Extract from IDS Executive Compensation Review 303, May 2006

Retail managers

Retail is now one of the most important sectors of the UK economy, employing over a tenth of the workforce. Given the sector’s importance we regularly take a look at the recruitment market for retail managers with our latest survey published in January 2005. Returning for another look, we assess current retail job market trends, drawing on the views of recruitment consultants and employers’ bodies.

To employers’ bodies the employment outlook in retail looks gloomy, but to some recruitment consultants specialising in the field it is not hard to find examples of retailers who are performing well and seeking to recruit. The more downbeat picture is illustrated by CBI figures released in February 2006 which show that employment in retailing fell at the sharpest rate in 22 years. According to the business organisation’s quarterly survey of the retail sector, 37 per cent of firms reported a fall in jobs, but only 11 per cent reported a rise. All this comes against a background of recorded jobs decline in the sector that has lasted for two years, albeit after a prior period of sustained expansion. Weak consumer spending has influenced the decline, with the British Retail Consortium saying that retail sales in March were down 1.4 per cent compared to 12 months earlier.

To assess the current pay situation for retail management against this backdrop, this article analyses around 600 recent job advertisements to provide an indication of current recruitment salaries. Results of the analysis are presented in tables which give an aggregate picture of the pay rates for eight responsibility levels of retail managers. A further breakdown of the pay levels for store managers by region and sector is also provided.