It is well established that a core principle of successful retailing is knowing and understanding your customer and delivering a proposition that reflects their vision and values. As Irish retailers invest significant resources in developing sophisticated omnichannel and loyalty programmes, the assessment of their customer base is becoming ever more granular – allowing them to create multiple sample personae based on age, family status, disposable income and location.
After celebrating International Women’s Day 2023 last week, Irish retailers need to take a step back and reflect upon the fact that 75 per cent to 80 per cent of all shopping decisions are made by women. Leaders within the Irish retail sector need to challenge themselves – do the senior management team and group of strategic decisionmakers of our business appropriately reflect our core customer from a gender perspective?
Recent data issued by LinkedIn as part of the World Economic Forum’s 2022 Gender Gap Report demonstrated that the biggest disparity, across a range of sectors, between overall female representation and representation in leadership roles was in the retail sector: 51 per cent of all retail positions were held by women while female leadership stood at only 32 per cent. This is not an issue exclusive to Ireland – similar statistics have also emerged from the UK, EU and Australia. In recent years, Irish retailers have demonstrated agility and innovation in meeting their customers’ expectations linked to Covid-19, Brexit and accelerated online transformation – this mindset is now required to proactively deliver improved gender diversity within their own leadership teams. What are the next steps in this regard?
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Covid-19 was a catalyst worldwide for an increased awareness in ESG (environmental, social, governance) and a broader recognition of the need for corporate social responsibility. Irish retailers are now being assessed by a range of stakeholders – suppliers, customers and investors on their plans and strategy in this respect. At present, there seems to be an almost “whimper-like” exclusivity of focus on the “E” element of ESG – environmental metrics/carbon emissions within these frameworks to the detriment of a more holistic approach. This is understandable given the breadth of ESG and, in many cases, the lack of experience/guidance in this regard.
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But the development of a gender-diverse management team can act as strong foundation for both the “S” and “G” pillars. In a competitive trading environment it provides real, tangible evidence that the business reflects its customer base, which will support customer engagement and loyalty into the future – the lifeblood of any retail business.
From speaking with a range of Irish retailers in recent times there is a real appetite and desire to support the transition to increased female representation on their management teams. When seeking guidance, I ask them to reflect on these areas initially:
· Is diversity and inclusion a recurring executive/management agenda item?
· Do management’s annual targets include nurturing female talent within the organisation?
· How are existing employees being developed – additional skill set/role diversity supported?
· The potential to establish two-way mentoring sessions with the aim to educate senior colleagues about the lived experience of female colleagues in the business, and provide career support for more junior colleagues.
· The effectiveness of utilising consistent, clear communication to embed the businesses’ goal of being a champion of diversity – listening to staff to establish the current barriers to progression.
· Are flexible, remote working opportunities available?
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While some retailers may believe the above is just the preserve of large international retailers, in fact, a successful implementation leans heavily on the principal skills/differential of family-owned entities – knowing and understanding their staff and the market in which they operate. If 51 per cent of your staff (women) can see that proactive, inclusive steps are being taken to develop their career opportunities, this will unquestionably lead to improved employee engagement. Engaged employees deliver a better customer experience leading to improved sales and loyalty. This really is a virtuous circle.
There are a number of excellent women leaders in Irish retail: Breege O’ Donoghue (Penneys/Primark), Margaret Heffernan (Dunnes Stores), Natasha Adams (Tesco) and Evelyn Moynihan (Kilkenny Group) to name but a few. These trailblazers are supported by strong male advocates within the sector and can be an inspiration for the next generation of female leaders. Former US president Theodore Roosevelt once said, “In any moment of decision, the best thing you can do is the right thing, the worst thing you can do is nothing”. Progressive retailers that I engage with nationwide recognise that doing nothing to develop female talent within their business is incompatible with creating a vibrant, sustainable business. The time for action is now.
Owen Clifford is head of retail sector at Bank of Ireland
