GPG Report in Retail design - Front cover image

Source: DiR

Retail has once again performed better than the wider market, according to gender pay gap data

Key retailers have reported progress towards closing the gender pay gap despite Covid-19 challenges that affected the female workforce “disproportionately”.

According to a new report by PwC and Diversity in Retail, whose founding members include Sainsbury’s and the John Lewis Partnership, the mean pay gap in retail dropped from 13.1% in 2018/19 to 11.8% in 2020/21.

A higher proportion of companies reporting a pay gap reduction between –15% and –10% meant that retail has performed better when compared with the wider market last year.

The report highlighted the different ways in which retailers addressed gender pay gap disparities in the past 12 months, including updating policies, introducing female progression development programmes, prioritising family-friendly and flexible working, focusing on diverse talent attraction and fostering inclusive cultures.

But PwC said that, in light of the pandemic’s impact on the female workforce, it was vital for companies to share data in order to tackle the issue.

“It is reassuring to see the gender pay gap in the retail sector continue to decrease, especially given it is a sector with lower pay gaps than the rest of the market,” said inclusion and diversity consulting senior manager Jason Buwanabala.

“However, it is critical for companies to continue making progress and sharing narratives around reducing their gender pay gap, especially given the disproportionate impact on women of the pandemic, which saw female workers lose jobs more frequently and being more likely to take on additional childcare responsibilities.”

gender pay gap

Source: PwC/DiR

PwC data showed companies within retail have some of the lowest pay gaps in the market

Read more: Retail has some of the lowest gender pay gap numbers so far this year, report shows

Retail is typically less prone to see pay gap data shift dramatically comparatively to other sectors due to its consistent reporting as well as its large and stable workforces, as it would require a substantial shift in employee numbers for it to move significantly.

PwC has compared last year’s numbers with pre-pandemic data as gender pay gap reporting was paused during Covid, with last year’s deadline also being delayed by six months.

The number of companies that reported for 2020/21 by the 5 October deadline was nearly three quarters of those that had reported in 2018/19.

The chair of Diversity in Retail, Tea Colaianni, said that while not all businesses published their D&I efforts, it was still “inspiring” to see the progress from those who did – particularly as UK legislation does not currently mandate organisations to have action plans to address gender pay gap disparities.

“It’s clear that the retail industry as a whole recognises how important a diverse workplace is for business to both grow and attract talent,” she added.

Earlier this year, research from IGD also showed that the industry has made progress across different D&I areas, including female representation in leadership roles.

This year’s gender pay gap April reporting deadline is expected to go ahead as normal.