business women meeting

Board-level gender diversity in retail is still beneath the FTSE 250 benchmark

Having a diverse and inclusive workplace isn’t just good ethics, it’s good business.

We know this. Retailers know this. Our recent report with The MBS Group shows this – with nearly all retail businesses surveyed having some form of D&I strategy in place.

Our challenge now is to shift gear to drive the changes that will make most meaningful differences in our industry.

Small shifts are happening in some areas – albeit slowly. So we must acknowledge what is working so far and celebrate this progress.

Board-level ethnic minority representation has more than doubled in just two years – from 4.5% in 2021, to 10% this year. Board-level gender diversity has improved by five percentage points, from 32.6% to 37.8%. When asked how progress has been achieved, retailers cited newly appointed D&I leaders, heavy investment in training, and employee-led resource groups.

Retailers are also widening the scope of their D&I strategies to include other diversity characteristics. Many now include social mobility and disability, which were much less common even last year.

But we cannot get ahead of ourselves because significant challenges remain. Almost 30% of retail boardrooms are all white, and board-level gender diversity is still beneath the FTSE 250 benchmark. There is a lack of black leaders, and disabled leaders are even fewer and farther between, with a mere 17% of retailers being able to identify a disabled leader in their business.

Certain groups, particularly those who are disabled and those who describe their sexual orientation as “other” – report feeling more marginalised and unhappy in the workplace. This might be explained by the lack of targeted initiatives for these groups. So, greater focus is needed.

There are many barriers when it comes to improving D&I. The sensitive nature of some data makes it hard to collect. There is a constant challenge for resources, particularly at a time when battling inflation is a primary concern. And retailers can also fear a potential backlash from other employees.

But identifying these hurdles is the first step to creating solutions. Identifying shortfalls is how we create opportunities. We must not be disheartened by slow progress. We must double down on what’s working and persevere.

We launched our Diversity and Inclusion Charter in 2021. It looks at oversight, recruitment, progression, reporting, inclusivity and responsibility. So far, over 80 retailers have signed up. That’s 80 large retailers working together to better our industry and ensure that every individual, no matter their background, can achieve their potential in the workplace.

That’s 80 retailers sharing insights, data, what works, what doesn’t work. 80 retailers learning from one another, challenging each other, and challenging the ingrained biases we have become accustomed to.

Ever since then, our annual report with The MBS Group has served, and will continue to serve, to hold the industry to account and ensure that instead of becoming a tick-box exercise, D&I is placed at the soul of every business in every sector of retail.

Of course, it is impossible to overturn embedded societal structures and associated inequalities overnight – and it will take years, and a concerted effort, before we see a truly fair representation of society in our workplace.

But I know that by working together, leaning on each other, reflecting on the failures, tracking progress, and celebrating wins, we’ll get to where we want to be, and we’ll shift that dial.