A significant proportion of retail boards remain predominantly white, highlighting persistent diversity issues.
New research by the British Retail Consortium indicates a lack of ethnic diversity at senior levels, despite strategic initiatives.
Lack of Diversity in Retail Boards
The recent findings by the British Retail Consortium (BRC) reveal troubling statistics about diversity within the retail sector. Over 35% of retailers maintain an “all-white board”, exhibiting a significant lack of ethnic diversity. This situation is even more pronounced as more than half of the companies display no ethnic diversity in their executive committees. This trend has persisted despite previous reports highlighting similar issues, indicating a sluggish pace in fostering a more inclusive environment.
Gradual Changes in Board Composition
Encouragingly, there has been a notable improvement in the representation of ethnic minorities on boards, with their presence nearly tripling from 4.5% in 2021 to 12% in 2024. This change, while positive, highlights the slow but steady path towards a more diverse leadership.
Helen Dickinson, chief executive of the BRC, acknowledged that “inclusion is the nut the industry still needs to crack.” The findings bring attention to the necessity for clearer and more proactive strategies aimed at establishing comprehensive diversity across all levels of leadership.
Current State of Diversity and Inclusion Strategy
According to the BRC study, an impressive 98% of retailers now have a co-ordinated diversity and inclusion (D&I) strategy in place. However, despite these strategies, the tangible impact on senior management remains limited.
Elliott Goldstein, managing partner at The MBS Group, commented on the progress, saying, “great progress” has been made. Yet, he emphasises there is substantial work remaining concerning diversity throughout the workplace.
The survey revealed that the implementation of D&I as a priority is widespread, offering a stark contrast to the state of affairs four years ago when such considerations were not at the forefront of company agendas.
Barriers Faced by Smaller Retailers
The report indicates that smaller companies, in particular, struggle with implementing effective diversity initiatives due to a challenging commercial environment. These firms often deprioritise diversity efforts, risking long-term setbacks in inclusivity.
The report from the BRC and MBS, entitled “Tracking Progress on Diversity and Inclusion in UK Retail,” warns of the potential risks associated with smaller retailers neglecting D&I strategies. They suggest that ethnic diversity is often sidelined amid immediate business pressures.
Gender Imbalance in Retail Leadership
Despite some progress, a gender imbalance persists, notably at the higher echelons of retail leadership. While female representation on boards has increased from 32.6% in 2021 to 42.3% in 2024, men still dominate senior management roles.
Drapers’ research revealed similar trends, with 37% of board roles in fashion retail businesses being held by women in February 2024. This marks an improvement, yet illustrates an ongoing disparity in gender representation at the highest levels.
Underrepresentation of Minority Groups
Retailers have made strides in terms of LGBTQ+ representation and social mobility. Approximately 67% of retailers have at least one LGBTQ+ senior leader, and 70% report having senior leaders exemplifying social mobility.
However, feelings of inclusion remain low, particularly among certain groups. The BRC survey indicates that perceptions of inclusion are least positive among employees identifying as black, African, or Caribbean, and among those aged 24 to 34.
These insights underscore the necessity for further initiatives aimed at cultivating an inclusive atmosphere within retail workplaces, where every individual feels valued and integrated.
Conclusion of BRC Study
Ultimately, the BRC’s study underscores the imperative for transformative action in enhancing diversity and inclusion within the retail sector. The progress achieved thus far, while commendable, necessitates reinforcement through sustained commitment and strategic initiatives.
Helen Dickinson of the BRC aptly noted, “The progress made on diversity will only be meaningful and effective when it happens in tandem with a workforce where every employee feels happy and included.”
While strides have been made, the retail industry must intensify its diversity efforts.
Inclusion and representation remain crucial goals for fostering an equitable retail environment.
