading a retail small or mid-sized business today is a formidable challenge.
The retail sector is undergoing seismic changes—from the e-commerce boom and shifting consumer expectations and customer experience to labor shortages and supply chain disruptions—all pressuring SMB executives to evolve rapidly.
Leadership coaching is particularly valuable in this context, as it helps retail leaders develop the agility, resilience, and people skills needed to navigate an ever-changing landscape.
Let’s examine why coaching is essential for retail SMB executives in light of evolving market demands, talent challenges, and digital transformation.
Navigating Rapid Market Changes and Digital Disruption
The retail industry has always been dynamic, but the pace of change in recent years is unprecedented. Technology advances (online shopping, mobile payments, AI-driven personalization), disruptive startups, and changing consumer habits fundamentally reshape the retail business.
Traditional retailers, including many regional SMBs, often struggle to keep up with these changes.
Executives must pivot business models (e.g., adding curbside pickup or launching an online store), all while maintaining a consistent customer experience. Leadership coaching provides critical support in such times of disruption.
It enables executives to retreat from the daily fire-fighting and develop strategic adaptability. As one industry analysis noted, “Navigating the treacherous and always-changing retail terrain requires leaders to become agile and adapt to short-term challenges without losing sight of long-term vision. Coaching is the ideal tool to help leaders rise above the day-to-day grind, remain resilient, and lead strategically.”
In practice, a coach can work with a retail executive to strengthen their strategic thinking skills – for example, helping them clarify a long-term omnichannel strategy (the “north-star” vision) while also coaching them on decision-making under uncertainty for short-term problems.
The result is a leader who can think big and execute nimbly, a vital combination in retail.
Digital transformation, in particular, is an area where many SMB retail leaders benefit from coaching.
Unlike large corporations, smaller retailers may not have extensive internal training on leading digital initiatives, and the executives themselves might be learning as they go. A coach guides the transformation, helping the leader build confidence in areas like technology adoption, data-driven decision-making, and innovative thinking.
For instance, if an SMB owner transitions from a pure brick-and-mortar model to an e-commerce hybrid, a coach can help them work through their reservations and build the leadership mindset needed for this change.
One can look at the macro data: online sales now account for a considerable portion of retail growth (nearly half of retail growth in a recent year came from online channels, and even traditionally offline businesses are mixing digital with physical to survive.
Coaches help leaders internalize these trends for their business strategy and leadership approach. By developing greater openness to change and continuous learning (traits a coach will cultivate through reflective questioning), retail SMB executives become better equipped to lead their companies through digital disruption rather than being left behind.
Tackling Talent and Workforce Challenges
Beyond market forces, talent management is a critical concern for retail SMBs.
Retail has historically high employee turnover, especially in front-line roles, and smaller businesses often struggle to attract and retain high-quality staff. Nearly half of retailers (49%) say hiring and retaining quality staff is their most significant challenge for the coming year.
The average retail employee turnover rate in the U.S. is around 60% annually, far higher than many other industries.
Such constant churn can be crippling for an SMB, leading to inconsistent customer service and high training costs. Leadership coaching directly addresses the human side of the business by helping executives become more effective people leaders.
How a leader manages and engages employees greatly impacts retention and performance.
The adage “people leave managers, not companies” often holds. Coaching helps retail executives develop the soft skills and emotional intelligence needed to inspire and retain their teams.
For example, a coach might work with a store owner to improve their feedback and recognition techniques or create a more empowering culture where employees feel valued. This is particularly important given today’s workforce expectations.
Retail employees (often millennials and Gen Z) seek development and a positive work environment; a leader who has been coached in active listening and coaching their own employees can foster a more supportive culture.
Indeed, organizations invest in coaching for individual performance and the ripple effects on employee engagement. There is strong evidence linking coaching to higher engagement across teams.
One study found a clear correlation between organizations with coaching cultures and increased employee engagement and retention.
In a retail SMB setting, this could translate to lower turnover rates – something the coach and executive might set as a concrete goal to improve over the coaching engagement.
Moreover, many retail SMBs have relatively inexperienced managers (often people promoted from front-line roles without extensive leadership training). Coaching can fill this gap by essentially developing the leadership pipeline.
A coach can work with the top executive and sometimes with store managers or department heads (one-on-one or in group coaching sessions) to build their management capabilities.
This multiplies the impact: the more business leaders who adopt a coaching mindset with their teams, the better the overall organizational climate.
According to a global coaching study, democratizing coaching to multiple levels of management is seen as a strategic imperative for meeting today’s business challenges.
In short, coaching helps retail SMB leaders create a workplace where employees are motivated, heard, and guided—all of which address talent challenges head-on by improving retention and productivity.
Finally, coaching is essential for retail SMB executives as a form of personal support and development in a demanding role. Running a smaller retail business often means wearing many hats (operations, marketing, HR all at once) and can be isolating at the top.
A coach serves as a confidential confidant and thinking partner. They provide an outside perspective and unbiased feedback that friends, family, or employees might be unable to offer.
This can reduce the stress and decision fatigue that retail leaders face. For example, an executive can talk through a sensitive issue (like possibly closing a location or handling a conflict with a long-time employee) with their coach to gain clarity and confidence in their decision.
Especially in the tumultuous retail industry, having a coach can improve an executive’s resilience and well-being, making them better leaders for their companies.
In summary, leadership coaching equips retail SMB executives to meet the moment: staying agile amid market upheavals, leading digital change rather than reacting to it, and fostering a strong team in an industry where good people are hard to find and keep.
The following section will illustrate real-world outcomes where coaching has made a tangible difference for businesses and leaders.
Real-World Examples of Leadership Coaching Outcomes
To ground the discussion in reality, let’s examine a few examples and case studies of how leadership or executive coaching has benefited retail or small business leaders.
Brands and names are not presented for confidentiality reasons.
Boosting Sales and Morale at a Retail Company
A mid-sized retail business was struggling with declining sales and low employee morale. The owner engaged a business coach to work with the leadership team. The coach focused on refining the company’s sales strategy and improving the leaders’ communication and team-building skills.
Over a year, the changes were remarkable – the retailer saw a 40% increase in sales and a noticeable lift in team morale and engagement. According to the case report, coaching helped the executives implement clearer sales processes and foster a more positive, supportive environment for store employees.
This translated into better customer service and higher sales. This example underscores that coaching isn’t just about “soft” benefits; it can drive concrete business results.
The coach enabled a turnaround that improved the bottom line and workplace culture by working on leadership behaviors (like how managers set expectations or recognize staff efforts).
Franchise Owners Growing their Skills
Participants reported significant personal and professional growth in a research case study of coaching with small business franchisees.
Six franchise owners underwent a three-month executive coaching program; afterward, they overwhelmingly described the experience as positive and impactful. They identified key competencies they improved through coaching—notably better communication, time management, confidence, mental clarity, and business development skills.
For example, one franchisee learned to delegate and manage time more effectively, resulting in smoother day-to-day operations, while another gained confidence in marketing strategies to grow sales. This study shows that even over a relatively short engagement, coaching can help small business leaders build critical skills that directly affect their business performance.
As these franchise owners discovered, improvements in communication and leadership effectiveness can lead to more cohesive teams and more efficient business processes.
These examples illustrate the transformational power of coaching.
A struggling retailer revived growth and morale; franchise small-business owners enhanced their managerial skillsets with coaching as a catalyst. It’s important to note that the coach did not simply impose a one-size-fits-all solution in each case.
Instead, the coach worked closely with the individuals or leadership teams to identify specific challenges and co-create solutions, whether a new sales strategy or a new way of leading people.
The results—higher sales, better teamwork, and avoided business failure—matter deeply to SMBs.
As one coaching client put it, coaching “is not a mere business fad but a tangible force that can drive significant business transformation,” capable of boosting sales, streamlining operations, building effective leadership, and saving a business from the brink of failure.
For retail executives weighing the value of coaching, these stories offer reassurance that coaching delivers more than “feel good” improvements – it can produce ROI in terms of revenue growth, efficiency gains, and improved retention of both customers and employees.
Congratulations on reading so far.
In the next section, we will look at broader data and statistics that reinforce these individual examples with evidence of how widely leadership coaching is being adopted and the typical outcomes and ROI organizations are seeing.
Data and Statistics on Coaching Adoption, Outcomes, and ROI
Numerous studies and surveys have examined leadership and executive coaching, demonstrating their growing adoption and powerful impact on individuals and organizations.
Below is a compilation of data and statistics that highlight how coaching is being used and the measurable outcomes it delivers:
High Return on Investment (ROI)
Coaching often yields a strong financial return. A global survey by PricewaterhouseCoopers found an average ROI of about 7 times the initial cost of coaching engagements.
Similarly, a landmark study (2011) by MetrixGlobal reported a 788% ROI for executive coaching—in other words, the benefits (in improved productivity, employee retention, etc.) were nearly eight times the cost of coaching. These figures indicate that money spent on coaching frequently comes back multiple-fold in value.
Many companies have validated this: in one report, 87% of executives agreed that executive coaching provides a high ROI for their business.
Majority Recoup Investment
Organizations are confident in coaching’s payoff. In one extensive survey, 86% of companies said they could at least recoup their investment in coaching, with a significant portion reporting far greater returns.
Notably, 19% of those companies saw an astronomical ROI of 50 times the investment, and another 28% realized 10–49 times the return. While those extreme cases aren’t the norm, the median ROI was about 7x, as mentioned.
This explains why even resource-conscious SMBs see coaching as a worthy investment—the odds are that it will pay for itself and then some.
Performance Improvement
Coaching drives tangible performance gains. According to data cited by the International Coaching Federation (ICF), working with a coach can increase an executive’s individual performance by ~70% on average.
It’s not just individual performance that can improve; team performance can improve by ~50%, and organizational outcomes (such as productivity or quality metrics) can improve by nearly 50% due to coaching initiatives. These improvements come from better decision-making, more precise goals, and enhanced leadership behaviors that ripple out to the team and company.
Higher Revenue Growth with Coaching Culture
Organizations that embed coaching into their culture tend to outperform those that don’t. Research indicates that 51% of companies with a strong coaching culture report higher revenues than their industry peers.
This suggests that companies (including smaller ones) broadly embrace coaching – training leaders to coach employees, providing coaching at multiple levels, etc. – to create conditions for better financial performance.
For an SMB retailer, fostering a “coaching culture” (where store managers, for instance, use coaching techniques with front-line staff) could translate into better customer experiences and sales, aligning with what this statistic implies at a larger scale.
Adoption and Growth of Coaching
The use of coaching is growing steadily across industries and company sizes. A few data points illustrate this: As of 2023, 72% of coaches offer virtual coaching services, up from 40% in 2020 – a shift accelerated by the pandemic.
This has made coaching more accessible and affordable, including for SMBs, which helps explain increased adoption. The coaching industry is confident; about 66% of professional coaches are confident that the coaching demand will continue to grow.
Many organizations now include coaching as a standard part of leadership development.
For example, one survey noted that most coaching clients in organizations are mid-to senior-level managers, not just CEOs, indicating that coaching is being democratized and scaled. In small and mid-sized businesses, it’s becoming more common for owners and executives to seek coaches. In contrast, coaching was seen as a luxury a decade ago, mainly for Fortune 500 CEOs.
Employee Engagement and Retention
There is compelling evidence that coaching contributes to a more engaged workforce. In ICF’s research with the Human Capital Institute, 72% of organizations reported a strong correlation between coaching and improved employee engagement.
Additionally, employees themselves recognize the value: In the same study, coaching received high approval ratings from both senior leaders (78% approval) and non-managerial employees (73% approval).
Higher engagement often means lower turnover—a critical benefit in retail, where retention is a challenge.
While exact figures on turnover reduction are case-specific, it’s reasonable to connect the dots: executives who were coached to be better leaders saw their employee retention improve, as reflected in both anecdotes and broader surveys of coaching outcomes.
These statistics collectively paint a clear picture: leadership coaching works.
It helps individual executives perform better and delivers ROI through higher productivity, better team outcomes, and even revenue gains.
For retail SMB executives, who must justify every expense, the data assures that coaching is not an indulgence but a high-impact investment.
When nearly 7 out of 10 executives say the ROI was worthwhile and companies are seeing engagement and performance metrics move in the right direction due to coaching, it validates making coaching part of the leadership toolkit.
To further keep this data in context, it’s worth noting that the ROI of coaching isn’t solely measured in dollars; there are qualitative returns as well – improved decision confidence, reduced stress, stronger leadership bench strength, etc., which are harder to quantify but extremely valuable for an SMB’s long-term health.
However, citing a ~788% ROI or a 7x return on coaching investments speaks volumes about its effectiveness as a business strategy. No wonder a 2024 Training Magazine article remarked: “Coaching isn’t just a feel-good initiative but a critical business strategy with measurable returns.”
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Having established the efficacy and value of coaching through data, we will now explore the current trends shaping how leadership coaching is delivered and experienced, particularly innovations making coaching more accessible and tailored to modern needs.
Current Trends in Leadership Coaching
Leadership coaching continually evolves, and several notable trends are shaping its practice.
These trends make coaching more accessible, tech-enabled, and personalized for retail SMB executives considering or already engaged in it.
Digital and Virtual Coaching
Coaching has undergone a digital transformation. An overwhelming 72% of coaches now offer virtual coaching (via video calls, apps, etc.), compared to only 40% in 2020.
This shift to online coaching, accelerated by the COVID-19 pandemic, has made coaching far more convenient and scalable. Executives no longer need to meet a coach in person; they can connect with top coaches anywhere in the world via Zoom or specialized coaching platforms.
For SMB leaders, especially those outside major urban centers, this has opened up access to quality coaching that was previously out of reach. The benefits of virtual coaching go beyond convenience: it tends to be cost-effective (saving travel costs and time), flexible (sessions can be scheduled around a busy retail executive’s calendar), and can be just as effective as face-to-face coaching.
This trend means more retail SMBs can implement coaching—even for multiple managers—without geographical or logistical barriers. It’s also led to “micro-coaching” options, where an executive might have shorter, more frequent remote touchpoints with a coach, fitting coaching into their workflow.
In summary, embracing digital coaching makes coaching a standard, easily integrated part of leadership development rather than a special event.
Group and Team Coaching
Traditionally, coaching is one-on-one, but there is growing interest in group coaching and team coaching formats.
In group coaching, a coach works together with a small cohort of leaders.
In team coaching, the coach facilitates the development of an intact team (for example, a retail district manager and their store managers as a team).
According to a recent global survey of coaching trends, coaching buyers (organizations) increasingly consider group and team coaching to expand coaching’s impact.
Group coaching can be particularly relevant for SMBs because it is cost-efficient—one coach’s time helps multiple people—and it builds peer support.
For instance, several department heads in a retail company might engage in group coaching sessions to collectively discuss leadership challenges (like improving inter-department coordination or implementing a new POS system) under the coach’s guidance.
This creates a sense of shared learning and accountability among the group.
On the other hand, team coaching can help improve the dynamics and performance of a leadership team as a whole, ensuring they align on vision and collaborate effectively.
The trend toward these formats indicates a realization that leadership does not happen in isolation; developing collaborative leadership capacity can multiply the benefits.
Moreover, group coaching can help democratize access to coaching. Rather than paying for five separate coaching engagements, an SMB might pay for one group coach to work with five managers together. The democratization of coaching (making it available beyond the C-suite) is seen as a strategic imperative, and group coaching is one avenue to achieve that.
We can also expect more hybrid approaches, such as a few one-on-one sessions complemented by periodic group sessions, blending individual focus with team learning.
AI Integration and Coaching Technology
Perhaps the most buzzworthy trend is the introduction of Artificial Intelligence (AI) into coaching.
While coaching is fundamentally a human-centric, trust-based activity, AI is beginning to augment the coaching process in various ways.
Coaches and organizations are experimenting with AI-driven tools to support or enhance coaching. AI can also help analyze coaching session transcripts (with client permission) to identify themes or emotional cues that a coach can use to serve the client better.
There are even AI chatbots being developed to offer on-the-spot coaching tips or simulations—think of a chatbot that can role-play a difficult conversation so a leader can practice between sessions.
Surveys show mixed attitudes about AI in coaching: about 45% of coaches expect AI will be used to augment coaching practices, though some also fear partial “replacement” of coaching by AI for basic tasks.
In our opinion, a human adds different values to active listening and emotional intelligence. It is not mere algorithms but feeling and perceiving the client as a whole, not as responses.
But, yes, A.I. can be helpful. In practice, if a retail executive gets promoted, the system’s AI might immediately suggest relevant coaching or learning modules for the new role and alert their human coach about likely areas to focus on.
The scalability and personalization AI offers are key – AI can crunch data from across an organization to show the impact of coaching or ensure that each coachee gets content tailored to their needs between sessions.
Another futuristic element is experimenting with Virtual Reality (VR) for coaching scenarios.
While still early, we might soon see VR role-play for practicing public speaking or customer interactions as part of a coaching engagement.
Overall, AI is emerging as an assistant rather than a replacement in coaching. It automates scheduling, provides data insights, and suggests resources, thereby freeing human coaches to focus on empathy, creativity, and contextual judgment that only humans can deliver.
For SMB leaders, these tech integrations could mean more affordable and data-driven coaching, as AI helps reduce costs and measure impact.
Personalized and Evidence-Based Development
There is a strong trend toward personalization and evidence-based practices in coaching.
Modern leadership coaching is increasingly tailored to a leader’s goals, personality, learning style, and background. Coaches are drawing on a rich arsenal of tools – from neuroscience insights to psychometric assessments – to customize their approach for each client.
For instance, if an SMB executive’s 360 feedback doesn’t show improvement in “delegation ” after a few months, the coach and client might pivot to new techniques or spend more time on that issue.
Coaching is also more integrated with other learning and development initiatives now.
A trend is to include coaching as one component of leadership development programs. For example, a retail company might run a leadership training workshop and then follow it up with one-on-one coaching for attendees to personalize the application of that training.
This blend ensures that generic training content is translated into individualized action through coaching.
Additionally, coaching aligns with broader organizational goals and values. There’s an emphasis on coaching for diversity and inclusion (e.g., coaches helping leaders become more inclusive and culturally competent) and for corporate social responsibility aspects, which shows coaching’s evolution to cover operational leadership and leadership in ethics and culture.
In short, the trend is that coaching is becoming highly customized and backed by data about what works – a far cry from any cookie-cutter approach.
SMB leaders engaging in coaching today can expect a program uniquely tailored to them, responsive to honest feedback and results rather than a fixed curriculum.
Coaching for All Levels (Democratization)
Finally, a noteworthy trend is the widening reach of coaching.
Once considered a perk for C-suite executives, coaching is now being offered to managers at various levels, high-potential employees, and even frontline supervisors in some cases.
This democratization is driven by the availability of cost-effective coaching methods (like group coaching and digital platforms) and by the recognition of the value of coaching cultures.
As mentioned earlier, many organizations report that mid-level managers are the most common recipients of coaching now, and most companies plan to increase their investment in coaching shortly (2024 onwards).
In SMBs, this might manifest as the CEO having a coach and perhaps a key store manager or the head of e-commerce receiving coaching to grow into larger roles.
Some progressive small companies are even training their entire leadership team in coaching skills, effectively multiplying the benefit by having leaders coach their teams.
This trend includes the emphasis on a “coaching style” of leadership—where managers use listening and questioning techniques with their staff. Retailers, in particular, are adopting coaching conversations to develop front-line employees and improve customer-facing performance.
The cultural shift is that coaching is seen less as remedial or elite and more as a standard practice for continuous improvement and talent development at all levels.
In summary, leadership coaching embraces technology, expanding formats, and scaling access while keeping the human-centered core intact.
For retail SMB executives, these trends mean coaching is more accessible, flexible, and results-oriented than ever.
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These trends are likely to evolve further as we look ahead. In the next section, we’ll take a forward-thinking outlook on leadership coaching in the next 3–5 years, especially regarding SMBs in the retail sector.
The Next 3–5 Years: The Future of Leadership Coaching for Retail SMBs
Leadership coaching is poised to become even more integral to how small and mid-sized retail businesses develop their leaders and navigate change.
Coaching Will Become a Standard Practice for SMB Leadership Development
We can expect coaching to move from a “nice-to-have” to a must-have in the toolkit of SMB leadership development.
As awareness of coaching’s benefits grows and costs come down through digital delivery, more small and mid-sized retailers will incorporate coaching for their key people.
It’s conceivable that in 3–5 years, even tiny retail businesses (with, say, 20-50 employees) will consider periodic coaching for the owner or store manager as a normal business expense, much like accounting or marketing services.
The stigma that coaching is only for large enterprises will fade. Industry confidence supports this trajectory—surveys show that over 65% of coaches are confident in industry growth, and a large share of organizations plan increased coaching investments yearly.
For retail SMBs, which often operate on thin margins, the emphasis will be on ROI-driven coaching engagements – short, focused coaching that targets specific outcomes (e.g., improving online sales conversion by developing a more effective e-commerce strategy through coaching).
As ROI data continues to impress (with median returns around 600-700%, even skeptical business owners will see coaching as a strategic investment with quick payback.
We may see more local business networks or chambers of commerce facilitating group coaching programs for small business owners in a community, further mainstreaming it at the SMB level.
Hyper-Personalization Powered by Data and AI
In the coming years, AI and data analytics will likely deepen their influence on coaching, resulting in hyper-personalized coaching experiences.
For retail executives, this means coaching will be even more tailored to the unique challenges of retail.
Coaches might use AI tools that aggregate retail industry benchmarks or the executive’s business performance data to pinpoint development areas.
For instance, an AI tool could show a retail CEO that their employee engagement scores dip during holiday season chaos, prompting the coach to work on the CEO’s stress management and delegation.
We may see AI-driven 360-degree feedback in real-time, where employees can provide quick, anonymous feedback via apps, and AI summarizes it for the coachee and coach to address immediately.
AI “co-coaches” or assistants might become common. These could be chatbots that leaders can consult for instant coaching tips between human sessions (for example, typing “I have to handle an irate customer complaint” and getting AI-guided steps or questions to consider).
Human coaches will still lead the relationship, armed with richer data and insights.
The result is coaching that adapts in the moment to the leader’s development journey.
If an SMB executive suddenly faces a crisis (like a supply chain breakdown), their coach – aided by tech – can adjust the coaching focus quickly, perhaps using scenario modeling tools to help the leader practice their crisis response.
In 3–5 years, what might this look like?
Possibly a seamless integration where a leader has a coaching dashboard: it shows their goals, key behavior metrics, progress over time, and suggestions (some generated by AI, some by the coach) on the next steps.
This ensures no two coaching engagements are alike; each is as unique as the individual, backed by quantifiable metrics to show progress.
Greater Emphasis on Measurable Outcomes and ROI
As coaching becomes more embedded in SMBs, there will be increased pressure to demonstrate its impact concretely.
We expect to see more robust methods for measuring coaching outcomes in place.
This could involve setting up clear KPIs at the start of a coaching engagement – e.g., “increase Q4 sales by 15%” or “reduce staff turnover by half in one year” – and tracking these alongside qualitative changes (like improved leadership confidence).
Coaching providers will likely offer ROI calculators and dashboards (some already do) to translate behavioral changes into business value.
For example, a dashboard might calculate the dollars saved in hiring and training if a retail manager’s improved leadership (thanks to coaching) leads to 10% higher employee retention.
This focus on metrics will help SMBs justify ongoing coaching programs.
Additionally, success stories from peers will proliferate – one can imagine, by 2028, numerous case studies and local examples of “Coaching helped this boutique chain grow from 3 to 10 stores” or “After coaching, this family-owned shop saw a 20% profit increase.” These stories, backed by data, will make other SMBs more comfortable investing in coaching.
Essentially, the narrative will shift from “Can we afford a coach?” to “Can we afford not to have coaching, given the proven returns?”.
Integration of Coaching with Day-to-Day Work (“Coaching in the Flow”)
The next few years will likely blur the lines between formal coaching sessions and everyday leadership activities.
We anticipate more integrated coaching, where coaching inputs are woven into a leader’s daily workflow.
For example, a retail SMB executive might use a digital assistant that provides brief coaching tips or reflection prompts at the start or end of each day.
If the executive has a big team meeting coming up, the system (in tandem with their coach) might push a reminder of things they’ve worked on (e.g., “Remember to practice active listening in today’s team meeting”).
In a few years, it will be shared that coaching doesn’t feel like a separate activity on one’s calendar; instead, micro-coaching moments and digital nudges will make development a continuous thread.
These bite-sized integrations will be valuable for retail leaders whose days on the store floor or in operations can be hectic.
You don’t have to wait for your next monthly coaching call to address an issue – support is more on-demand.
We may also see growth in peer coaching circles facilitated by technology. Retail SMB executives might periodically meet in a virtual group (with or without a professional coach moderating) to coach each other, share advice, and hold each other accountable.
This creates a culture where coaching is not just top-down (coach to coachee) but multidirectional, continuously reinforcing learning.
Specialization of Coaches for SMB Retail Challenges
As the coaching industry grows, coaches are increasingly specializing in particular niches.
We expect a rise in coaches who explicitly focus on small business leadership and, even more specifically, on retail sector challenges.
These coaches will combine coaching skills with a subject-matter understanding of retail trends, customer experience, and SMB constraints.
The benefit of this specialization is that the coach can more quickly relate to context (e.g., seasonal demand swings, franchise vs. independent issues, etc.) and use relevant language.
However, they will still coach rather than consult.
We might also see coaching packages geared to everyday SMB retail needs—for instance, a “Digital Transformation Coaching Sprint” where, over three months, a coach helps a retail owner develop and execute a plan to take their store online.
Or a “Next-Generation Leader Coaching” for a small business transitioning to new ownership (common in family businesses).
With specialized offerings, SMBs can pick coaching solutions that fit their exact scenario, making coaching even more efficient and targeted.
Yet, here is an important note: When you get into the depths of coaching, there are no actual niches. Coaching’s very essence is formless and labeless.
Enhanced Coaching Skills in Leaders Themselves
As coaching culture permeates organizations, the next few years will also see more leaders trained in coaching skills.
This means a retail SMB executive who has been coached will often turn around and apply a coaching approach with their team – effectively becoming a coach-like leader.
We can foresee that by 2025-2026, a significant number of small businesses will encourage their managers to undergo basic coach training (not to replace professional coaches, but to embed those skills internally).
The payoff is a more supportive and development-focused work environment.
This could translate to store managers regularly having coaching conversations with sales associates to help them improve rather than only conducting annual reviews or directive supervision.
The ripple effect is a workforce that is more engaged and continually developing. Some studies already show that companies with coaching cultures outperform others, and this will likely push even SMBs to want that cultural advantage.
Coaching will evolve from an external intervention to an internal capability within many retail SMBs.
In conclusion, the next 3–5 years will likely see leadership coaching more deeply woven into the fabric of SMB leadership and the retail industry.
It will be tech-augmented, widely accessible, highly personalized, and tightly aligned with business outcomes. Retail SMB executives will have at their disposal resources that were once available only to large companies: a personal leadership coach (or maybe a team of them via a platform), real-time developmental feedback, and a network of peers for support – all oriented towards making their businesses more agile, customer-centric, and successful.
As market demands evolve and new challenges arise, leadership coaching will be a dynamic tool that grows in tandem, helping retail leaders not just react to the future but actively create a better future for their businesses.
So What’s Next?
Leadership coaching has proven itself as a powerful driver of personal and organizational growth.
For executives in small to mid-sized retail businesses, it offers a tailored, results-oriented way to sharpen leadership abilities amid a rapidly changing environment.
Unlike one-size-fits-all training or outside consulting, coaching provides a personalized development journey that builds the mindset and skills needed to lead through complexity, engage employees, and delight customers.
We’ve clarified how coaching differs from mentoring, consulting, and training: it is a unique practice of facilitating a leader’s learning and solutions rather than providing answers or general instruction.
We’ve seen how coaching engagements work – through regular, focused conversations that turn insight into action – and why they are especially relevant for retail SMBs facing digital disruption and workforce hurdles.
Real-world cases and statistics reinforce that coaching isn’t an abstract theory; it yields tangible improvements in sales, retention, productivity, and more, often delivering many times the investment in value.
As the retail industry transforms, coaching will adapt—becoming more digital, group-oriented, augmented by AI, and pervasive at all organizational levels.
In the coming years, a retail SMB executive might experience coaching not as a scheduled meeting in the calendar but as an ongoing development continuum, with timely support always at hand and measurable progress to show for it.
The outlook is that coaching will help retail SMB leaders stay ahead of the curve—more prepared to innovate, turn challenges into opportunities, and cultivate high-performing teams even in uncertain times.
In summary, leadership coaching emerges from this report not only as a concept defined and explained, but as a proven strategy and evolving practice.
It is educational and transformational, equipping retail executives with the clarity, adaptability, and leadership capacity needed to thrive in today’s market and in the future that is yet to unfold.
Give us a call.
