Retail 100 2020: Four of the biggest trends

People and purpose take precedence

With the coronavirus pandemic placing huge pressure on retailers, it is the leaders who have prioritised purpose and company culture throughout this crisis who have emerged as clear winners in the Retail 100.

Recent steps taken by the Co-op chief executive Steve Murrells and Pets at Home chief executive Peter Pritchard exemplify this, while Frasers Group boss Mike Ashley has faced criticism for his recent handling of staff and strategy – resulting in Ashley dropping 15 places in the list.

Another leader putting purpose before profit is Primark chief executive Paul Marchant. While Primark’s reliance on stores has had a huge impact on the retailer during the UK lockdown, Marchant ranks among the top 20 for his approach to paying suppliers.

After some initial criticism of its treatment of suppliers during the outbreak, Primark acted generously towards the overseas manufacturers that make its clothing and has set a good example. In April, despite not trading, the retailer pledged to pay £370m to suppliers for stock to help support them throughout the crisis.

Grocers dominate the top 30

This year’s Retail 100 has placed special emphasis on leaders who have stepped up in the face of the pandemic and made tough but necessary decisions in response. Unsurprisingly, leaders from food and grocery – forced to accelerate their supply chains and adopt new business models to meet customer demand – dominate the top 30, with Tesco boss Dave Lewis retaining number-one spot.

Lewis has had a vintage year, having overseen Britain’s biggest retailer completing its turnaround and with Tesco playing a crucial role in feeding the nation during the pandemic.

There are 15 food and grocery leaders among the top 30 including Morrisons chief executive David Potts in fourth (up from 10th last year) and new entry Dame Sharon White, chair of the John Lewis Partnership, at 17th. In total, there are 30 leaders from food and grocery in the list.

More women disrupting retail than ever before

Increased diversity was one of the big trends that characterised last year’s Retail 100 and there is greater diversity this year.

Twenty-three women are celebrated in the Retail 100 2020 – up from 18 in 2019 – marking the highest number of women in the list’s history. Boohoo co-founder Carol Kane is the highest placed woman at ninth place, followed by White at 17th and H&M chief executive Helena Helmersson at 28th.

The appointments of Rachel Osborne as Ted Baker CEO, Clare Clough as MD of Pret A Manger and Sainsbury’s promotion of Clodagh Moriarty to retail and digital director highlight a positive step-change in representation at the top.

Women making up fewer than a quarter of the list does, however, indicate that there is still more work to be done; not least when you consider that Card Factory chief executive Karen Hubbard, at 75th, is the only woman ranked in a top FTSE job.

The retail ecosystem is evolving fast

There are 23 new entries in this year’s 100, including those at the helm of emerging retailers and powerful direct-to-consumer brands such as Glossier founder Emily Weiss in at 77th and Nike chief John Donahoe at 33rd.

Chancellor Rishi Sunak is this year’s highest Retail 100 new entry in third place following a busy few months where he has introduced measures which will be critical for the survival of many firms during this difficult period.

Among the most pertinent was Sunak’s decision to suspend business rates for 12 months to alleviate pressure on bricks-and-mortar retailers forced to close stores during the lockdown. His coronavirus interruption loan scheme for small and big companies has also proved a boon for many retailers, as has his measure to pay up to 80% of furloughed staff salaries until the end of July.

Alongside Sunak, new entries include eBay UK vice president Rob Hattrell and Notonthehighstreet.com chief executive Claire Davenport who feature at 50th and 97th place respectively. 

These businesses have been big allies to retail partners during the pandemic when eBay has offered to defer seller fees to support cash flow and Notonthehighstreet.com has launched a Small Business Supporter Campaign to champion entrepreneurs.

Allyship is also represented in tie-ups between big retail brands and new disruptive businesses. Deliveroo founder Will Shu has risen 16 places up the Retail 100, for example, following recent partnerships with the likes of Marks & Spencer and Co-op.

With the retail eco-system evolving to meet new demands, the role of the retail leader has also shifted.

It is the leaders who look after their workforce, maintain effective communication and who are a positive force and voice for the industry who have emerged as the real winners in the Retail 100. As the sector adapts to the ‘new normal’, now is the time to learn from them.