Retail: The Great Enabler

The discussion was led by Kevin Hollinrake MP, Minister for Enterprise, Markets and Small Business, Simon Roberts, CEO of Sainsbury’s, Helen Dickinson, CEO British Retail Consortium and Dave McCarthy, author of the report.

We discussed the report’s key findings of the most prevalent challenges facing the retail industry from high taxation to ever-changing consumer demand and the pressure on resources. Furthermore, the speakers addressed ways to move forward from these challenges, such as growing a high-skill workforce and working effectively with government. See the full report here.

Creating a fair and level playing field

The retail sector is a highly competitive sector striving for a fair and level playing field on taxation. Today, the tax and legislation landscape is hugely distorted between bricks-and-mortar retailers and online, D2C (direct-to-consumer) players. Leaders spoke about the stark consequences that come with high taxation, which impacts employment, long-term security, and the ability to invest in the future. This is a burden on the industry and needs to be addressed rapidly. Significant pressures are coming from international D2C online retailers, due to the inequity of tax legislation.

Changing patterns of consumer demand

Today’s consumer is more diverse than ever in terms of household size, diet and ethnic diversity. This has coincided with a rapid change in customer shopping habits; in recent times, customers have become better informed, and more cost-conscious of the products they buy. The Cost-of-Living Crisis, along with demands for environmentally sustainable products, has greatly changed how consumers are spending, and the challenge for the industry is to adapt its response to meet this shift.

Investing in the talent pipeline

In response to changing patterns of demand, specialist capabilities have become an essential commodity in the talent market. To continue investing in the right talent, leaders discussed the need to repurpose the apprenticeship levy in order to power on and drive future growth. It is the responsibility of the sector to create the pathways into retail.

Supply chain disruption and the growing pressures on resource

Retailers face three main challenges in this space – supply, compounded by greater global competition for finite resources; security, impacted by global conflicts including the war in Ukraine and the current Red Sea crisis; and sustainability, affected by the continuing impact of climate change. All three are interlinked and pose a significant challenge to the retail industry. However, the industry is resilient and innovative and has managed to navigate uncertainty in order to thrive.

Collaboration with government

The retail sector as a whole recognises the need for greater collaboration with government. There has, at times, been a disconnect in achieving successful outcomes when attempting to garner sector-level investment and political support. To truly benefit the sector, the panel discussed the need for the 3 C's when engaging the government: a compelling case, a coalition of people to support this case, and to be consistent and persistent in communications with government officials. Collaboration is a necessity, and without true commitment from government to support the future of retail there will be long-term ramifications.

The future of retail

The feeling of the night was optimistic. Our panellists spoke to the strengths of the industry, being the UK’s largest private sector employer, with three million people working in retail, the immense contribution the sector brings to the economy, both directly and indirectly and the uniqueness of the industry with its unrivalled reach to the consumer. 

Looking forward, as inflation starts to slow, there is opportunity to excite customers again and find ways to collaborate and continue to strengthen the industry and unlock future potential. Together, the retail sector and the government must find ways to protect this cornerstone of the British economy, and ensure a brighter future for the industry as a whole. 

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