Recent findings reveal significant diversity challenges within the UK retail sector.
- Research indicates that over 35% of retailers have exclusively white boards.
- Ethnic diversity remains lacking, particularly in executive committees.
- Although there have been improvements, progress in inclusivity is inconsistent.
- A coordinated effort towards diversity and inclusion is evident, yet more work is needed.
The recent study by the British Retail Consortium (BRC) and MBS Group highlights ongoing diversity issues in the UK retail sector. Key findings show that more than a third of retailers, primarily smaller companies, continue to have an ‘all-white board.’ This reflects the ongoing lack of ethnic diversity within these senior teams.
The investigation relied on 53 BRC survey responses and 200 interviews with senior leaders. Notably, more than half of the surveyed companies reported no ethnic diversity on their executive committees. Despite these concerning statistics, there has been a significant increase in ethnic minority representation on boards, rising from 4.5% in 2021 to 12% in 2024.
Helen Dickinson, the BRC’s chief executive, stressed the importance of cracking the ‘inclusion nut.’ The study assessed various diversity aspects, including gender, ethnicity, disability, sexual orientation, social mobility, and age across the entire retail industry, though it did not specifically focus on fashion retail.
Complementing this, Drapers’ separate annual investigation into racism in fashion retail revealed that 55.7% of respondents had experienced or witnessed racism at work, a slight decrease from the previous year.
A striking 98% of retailers now have a diversity and inclusion (D&I) strategy in place. Elliott Goldstein from the MBS Group highlighted this progress, yet acknowledged the necessity for broader diversity efforts throughout workplaces. He noted the shift in prioritising D&I as a ‘core priority’ compared to years past.
However, the BRC and MBS report also pointed out that diversity advancements are not uniformly widespread. Smaller companies, in particular, appear to deprioritise D&I amidst financial pressures.
The study shed light on gender diversity as well, revealing an increase in female board-level leaders from 32.6% in 2021 to 42.3% in 2024. Nevertheless, men continue to dominate senior executive roles.
Additional findings showed that 11% of retailers have at least one disabled senior leader, 67% have an LGBTQ+ senior leader, and 70% have a leader who demonstrates social mobility. These statistics underline the varied landscape of inclusion within retail leadership.
Despite these efforts, the sense of inclusion among retail workers remains low, particularly among those identifying as black, African, Caribbean, or within specific age groups such as 24 to 34. Helen Dickinson asserted that meaningful diversity progress must ensure all employees feel both happy and included.
The journey towards diversity and inclusion in UK retail leadership continues, requiring sustained efforts and commitment.
