The retail industry has achieved gender parity in the boardroom, according to the latest ‘Tracking progress on diversity and inclusion in UK retail’ report from the British Retail Consortium and The MBS Group published today (June 24).
But while representation at the top is improving, rising employment costs and a growing youth employment crisis risk undermining pathways into work that have helped make retail one of the UK's most inclusive employers.
Findings show significant progress across senior leadership over the past five years. Women now hold half of boardroom positions, up from a third in 2021.
Representation of ethnic minority leaders, disabled colleagues and people from less advantaged backgrounds has also increased, while more retailers are broadening their focus beyond gender and ethnicity to include disability, neurodiversity, social mobility and menopause.
The report shows that retail’s investment in Diversity and inclusion (D&I) is starting to pay off. The BRC Diversity & Inclusion Charter, launched in 2021, is now supported by 85 retailers committed to creating workplaces where everyone can thrive.
The report also highlights a shift in how retailers approach D&I. The emphasis is moving beyond targets, towards continually improving belonging, wellbeing and inclusive workplace cultures. Responsibility for the agenda is also extending beyond HR teams, with CEO sponsorship steadily increasing as leaders recognise inclusion as a core business priority.
However, the report also highlights growing concerns about the pipeline of future talent. While diversity at the most senior levels has improved, representation across Executive Committees and their direct reports has declined in some areas as hiring slows and organisations restructure, putting pressure on the future leadership pipeline. Employees are being promoted but not replaced reduces opportunities for those coming through the ranks.
Findings come against a backdrop of more than one million young people being not in education, employment or training (NEET). Many face a cluster of barriers including economic disadvantage, caring responsibilities, disability, neurodiversity and poor mental health. As a result, access to work is increasingly becoming an inclusion issue as much as an economic one.
Retail has long played an important role in social mobility, offering local, flexible and accessible jobs that provide a first step into employment and progression based on skills and potential rather than background. But if entry-level opportunities continue to be eroded by rising employment costs, growing complexity and government policy, those facing the greatest barriers to work will be the first to lose out.
The findings underline why retailers must continue investing in D&I initiatives that support opportunity and progression. Government must also ensure employment and skills reforms support, rather than discourage, entry-level recruitment and progression, while bringing down the cost of employing young people so businesses can create more opportunities.
Helen Dickinson, Chief Executive of the BRC, said: "Access to work risks being the biggest inclusion challenge facing the UK today. More than one million young people are outside education, employment or training, with many facing a cluster of barriers including economic disadvantage, disability, neurodiversity, caring responsibilities and poor mental health.
"Retail has long helped break down those barriers through accessible, flexible jobs that provide a first step into work and a pathway to progression.
"While retailers continue to make progress on diversity and inclusion, rising employment costs and increasing complexity are putting those entry-level opportunities at risk. Inclusion is not just about who reaches the boardroom - it is also about who gets the chance to enter the workforce in the first place.
"Retailers remain committed to creating workplaces where anyone regardless of background can belong and thrive, but government must ensure its policies support, rather than discourage, the creation of those opportunities."
Moira Benigson, Founder of The MBS Group, said: “For the sixth year, MBS is proud to have partnered with the BRC to continue to move the dial on diversity and inclusion in the retail industry.
"Although we have seen real progress since our research began in 2021 – women at board level has now reached parity which is a huge milestone – ethnic diversity in leadership is still falling behind.
"Although other areas, such as LGBTQ+, have seen positive improvement, retailers must continue to drive forward initiatives and commit to creating work environments that are truly inclusive to ensure momentum