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Retail Employment InsightREPORT
RetailChoice.com
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The retail sector represents 10% of the total UK job market, employing roughly 2.6 million people
Sample size – 427,277 job adverts placed on RetailChoice.com between January 2007 and December 2011
All data is compiled by Marriott Statistical Consulting in March 2012
The median salary was calculated in each year and region
Each job title is allocated to just one job category
From this, an estimate of the median salary for each category in each year is made separately for London and regions outside of London combined
To avoid distortions due to a change in the job mix the job category mix in 2011 was used in all years to estimate the trend in salaries. For example, more management jobs in 2011 compared to 2010 would cause the median salary to rise even if both managers and non-managers suffered a small fall in salary, since managers are paid more than non-managers
Survey Methodology
RetailChoice.com
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With the continued economic upheaval in the Eurozone and closer to home in the UK, coupled with high profile bankruptcies such as Peacock’s, Game and Jane Norman you could be forgiven for thinking that jobs in the retail industry are in a permanent state of decline. With this report we set out to unearth whether this is in fact the case.
As the largest specialist retail jobs board in the UK we have access to unrivalled historical data on the number of positions being advertised and the applications per post across every sector of the UK retail industry.
For me, the most striking thing is the effect that wider societal changes have had on the retail jobs market. The economic downturn has led to a far more defined polarisation of buying behaviours.
Consumers looking to get the most out of their money are increasingly turning
to value brands for their day to day items and purchasing one-off premium goods for a touch of luxury.
Some have called this phenomenon the ‘flight from the middle’. This change has undoubtedly had an impact on retail brands and goes some way to explaining why retailers such as Tesco’s, Morrison’s and Sainsbury’s continue to recruit, whereas brands such as Mothercare are struggling.
The other significant change that has had a massive impact on retailer’s strategy is the ubiquity of technology. With consumers increasingly turning to their smartphones or laptops to complete retail transactions we have seen a significant growth in the number of specialist technology and marketing roles being advertised, particularly for head office roles.For retailers the key to success will be understanding how societal trends will affect the way they trade and
then adapting both in terms of operating strategy but also in the way they recruit.
Digital specialists and those who are proficient in softer customer experience skills will undoubtedly become ever more sought after as brands look to capitalise on the predicted economic green shoots appearing in the coming months.
This is the first RetailChoice.com trend report and our intention is to produce them on a half yearly basis. I hope you enjoy reading this insight and if you have any feedback please do get in touch.
Neil Brodie Sales Director, RetailChoice.com
“The economic downturn has led to a far more defined polarisation of buying behaviours”
Foreword
Data analysis provided by
RetailChoice.com
4Contents
03
05
06
07
08
10
11
12
13
14
15
Foreword
Executive Summary
Impact of the Economic Downturn on the Retail Jobs Market
Recruitment Strategies and Pay
Sector Analysis — Fashion
Sector Analysis — Electrical / Telecoms
Sector Analysis — Supermarkets / Food
Regional Trends
Regional Spotlight — London
Regional Spotlight — Wales, Scotland / Northern Ireland
Emerging Trends
No
. Un
iqu
e J
ob
Ad
vert
s
No
. Ap
plic
atio
ns
pe
r jo
b
2007
20,000
0 0
40,000
60,000
80,000
100,000
120,000
5
10
15
20
25
30
20082009
20102011
Total No. Unique Job Adverts Average No. Application per Job
RetailChoice.com
5
The retail sector represents 10% of the total UK job market, employing roughly 2.6 million people.
Since the economic downturn the number of advertised jobs has fallen considerably. In 2008 RetailChoice. com advertised around 110,000 roles, which fell sharply to just over 55,000 in 2009.
The drop in adverts was mirrored almost exactly by a steep rise in the number of applications per job. In 2008 there were around 12 applications per post, but in 2009 this had almost doubled to approximately 23 applications per role. By 2011 this had fallen back slightly too just short of 19 applications per role.
One retail sector which was particularly badly hit in 2011 was
fashion which witnessed a 13% drop in the number of roles advertised. It is likely that this has been caused by the knock on effect of a significant spike in national unemployment up more than 150,000 to a total of 2.67 million. With more than 8% of the working population unemployed there is significantly less disposable income available to spend on fashion items which too many are not regarded as essential compared with things such as other retail goods like food.
The volume of people applying for each role demonstrates clearly this it is an employers’ market, allowing recruiters to be more selective and choosing only the very highest calibre of candidates. For those searching for their next role this means increased competition but for recruiters this is an opportunity
to employ the most talented staff to help them deal with the fast-changing world of retail.
With the ever increasing use of retail technology and the roll-out of multi-platform marketing campaigns there has been a clear growth in the advertised salaries of specialist roles. In some sectors they were attracting as much as a 20% premium on the more generalist roles such as store managers.
In a sign of increased confidence of a return to economic growth, 2011 saw the first rise in retail sector average salaries since 2008. An average increase of 2.3% should offer some encouragement to recruiters and candidates alike.
“Applications per job have increased by 50% since 2008”
Job Advertisements Vs Applications per Job
Executive Summary
Electrical/Telecoms
Fashion
Footwear/Accessories
General/Department Store
Health/Beauty
Home/DIY
Leisure/Hospitality
Other Retailers
Supermarket/Food
(Figures in bars show % change from 2008 to 2011)
-11,000
-10,000
-9,000
-8,000
-7,000
-6,000
-5,000
-4,000
-3,000
-2,000
-1,000
0 10002000
-57%
-17%
-7%
-34%
21%
-58%
-38%
10%
68%
RetailChoice.com
6
With continued pressure on margins and a necessity to keep costs down retailers are running their organisations leaner than ever before. Employees are expected to be more versatile and cover for roles which may no longer exist following organisational restructuring.
RetailChoice.com data shows that almost all retail sectors saw a fall in job adverts between 2008 and 2011, except department stores, leisure and footwear. For department stores this is likely to be because they tend to deal with the luxury end of the market, an area that has been significantly less affected by consumer sentiment. Leisure and footwear are also seeing far less online competition than some
other areas of retail and consequently have continued to need to hire.For retail sectors that have been significantly affected by the advent of internet shopping there has been a noticeable increase in the number of roles requiring skills suited to a multi-platform environment, in particular for things such as e-retail marketing and logistics.
With an ever increasing proportion of the UK population falling in to the over-50’s age group it is likely that we will a similar change in the make-up of the retail workforce. Asda and B&Q are already championing the use of older workers as they are seen as being able to offer more soft skills, extremely important in face-to-face
customer interactions. They are also more flexible in terms of the hours they are looking to work for example covering part-time or peak time hours – a distinct advantage in uncertain economic times.
“Our employee turnover remains fairly static. We’ve always received a high number of applications, especially for head office roles and yes, we have seen an increase in the volume of these”
Rose Scott — HR Manager, Paperchase
“Fallout from the 2008 economic downturn continues, but there are some signs of recovery. Department stores, leisure and footwear performed better than other sectors”
Job Adverts by Sector – 2011 Vs 2008
Impact Of The Economic Downturn On The Retail Jobs Market
2011
Median Annual Salary
£22,000
£21,000
£23,000
£24,000
£25,000
£26,000
£27,000
£28,000
2007
2008
2009
2010
2011
RetailChoice.com
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The retail industry has always suffered with high staff turnover, estimated at around 40%; this churn brings with it increased costs through recruitment and training. With the economy still weak, retailers are continuing to focus on driving down recruitment and staffing costs.
This has led to a greater focus on recruiting the right people with the specialist skills to support the organisation’s aspirations. Employers are looking for a different type of candidate to those they were interviewing in 2008, a proven track record with transferable specialist skills are the order of the day.
RetailChoice.com data shows that specialist roles in the areas of digital, design and advertising are on average
attracting 20% better salaries than the more generalist store manager positions.
During the economic downturn many organisations underwent restructuring programmes which led to reductions in headcount. In many instances the remaining employees were expected to cover the positions which had been rationalised.
Employees have been asked to work much harder and cover a greater variety of tasks, this has led to many retailers re-examining their policies towards holiday entitlement, flexi-time and benefits to retain and recruit the best staff. This may be one of the reasons why RetailChoice.com data showed the first rise in average salaries since 2008.
Anecdotally the trend towards promoting from within has continued, further highlighting the importance of hiring the very best candidates in the first place. Recruitment strategies should never be just about fixing the current resource gap; instead it should be about building for the future.
“We have continued to recruit for management roles, but were fairly static in 2011 and chose to promote internally. It was also more noticeable that people were making decisions based upon money.”
Sam Lucking — HR Manager, Paperchase
“The importance of specialist skills continues to grow - advertised salaries were on average 20% better than for more generalist roles”
Median Annual Salary 2001 – 2011
Recruitment Strategies and Pay
No
. of
Job
less
(M
illio
ns)
1992
0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
19931994
19951996
19971998
19992000
20012002
20032004
20052006
20072008
20092010
20112012
Claimant count Unemployment
RetailChoice.com
8
Jobless Total Unemployment and Claiment Count in the UK 1992-2012
Sector Analysis — Fashion
“After a steep fall in jobs in 2009, a rise in 2010 and then a decrease again in 2011, fashion has been one of the most tumultuous sectors in retail”
Fashion makes up a significant proportion of the jobs available in the retail sector as a whole, a fact that is reflected by RetailChoice.com’s data where almost half of the jobs advertised were for fashion roles.
The availability of fashion roles seems to have followed a similar trajectory to the national unemployment picture, highlighting how intrinsically this area is linked with levels of consumer disposable income.
Just as the national picture saw a steep rise in unemployment in 2009 then a moderate reduction in 2010, fashion retail saw an equally steep decline in roles available in 2009 then a slight rise in availability in 2010.
Source: Office of National Statistics (ONS) Data
Estim
ate
d M
ed
ian
Sa
lary
(20
11 w
eig
hts
)
Lon
do
n P
rem
ium
to
oth
er R
eg
ion
s
£24,000
£23,000 0%
£25,000
£26,000
£27,000
£28,000
£29,000
5%
10%
15%
20%
25%
30
20082007
20092010
2011
Median Annual Salary London Premium
Median £25,910Premium
25%
Median £26,561Premium
26%
Median £26,871Premium
22%
Median £27,739Premium
24%
Median £24,750Premium
21%
RetailChoice.com
9
London Premium Vs Median Annual Salaries
Sector Analysis — Fashion
As the UK’s unemployment levels rose again in 2011, so the number of fashion roles decreased.
In 2011 more than 37,000 fashion roles were posted to RetailChoice.com receiving on average 19 applications per role a growth of 2% year on year.
With the popularity of online fashion outlets such as ASOS, Boohoo and Rare it isn’t surprising to see a growth in technology (+20%), IT (+15%) and design (+15%) roles with fashion retailers.
This was in contrast to the more traditional store and area manager roles which decreased by around 10%.
One highlight of the fashion sector was a significant rise in advertised salaries. Office of National Statistics (ONS) data suggests that for the UK as a whole wages rose by 2.3% however fashion roles on RetailChoice.com increased by 3.4%.
“It’s an employers’ market at the moment because of the difficult economy. But it’s important to look after your current staff – it’s more expensive to lose someone.”
Maha Mekkaoui — HR Manager, Sixty
-6 -4 -2 0 2 4 6 8 10 12
Fashion
Electrical/Telecoms
Supermarket/Food
Home/DIY
Footwear/Accessories
General/Department Store
Health/Beauty
Other Retailers
-8(Figures in bars show No. applications per jobin 2011)
19.7
17.0
25.4
12.4
19.1
20.1
21.6
13.1
RetailChoice.com
10
The research revealed that electrical and telecoms was one of the few areas to have seen a decline in the number of people applying for each job. From a high of 26 applications per advert in 2009, submissions have fallen to roughly 16 applications per job. In 2011 the total number of applications dropped by 20% year on year.
One possible explanation for the decline in enthusiasm for these roles could be the lack of growth in salaries. Despite some growth in 2011 (+0.9%) they are still a full percentage point less than the peak in advertised salaries in 2009 when the median annual salary stood at £23,321.
On the flip side, electrical and telecoms was one of the few sectors to have seen a rise in the number of roles being advertised with a rise of 13% year on year to just shy of 6,000. However this is still almost 8,000 less roles than were advertised in 2008 prior to the economic downturn.
Although the number of roles available has increased in the past year, there has been a significant fall in the number of sales assistant roles available. The number of these types of adverts dropped by almost 20%, a pattern which is likely to be linked to the wider trend of increasing online shopping.
Recent research from Capgemini/IMRG has shown that since 2000 sales of electrical goods online have grown by a massive 996%, with a particular surge in the last three to four years.
“The growth of ‘click and collect’, multichannel retailing and m-commerce means more retailers need to make sure staff are familiar with their ordering systems to ensure the customer experience is seamless. Customers increasingly expect staff to be experts in their category, ready to help them make an informed choice.”
Anne Seaman — Chief Executive, of Skillsmart Retail
Consumers moving online has caused a significant drop in roles”
Change in No. of Applications per Job 2010 – 2011
Sector Analysis — Electrical & Telecoms
Sales Assistants
Store Manager
Buying
Other Head Office Vacencies
Pharmacy
Department Management
Supervisor
Logistics
Administration & Support
Merchandising
-75%-50%
-25%0% 25%
50%75%
100%125%
150%175%
200%
RetailChoice.com
11
The number of supermarket and food retailer roles available has not followed a steady pattern. After a huge fall of more than 60% between 2008 and 2009, things began to look up with some growth in 2010, however this fell back again in 2011.
From a peak of about 9,000 jobs advertised in 2008, 2011 saw just over half the amount at 5,500.Although the number of roles advertised has been on somewhat of a roller coaster one thing that has consistently grown is the number of applications per role.
Between 2010 and 2011 this doubled to an average of 25.4 applications per advert. In 2008 this number had been approximately six per position available. National publicity around the recruitment drives of some of the major supermarkets such as Asda
and Tesco may have led to a surge in unemployed people looking for roles in these areas, leading to the spike in competition for roles. In line with the supermarkets looking to recruit more, RetailChoice.com data revealed a 200% rise in sales assistant jobs in 2011.
In fact sales assistant’s roles constituted two thirds of all the supermarket roles advertised in 2011, whereas in 2010, 45% of adverts had been for store managers.
Specialist roles also saw an increase in demand, in particular pharmacy and logistics, which both saw an increase in adverts of more than100% in 2011. Senior head office roles also rose as supermarkets looked to strengthen their leadership teams to deal with an increasingly tough trading environment.
Salary increases were most marked in the supermarket and food sector with the advertised median annual salary standing at £34,327, 7.4% higher in 2011 than in 2008 when candidates could expect £27,457.
The ‘London premium’ continued to grow in 2011 with London based candidates being able to command 23%, up 10% on 2010, extra pay compared to those in other regions.
“The number of applications for each role doubled between 2010 and 2011”
Sector Analysis — Supermarkets & Food
Change in No. of Applications per Job 2010 – 2011
% J
ob
Ad
vert
s
London South East Other Regions
Lon
do
n P
rem
ium
to
oth
er R
eg
ion
s
60%
50%
40%
30%
20%
10%
0%
70%
80%
90%
100%
Fashion Supermarket/Food Electrical/Telecoms Others
RetailChoice.com
12
The regional picture was similar to the national one with reductions in the number of roles available. Perhaps unsurprisingly London (-4%) and the South-East (-1%) have weathered the economic downturn slightly better with only slight reductions in roles advertised between 2008 and 2011.
The retail market has likely been less affected in these areas as the demographic is generally wealthier and has continued to spend during the economic downturn in comparison to other regions.
Outside of London and the South-East, the North-West, South-West and Midlands were the next best performers although even they saw reductions in the number of adverts of about 10% between 2010 and 2011.
“The South East was least affected between 2010 and 2011 with only a 1% drop in job adverts, compared to Northern Ireland which dropped by 24%”
Regional Trends
Breakdown of Regions by Selected Sectors in 2011
£22,000
£21,000
£23,000
£24,000
£25,000
£26,000
£27,000
£28,000
5%
0%
10%
15%
20%
25%
20082007
20092010
2011
Estim
ate
d M
ed
ian
Sa
lary
(20
11 w
eig
hts
)
Lon
do
n P
rem
ium
to
oth
er R
eg
ion
s
Median £25,607Premium
16%
Median £25,715Premium
20%
Median £25,803Premium
20%
Median £26,398Premium
23%
Median £23,964Premium
16%
Median Annual Salary London Premium
RetailChoice.com
13
ONS figures show that unemployment in London is the second highest of any region in the UK, at a fraction short of 10%. However its demographics mean that there is a significantly higher level of disposable income available to support industries such as retail.
It is also a hotspot for tourism and with many thousands of visitors each year bringing added spending power it is easy to see why the retail industry’s fortunes have fared a little better in London.
London’s reputation as a global centre for fashion and design is borne out by
the 2011 figures which show that of all the roles advertised in the region, 70% were for fashion retailers, nationwide the figure was just 43%. Factors such as the opening of the new Westfield shopping centre in Stratford and the upcoming Olympics are likely to have been contributing factors to this.
As the financial centre of the UK, many of the biggest retailers are headquartered in London. Head office roles such as buying, design and technology accounted for 29% of advertised roles in London as oppose to just 9% for other UK regions.
“The downturn has forced retailers to be even more proactive to ensure they get their share of consumer spending at a time when we’re all being more careful. Especially for smaller retailers, less able to compete on product and price with their larger competitors, people are where they can make a real difference and training is key.”
Anne Seaman — Chief Executive of Skillsmart Retail
“Fashion roles accounted for 70% of jobs advertised in London”
Regional Spotlight — London
London Premium Vs Median Annual Salaries
20%
0%
40%
60%
80%
100%
120%
20082007
20092010
2011
Ind
ex
of
No
. Jo
b A
dve
rts
(100
% =
200
8)
Scotland United Kingdom
Median 6,308% Year on Year Change
0%
Median 3,052% Year on Year Change
-52%
Median 3,755% Year on Year Change
23%
Median 3,641% Year on Year Change
-4%
Median 6,318% Year on Year Change
n/a
RetailChoice.com
14
Recent ONS figures showed that Scotland has seen an increase in retail sales; unfortunately this good news wasn’t reflected in the recruitment numbers where Retailchoice.com figures showed a fall of 43% in the number of adverts between 2008 and 2011. In 2007 adverts for jobs in Scotland represented 5.9% of the UK total, in 2011 this had fallen to 4.7%
Northern Ireland and Wales were both hit with significant reductions in roles advertised during 2011. Wales saw falls of 19% but the worst hit was Northern Ireland which had reductions of 24%.
“Since 2008, advertised roles in Scotland have dropped by 43%”
No. Job adverts in the UK in 2011 is down 27% since 2008 but in Scotland the decline is 43%
Regional Spotlight — Wales, Scotland & Northern Ireland
RetailChoice.com
15
Since 2008 the UK retail sectorhas dealt with a significantnumber of challenges including the Eurozone crisis; reductions in consumer spending power; increasing running costs; greater competition; the growth in multi-platform retailing and now a double dip recession.
It is unlikely that the trading environment is going to get any easier in the short term and retailers will need to adapt to this to remain competitive. In particular the growth in multi-platform retailing is likely to define the next five years.
Recruiting the staff that understand this new model and can deliver value to the business and consumer will be key. Not only will this change require people with different skill sets it will also mean that retailers have to restructure their business operating model. The retailers who are able to get the balance right between each
potential retail platform, providing consistency of service and brand values to the end consumer, will be the ones who win out.
Employing the right people to provide those specialist skills will be an important foundation stone to achieving this.Consumers have always placed great importance on the customer service they receive from retailers.
An increasing number of major retailers are returning to this ethos in an effort to boost sales, most notably Asda, Tesco and John Lewis have all been vocal about their strategy of putting the customer experience at the centre of their operating model.Again this is an area which will require staff with the right skills.
As glimmers of green shoots begin to appear in the economy it will be important for retailers to keep hold of
their best employees whilst attracting new ones. This is likely to drive up salaries and demand for the best candidates, although for the moment it remains an employers’ market.
“Retailers still generally hire on attitude rather than specific qualifications, but in an increasingly competitive market they are all looking to their staff to provide that point of difference”
Anne Seaman — Chief Executive of Skillsmart Retail
“Adapting to a multi-platform retail world will be the defining challenge”
Emerging Trends
RetailChoice.com
16
Further information
Since its launch in 2004, RetailChoice.com has pioneered online recruitment for the retail industry. Working with a range of retail businesses across all sectors across the UK, it has developed a strong reputation as a leader in its field, helping both small and large businesses to improve their recruitment and retention processes.
If you are interested in finding out more about how RetailChoice.com can help you and your business, please either email:[email protected], or call 020 7572 4284 to speak to a recruitment expert.
Register to receive future Retail Employment Insight reports today at www.retailchoice.com/rei
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