Innovation of the Week is a subscriber-only series highlighting retail initiatives that have caught the eye of our team. Every week, we will bring you new ideas and case studies that link to the trends in our Retail Horizon 2024 reports – across consumer, technology, sustainability, and economy, policy and industry.
What is it?
The Co-op has committed to taking bold action on social mobility after publishing a socioeconomic pay gap report that revealed a mean 5.2% pay gap among its colleagues.
The Co-op is the first retailer to collect data using the Social Mobility Commission’s recommended method to measure and report on this issue.
As a result of the findings, it will now double down on its Social Mobility Plan, including campaigning for the government to make socioeconomic background the 10th protected characteristic under the 2010 Equality Act.
Also included in its commitment to action are more mentoring programmes, financial wellbeing support and an intersectionality development programme underpinned by the organisation’s social mobility taskforce.
Why does it matter?
Publication of the socioeconomic data builds on the Co-op’s work to provide greater transparency around pay gap reporting, complementing its existing ethnicity pay gap and gender pay gap reports.
Establishing this annual reporting process demonstrates a commitment to making a difference in this area of inequality, which is top of mind for many retailers.
“This is a truthful report of our business and, even though there is work to be done, I am proud that we are the first retailer to have carried out this research. It shows clearly that socioeconomic background, as a factor, can have a significant impact on progression and performance, but its influence on a person’s career is often overlooked by employers”
Shirine Khoury-Haq, chief executive, Co-op Group
Strategic implications
The UK has one of the poorest rates of social mobility in the developed world. As diversity and inclusion rises up the retail agenda, expect other retailers to follow the Co-op’s lead in finding ways to measure and address socioeconomic background to drive greater equality. This is also likely to become a focus for government.
Winning strategies
- Diversity and inclusion
- Nurture customers and staff
Retail Horizon 2024 is Retail Week’s exclusive strategic toolkit for subscribers.
Across four in-depth reports, Retail Week research director Lisa Byfield-Green and our team of analysts explore the most significant trends that will shape the sector in the year ahead across consumer, technology, sustainability, and industry, economy and policy.
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