A strong commitment to diversity and inclusion (D&I) brings proven benefits to any business, particularly when we take a closer look at the current UK retail market.
In recent years, data from Glassdoor showed 1 in 3 people will not apply for a position at a company that lacks diversity. It is especially crucial to be mindful of figures such as this when hiring in the retail sector, where competition for staff – and their turnover rate – is significantly high.
In 2022, 31% of Gen Z workers surveyed (aged 16 to 24) stated they were actively choosing employers that prioritised diversity and inclusion. In comparison, just 19% of Millennials placed it as a priority. Data such as this demonstrates the rising importance of D&I when attracting and retaining the next generation of workers.
Despite this, in a 2023 report by the global leadership consulting firm, DDI, they found that leaders’ support for their company’s overall diversity and inclusion efforts had declined by 18%. Stephanie Neal, Director of the Center for Analytics and Behavioral Research, identified economic uncertainty and labour challenges as two stressors diverting attention away from these efforts.
The ongoing cost of living crisis is hitting retailers hard as consumers become more cost-conscious. Consequently, there are growing concerns that D&I efforts are being deprioritised, despite their proven benefits in employee attraction and retention and business performance overall.
Below we’ll explore data on the current status of diversity and inclusion in UK retail, with strategies to strengthen D&I efforts in today’s economic climate.
The current state of diversity and inclusion in retail
MBS Intelligence and the British Retail Consortium have asserted that diversity and inclusion remains a key focus for many larger retail businesses. In their 2024 report, ‘Tracking progress on diversity and inclusion in UK retail’ they reaffirmed:
“At a time when budgets are under more pressure than ever, it would be easy to see Diversity and Inclusion as an easy place to make cuts. Yet we see retailers remaining hyper-focused on achieving a truly equitable playing field, and treating D&I as a priority.”
While some D&I initiatives are making tangible, positive progress, there are still other areas in need of improvement. Using data from this report, we’ll explore some notable achievements and challenges.
Representation of retail workers with disabilities
In 2024, the identification of retail leaders with disabilities has reportedly dropped from 17% in 2023 to 11%. However, the report highlighted that this decline may have stemmed from differing interpretations of what qualifies as a disability. Despite highlighting “a lack of disabled role models in UK retail,” representation seems to have increased at all levels.
In middle-management, representation rose to 11.5% (from 7.2% in 2023). At board-level, it doubled to 9.5%. In tandem, 13.8% of retail employees reported having a disability (up from 6.0% in 2023).
This aligns with data gathered by the UK parliament and is likely the result of increased awareness of disabilities like autism and ADHD. Encouragingly, 81% of retailers include disability in their D&I strategy.
Racial and ethnic representation in senior retail roles
There has been a promising rise in ethnic minority leaders in retail (from 10% to 12%). Since the first report by MBS and the BRC, this figure has almost tripled from 4.5% in 2021. However, 35% of retailers still had no ethnic diversity on their Board.
Representation in executive committees declined 0.2% (from 9.1% to 8.9%) between 2023 and 2024, and over half of retailers were reported to have no diversity at this level. Similarly, for those at direct reporting level, representation decreased from 11.3% in 2023 to 10.3% in 2024.
While these decreases are discouraging, it’s important to highlight that racial and ethnic leadership has tripled in the last three years; so positive steps have been taken and further change is achievable.
Representation of LGBTQ+ workers in retail
Interestingly, the ratio of LGBTQ+ representation in retail is notably higher than in the wider UK population.
As of 2024, 67% of retailers have at least one LGBTQ+ senior leader. 8.3% of the retail workforce identifies as LGBTQ+, compared to 4.3% of the populace reported by the Office for National Statistics (ONS). Representation among shop floor workers (8.4%) is only slightly higher than in head office roles (7.7%), suggesting an almost even playing field when it comes to D&I.
There has also been an increased momentum on LGBTQ+ inclusion in retail; particularly with initiatives supporting trans and non-binary colleagues. It also highlighted “growing bisexual representation across store and head office roles.”
Retail recruitment to aid diversity and inclusion
While several of these points provide a positive outlook for future D&I in retail, it’s key that this becomes true for all protected groups. As stated by Helen Dickinson OBE, chief executive of the British Retail Consortium, “the progress on diversity will only be meaningful when it happens in tandem with creating a workforce where every employee feels included and valued.”
Diversity and equal representation often begin at the hiring stage, therefore it’s vital to approach this responsibly. In a bid to improve the diversity of their companies, employers can mistakenly find themselves using a performative, box-ticking approach. This qualifies as positive discrimination, which is not only illegal, but also leaves candidates feeling tokenised.
One effective way to enhance inclusivity and reduce unconscious bias in retail head office hiring is by using anonymous CVs. By removing details like photos, names, location, and place of education, businesses can focus solely on a candidate’s skills and experience. This approach helps diversify teams by eliminating biases related to age, race, ethnicity, gender, background and institutions.
Moreover, our consultants can help with the standardised interview and assessment process, ensuring fair evaluations that focus on merit and reduce unconscious bias.
Finally, candidates actively working with our specialists, informing us of specific needs enables us to make reasonable adjustments, only recommending roles that align with those needs. For example, arranging interview times around school pickups and putting them forward for roles which offer flexible hours. For conditions that commonly affect sleep, such as ADHD, a reasonable adjustment can include arranging interviews for later in the day.
Work with Distinct
At Distinct, we strive to stay informed on the latest retail news and what it means for the world of work. If you’re searching for your next retail head office job or looking to hire talented head office professionals, contact us today.
