1. Retail
Employment
Insight
REPORT

2. Survey Methodology 2
The retail sector represents 10% From this, an estimate of the median
of the total UK job market, employing salary for each category in
roughly 2.6 million people each year is made separately for
London and regions outside of
Sample size – 427,277 job adverts London combined
placed on RetailChoice.com
between January 2007 and To avoid distortions due to a change
December 2011 in the job mix the job category mix in
2011 was used in all years to
All data is compiled by Marriott estimate the trend in salaries.
Statistical Consulting in March 2012 For example, more management
jobs in 2011 compared to 2010 would
The median salary was calculated in cause the median salary to rise even
each year and region if both managers and non-managers
suffered a small fall in salary,
Each job title is allocated to just one since managers are paid more than
job category non-managers
RetailChoice.com

3. Foreword 3
“The economic
downturn has led to
a far more defined
polarisation of buying
behaviours”
With the continued economic upheaval to value brands for their day to day then adapting both in terms of
in the Eurozone and closer to home items and purchasing one-off premium operating strategy but also in the way
in the UK, coupled with high profile goods for a touch of luxury. they recruit.
bankruptcies such as Peacock’s,
Game and Jane Norman you could be Some have called this phenomenon Digital specialists and those who
forgiven for thinking that jobs in the the ‘flight from the middle’. This are proficient in softer customer
retail industry are in a permanent state change has undoubtedly had an experience skills will undoubtedly
of decline. With this report we set out to impact on retail brands and goes some become ever more sought after as
unearth whether this is in fact the case. way to explaining why retailers such brands look to capitalise on the
as Tesco’s, Morrison’s and Sainsbury’s predicted economic green shoots
As the largest specialist retail jobs continue to recruit, whereas brands appearing in the coming months.
board in the UK we have access such as Mothercare are struggling.
to unrivalled historical data on the This is the first RetailChoice.com
number of positions being advertised The other significant change that has trend report and our intention is to
and the applications per post across had a massive impact on retailer’s produce them on a half yearly basis.
every sector of the UK retail industry. strategy is the ubiquity of technology. I hope you enjoy reading this insight
With consumers increasingly turning and if you have any feedback please
For me, the most striking thing is to their smartphones or laptops do get in touch.
the effect that wider societal changes to complete retail transactions we
have had on the retail jobs market. have seen a significant growth in the Neil Brodie
The economic downturn has led to number of specialist technology and Sales Director, RetailChoice.com
a far more defined polarisation of marketing roles being advertised,
buying behaviours. particularly for head office roles.
For retailers the key to success will
Consumers looking to get the most out be understanding how societal trends
of their money are increasingly turning will affect the way they trade and
Data analysis provided by
RetailChoice.com

4. Contents 4
Foreword 03
Executive Summary 05
Impact of the Economic Downturn on the Retail Jobs Market 06
Recruitment Strategies and Pay 07
Sector Analysis — Fashion 08
Sector Analysis — Electrical / Telecoms 10
Sector Analysis — Supermarkets / Food 11
Regional Trends 12
Regional Spotlight — London 13
Regional Spotlight — Wales, Scotland / Northern Ireland 14
Emerging Trends 15
RetailChoice.com

5. Executive Summary 5
Job Advertisements Vs Applications per Job
120,000 30
100,000 25
80,000 20
No. Applications per job
No. Unique Job Adverts
60,000 15
40,000 10
20,000 5
0 0
20
20
20
20
20
07
08
09
10
11
Total No. Unique Job Adverts Average No. Application per Job
“Applications per job have increased
by 50% since 2008”
The retail sector represents 10% fashion which witnessed a 13% to employ the most talented staff
of the total UK job market, employing drop in the number of roles to help them deal with the
roughly 2.6 million people. advertised. It is likely that this has fast-changing world of retail.
been caused by the knock on effect
Since the economic downturn the of a significant spike in national With the ever increasing use of retail
number of advertised jobs has fallen unemployment up more than 150,000 technology and the roll-out of
considerably. In 2008 RetailChoice. to a total of 2.67 million. With more multi-platform marketing campaigns
com advertised around 110,000 than 8% of the working population there has been a clear growth in the
roles, which fell sharply to just over unemployed there is significantly advertised salaries of specialist
55,000 in 2009. less disposable income available roles. In some sectors they were
to spend on fashion items which attracting as much as a 20%
The drop in adverts was mirrored too many are not regarded as premium on the more generalist
almost exactly by a steep rise essential compared with things such roles such as store managers.
in the number of applications per as other retail goods like food.
job. In 2008 there were around 12 In a sign of increased confidence
applications per post, but in 2009 The volume of people applying for of a return to economic growth,
this had almost doubled to each role demonstrates clearly this 2011 saw the first rise in retail sector
approximately 23 applications it is an employers’ market, allowing average salaries since 2008.
per role. By 2011 this had fallen back recruiters to be more selective and An average increase of 2.3%
slightly too just short of 19 choosing only the very highest should offer some encouragement
applications per role. calibre of candidates. For those to recruiters and candidates alike.
searching for their next role this
One retail sector which was means increased competition but
particularly badly hit in 2011 was for recruiters this is an opportunity
RetailChoice.com

6. Impact Of The Economic Downturn On The Retail Jobs Market 6
Job Adverts by Sector – 2011 Vs 2008
Electrical/Telecoms -57%
Fashion -17%
Footwear/Accessories 10%
General/Department Store 68%
Health/Beauty -7%
Home/DIY -34%
Leisure/Hospitality 21%
Other Retailers
-58%
Supermarket/Food
-38%
-1
-1
-9
-8
-7
-6
-5
-4
-3
-2
-1
0
10
20
(Figures in bars show %
1,
0,
,0
,0
,0
,0
,0
,0
,0
,0
,0
00
00
00
00
00
00
00
00
00
00
00
00
00
change from 2008 to 2011)
0
0
“Fallout from the 2008 economic downturn
continues, but there are some signs of
recovery. Department stores, leisure and
footwear performed better than other sectors”
With continued pressure on margins other areas of retail and consequently customer interactions. They are also
and a necessity to keep costs down have continued to need to hire. more flexible in terms of the hours
retailers are running their organisations For retail sectors that have been they are looking to work for example
leaner than ever before. Employees significantly affected by the advent of covering part-time or peak time hours
are expected to be more versatile internet shopping there has been – a distinct advantage in uncertain
and cover for roles which may no a noticeable increase in the number economic times.
longer exist following organisational of roles requiring skills suited to
restructuring. a multi-platform environment, in
particular for things such as e-retail
RetailChoice.com data shows that marketing and logistics. “Our employee turnover remains fairly
almost all retail sectors saw a fall in static. We’ve always received a high
job adverts between 2008 and 2011, With an ever increasing proportion number of applications, especially
except department stores, leisure and of the UK population falling in to the for head office roles and yes, we
footwear. For department stores this over-50’s age group it is likely that have seen an increase in the volume
is likely to be because they tend to we will a similar change in the make- of these”
deal with the luxury end of the market, up of the retail workforce. Asda and
an area that has been significantly B&Q are already championing the use Rose Scott
less affected by consumer sentiment. of older workers as they are seen as — HR Manager, Paperchase
Leisure and footwear are also seeing being able to offer more soft skills,
far less online competition than some extremely important in face-to-face
RetailChoice.com

7. Recruitment Strategies and Pay 7
Median Annual Salary 2001 – 2011
£28,000
£27,000
£26,000
£25,000
£24,000
£23,000
2011
2007
2008
2009
2010
£22,000
£21,000
Median Annual Salary
“The importance of specialist skills continues to
grow - advertised salaries were on average 20%
better than for more generalist roles”
The retail industry has always suffered attracting 20% better salaries Anecdotally the trend towards
with high staff turnover, estimated than the more generalist store promoting from within has continued,
at around 40%; this churn brings with manager positions. further highlighting the importance
it increased costs through recruitment of hiring the very best candidates in
and training. With the economy still During the economic downturn many the first place. Recruitment strategies
weak, retailers are continuing to focus organisations underwent restructuring should never be just about fixing the
on driving down recruitment and programmes which led to reductions current resource gap; instead it should
staffing costs. in headcount. In many instances the be about building for the future.
remaining employees were expected
This has led to a greater focus on to cover the positions which had
recruiting the right people with been rationalised.
the specialist skills to support the “We have continued to recruit for
organisation’s aspirations. Employers Employees have been asked to management roles, but were fairly
are looking for a different type work much harder and cover a greater static in 2011 and chose to promote
of candidate to those they were variety of tasks, this has led to many internally. It was also more noticeable
interviewing in 2008, a proven track retailers re-examining their policies that people were making decisions
record with transferable specialist towards holiday entitlement, based upon money.”
skills are the order of the day. flexi-time and benefits to retain and
recruit the best staff. This may be one Sam Lucking
RetailChoice.com data shows that of the reasons why RetailChoice.com — HR Manager, Paperchase
specialist roles in the areas of digital, data showed the first rise in average
design and advertising are on average salaries since 2008.
RetailChoice.com

8. Sector Analysis — Fashion 8
Jobless Total Unemployment and Claiment Count in the UK 1992-2012
3.5
3.0
2.5
No. of Jobless (Millions)
2.0
1.5
1.0
0.5
0
20
08
19
19
19
19
19
19
19
19
20
20
20
20
20
20
20
20
20
20
20
20
92
93
94
95
96
97
98
99
00
01
02
03
04
05
06
07
09
10
11
12
Claimant count Unemployment
Source: Office of National Statistics (ONS) Data
“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 The availability of fashion roles seems Just as the national picture saw
proportion of the jobs available in the to have followed a similar trajectory a steep rise in unemployment in 2009
retail sector as a whole, a fact that to the national unemployment picture, then a moderate reduction in 2010,
is reflected by RetailChoice.com’s highlighting how intrinsically this fashion retail saw an equally steep
data where almost half of the jobs area is linked with levels of consumer decline in roles available in 2009 then
advertised were for fashion roles. disposable income. a slight rise in availability in 2010.
RetailChoice.com

9. Sector Analysis — Fashion 9
London Premium Vs Median Annual Salaries
£29,000 30
£28,000 25%
Estimated Median Salary (2011 weights)
London Premium to other Regions
Median
£27,000 £27,739 20%
Premium
Median 24%
Median
£26,871
Premium
£26,000 £26,561 15%
Premium
22%
Median
26%
£25,910
Premium
£25,000 10%
25%
Median
£24,750
£24,000 Premium
5%
21%
£23,000 0%
20
20
20
20
20
07
08
09
10
11
Median Annual Salary London Premium
As the UK’s unemployment levels One highlight of the fashion sector was
rose again in 2011, so the number of a significant rise in advertised salaries.
fashion roles decreased. Office of National Statistics (ONS) data “It’s an employers’ market at the
suggests that for the UK as a whole moment because of the difficult
In 2011 more than 37,000 fashion roles wages rose by 2.3% however fashion economy. But it’s important to look
were posted to RetailChoice.com roles on RetailChoice.com increased after your current staff – it’s more
receiving on average 19 applications by 3.4%. expensive to lose someone.”
per role a growth of 2% year on year.
Maha Mekkaoui
With the popularity of online fashion — HR Manager, Sixty
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%.
RetailChoice.com

10. Sector Analysis — Electrical & Telecoms 10
Change in No. of Applications per Job 2010 – 2011
Fashion 19.7
Electrical/Telecoms 17.0
Supermarket/Food 25.4
Home/DIY 12.4
Footwear/Accessories 19.1
General/Department Store 20.1
Health/Beauty 21.6
Other Retailers 13.1
(Figures in bars show
-8
-6
-4
-2
0
2
4
6
8
10
12
No. applications per job
in 2011)
Consumers moving online has caused
a significant drop in roles”
The research revealed that electrical On the flip side, electrical and Recent research from Capgemini/
and telecoms was one of the few areas telecoms was one of the few sectors IMRG has shown that since 2000 sales
to have seen a decline in the number to have seen a rise in the number of of electrical goods online have grown
of people applying for each job. From roles being advertised with a rise of by a massive 996%, with a particular
a high of 26 applications per advert 13% year on year to just shy of 6,000. surge in the last three to four years.
in 2009, submissions have fallen to However this is still almost 8,000 less
roughly 16 applications per job. In roles than were advertised in 2008
2011 the total number of applications prior to the economic downturn.
dropped by 20% year on year. “The growth of ‘click and collect’,
Although the number of roles multichannel retailing and
One possible explanation for the available has increased in the past m-commerce means more retailers
decline in enthusiasm for these roles year, there has been a significant need to make sure staff are familiar
could be the lack of growth in salaries. fall in the number of sales assistant with their ordering systems to ensure
Despite some growth in 2011 (+0.9%) roles available. The number of these the customer experience is seamless.
they are still a full percentage point types of adverts dropped by almost Customers increasingly expect staff to
less than the peak in advertised 20%, a pattern which is likely to be be experts in their category, ready to
salaries in 2009 when the median linked to the wider trend of increasing help them make an informed choice.”
annual salary stood at £23,321. online shopping.
Anne Seaman
— Chief Executive, of Skillsmart Retail
RetailChoice.com

11. Sector Analysis — Supermarkets & Food 11
Change in No. of Applications per Job 2010 – 2011
Sales Assistants
Store Manager
Buying
Other Head Office Vacencies
Pharmacy
Department Management
Supervisor
Logistics
Administration & Support
Merchandising
-7
-5
-2
0%
25
50
75
10
12
15
17
20
5%
0%
5%
%
%
%
0%
5%
0%
5%
0%
“The number of applications for each role
doubled between 2010 and 2011”
The number of supermarket and food and Tesco may have led to a surge Salary increases were most marked in
retailer roles available has not followed in unemployed people looking for the supermarket and food sector with
a steady pattern. After a huge fall of roles in these areas, leading to the the advertised median annual salary
more than 60% between 2008 and spike in competition for roles. In line standing at £34,327, 7.4% higher in
2009, things began to look up with with the supermarkets looking to 2011 than in 2008 when candidates
some growth in 2010, however this recruit more, RetailChoice.com data could expect £27,457.
fell back again in 2011. revealed a 200% rise in sales assistant
jobs in 2011. The ‘London premium’ continued
From a peak of about 9,000 jobs to grow in 2011 with London based
advertised in 2008, 2011 saw just over In fact sales assistant’s roles candidates being able to command
half the amount at 5,500. constituted two thirds of all the 23%, up 10% on 2010, extra pay
Although the number of roles supermarket roles advertised in 2011, compared to those in other regions.
advertised has been on somewhat whereas in 2010, 45% of adverts had
of a roller coaster one thing that has been for store managers.
consistently grown is the number of
applications per role. Specialist roles also saw an increase
in demand, in particular pharmacy
Between 2010 and 2011 this doubled and logistics, which both saw an
to an average of 25.4 applications increase in adverts of more than
per advert. In 2008 this number had 100% in 2011. Senior head office roles
been approximately six per position also rose as supermarkets looked
available. National publicity around to strengthen their leadership teams
the recruitment drives of some of the to deal with an increasingly tough
major supermarkets such as Asda trading environment.
RetailChoice.com

12. Regional Trends 12
Breakdown of Regions by Selected Sectors in 2011
100%
90%
80%
London Premium to other Regions
70%
60%
% Job Adverts
50%
40%
30%
20%
10%
0%
London South East Other Regions
Fashion Supermarket/Food Electrical/Telecoms Others
“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%”
The regional picture was similar to the The retail market has likely been
national one with reductions in the less affected in these areas as the
number of roles available. Perhaps demographic is generally wealthier
unsurprisingly London (-4%) and the and has continued to spend during the
South-East (-1%) have weathered the economic downturn in comparison to
economic downturn slightly better other regions.
with only slight reductions in roles
advertised between 2008 and 2011. 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.
RetailChoice.com

13. Regional Spotlight — London 13
London Premium Vs Median Annual Salaries
£28,000 25%
£27,000
20%
Estimated Median Salary (2011 weights)
London Premium to other Regions
£26,000 Median
£26,398
Median Premium
Median
£25,803 23% 15%
£25,000 £25,715 Premium
Median
Premium
£25,607 20%
20%
Premium
£24,000 16%
10%
Median
£23,964
£23,000 Premium
16%
5%
£22,000
£21,000 0%
20
20
20
20
20
07
08
09
10
11
Median Annual Salary London Premium
“Fashion roles accounted for 70% of jobs
advertised in London”
ONS figures show that unemployment the 2011 figures which show that of all
in London is the second highest of any the roles advertised in the region, 70%
region in the UK, at a fraction short of were for fashion retailers, nationwide “The downturn has forced retailers to
10%. However its demographics mean the figure was just 43%. be even more proactive to ensure they
that there is a significantly higher level Factors such as the opening of the get their share of consumer spending
of disposable income available new Westfield shopping centre in at a time when we’re all being more
to support industries such as retail. Stratford and the upcoming Olympics careful. Especially for smaller retailers,
are likely to have been contributing less able to compete on product and
It is also a hotspot for tourism and factors to this. price with their larger competitors,
with many thousands of visitors each people are where they can make a real
year bringing added spending power As the financial centre of the UK, difference and training is key.”
it is easy to see why the retail many of the biggest retailers are
industry’s fortunes have fared a little headquartered in London. Head office Anne Seaman
better in London. roles such as buying, design and — Chief Executive of Skillsmart Retail
technology accounted for 29% of
London’s reputation as a global centre advertised roles in London as oppose
for fashion and design is borne out by to just 9% for other UK regions.
RetailChoice.com

14. Regional Spotlight — Wales, Scotland & Northern Ireland 14
No. Job adverts in the UK in 2011 is down 27% since 2008 but in Scotland the decline is 43%
120%
100%
Index of No. Job Adverts (100% = 2008)
Median
Median
6,318 6,308
% Year on Year Change
% Year on Year Change
80% 0%
n/a
60%
Median
3,755 Median
% Year on Year Change
40% 3,641
Median 23% % Year on Year Change
3,052 -4%
% Year on Year Change
-52%
20%
0%
20
20
20
20
20
07
08
09
10
11
Scotland United Kingdom
“Since 2008, advertised roles in Scotland
have dropped by 43%”
Recent ONS figures showed that Northern Ireland and Wales were both
Scotland has seen an increase in retail hit with significant reductions in roles
sales; unfortunately this good news advertised during 2011. Wales saw falls
wasn’t reflected in the recruitment of 19% but the worst hit was Northern
numbers where Retailchoice.com Ireland which had reductions of 24%.
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%
RetailChoice.com

15. Emerging Trends 15
“Adapting to
a multi-platform retail
world will be the
defining challenge”
Since 2008 the UK retail sector potential retail platform, providing their best employees whilst attracting
has dealt with a significant consistency of service and brand new ones. This is likely to drive up
number of challenges including values to the end consumer, will be salaries and demand for the best
the Eurozone crisis; reductions in the ones who win out. candidates, although for the moment it
consumer spending power; increasing remains an employers’ market.
running costs; greater competition; Employing the right people to
the growth in multi-platform retailing provide those specialist skills will
and now a double dip recession. be an important foundation stone
to achieving this.Consumers have “Retailers still generally hire on attitude
It is unlikely that the trading always placed great importance rather than specific qualifications, but
environment is going to get any on the customer service they receive in an increasingly competitive market
easier in the short term and retailers from retailers. they are all looking to their staff to
will need to adapt to this to remain provide that point of difference”
competitive. In particular the growth An increasing number of major
in multi-platform retailing is likely to retailers are returning to this ethos in Anne Seaman
define the next five years. an effort to boost sales, most notably — Chief Executive of Skillsmart Retail
Asda, Tesco and John Lewis have
Recruiting the staff that understand all been vocal about their strategy of
this new model and can deliver value putting the customer experience at the
to the business and consumer will be centre of their operating model.Again
key. Not only will this change require this is an area which will require staff
people with different skill sets it with the right skills.
will also mean that retailers have to
restructure their business operating As glimmers of green shoots begin
model. The retailers who are able to to appear in the economy it will be
get the balance right between each important for retailers to keep hold of
RetailChoice.com

16. Credits 16
Further information
Since its launch in 2004, RetailChoice.com has pioneered If you are interested in finding out more about how
online recruitment for the retail industry. Working with a RetailChoice.com can help you and your business,
range of retail businesses across all sectors across the UK, please either email:
it has developed a strong reputation as a leader in its field, sales@retailchoice.com,
helping both small and large businesses to improve their or call 020 7572 4284
recruitment and retention processes. to speak to a recruitment expert.
Register to receive future Retail Employment Insight reports
today at www.retailchoice.com/rei
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