When the management engages in a quantitative and mechanical approach in managing people in stores, labour turnover increases. Gradually it has been recognized that allowing the store managers discretion in dealing with the problems can reduce the turnover. If the firms invest in developing the employees, it can lead to increased motivation and turnover.Tesco is the UK’s largest retailer employing over 470,000 people across 14 countries (O’Reilly, 2009). They employ blind graduates and they have new-look staff rooms designed by the Tesco staff themselves. They believe in Treat people how we like to be treated. The management focuses on teamwork, trust, respect, listening, supporting and simple gestures like saying thank you are considered important. They encourage sharing knowledge and experience. The senior managers are encouraged to be on the shop floor and spend time with the employees, to get a first-hand feel of their problems and concerns. The organization values workforce diversity and one in five people are over the age of fifty. In fact, they have people from the age of 16 to over 70 amongst their employees.Employee motivation is the key to low labour turnover, high productivity, and high level of customer satisfaction. Quality service is a major challenge in the retail sector. Job satisfaction, productivity and motivation are interrelated issues. Motivation is required at all levels within an organization and the happy feeling or motivation that employee experience is task-related. Hence it is not merely the pay factor that is the motivator.An internal communication study was conducted at Tesco, the UK in 1985 which revealed that staff behavioural issues were having a negative influence on the company’s efforts in the supermarket-battle for customers (Tuffrey, 2003). Tesco had taken immediate corrective steps and empowered the staff to address customer problems quickly and directly by removing the lengthy customer service procedures and hierarchies.