We propose that a trust climate will help the employee–customer interface in the retail context. Specifically, we argue that a work climate that is based on trust induces the exercise of discretion by retail managers and discretionary behavior by front-line staff. Managerial and staff discretion is necessary for retail stores to become locally responsive, as store responsiveness is linked to customer satisfaction. Our propositions are derived from interpersonal trust and social exchange theories. The use of a trust climate to analyse the antecedents of customer satisfaction offers another theoretical perspective to study the interface dynamics between employees and customers and thus this paper contributes to ‘linkage research.’