Retailers have once again pulled out all the stops to look after consumers during 2022 – a year when customers and companies alike have laboured under burdens such as soaring inflation and the disruption following Russia’s invasion of Ukraine. George MacDonald celebrates the retail industry’s fantastic contribution

1. Helping customers cope with climbing costs

One story dominated the second half of 2022: the impact of the cost-of-living crisis, as everything from fuel to food rocketed in price. While the industry had to pass on some higher costs to customers at the shelf edge, retailers ranging from Iceland to Marks & Spencer and Morrisons to Primark all held or cut prices – particularly at the value end of their ranges. John Lewis spoke for many when it revealed it had been “forgoing profit” to help hard-pressed shoppers and suppliers during a challenging year.

2. Aid for Ukraine

Russia’s attack on Ukraine at the start of the year sent shockwaves around the world and precipitated massive disruption. Retailers acted swiftly to help embattled Ukrainians. Health and beauty giant Boots, for instance, made 1.4 million products available for the assistance effort, including first aid kits, PPE, baby products and basic toiletries. Kingfisher’s Castorama business in Poland provided goods such as generators, chargers and torches, and staff volunteered to help refugees at the border, while other retailers have launched charitable initiatives to raise hundreds of thousands of pounds for those impacted by the conflict. 

3. Looking after staff at the coalface

Retail’s frontline – and often lower-paid – staff were not forgotten as inflation hammered households. Retailers across the board hiked wages, continuing to put first the people who, during the pandemic, had gone above and beyond to show just how invaluable their contribution to communities was. Many retailers, including M&S, Sainsbury’s and Lidl, conducted unprecedented second rounds of pay rises during the autumn, rather than the usual one annual award, in recognition of their hard-working staff. Currys, for instance, has increased its base hourly pay by 15.6% over the course of this year. Its chief people officer Paula Coughlan said: “While we have a range of ways of helping our colleagues at this challenging time, we know that boosting base pay is the most meaningful action we can take. We really mean it when we say that colleagues are our magic ingredient.”

4. Community spirit

Through corporate initiatives and local stores, retailers once again proved to be great neighbours in local communities. Sausage roll specialist Greggs, for instance, opened its 30th outlet shop. The branches are typically opened in less affluent areas of the country and not only help the retailer avoid food waste but, in the words of chief executive Roisin Currie, also “tackle poverty, hunger and deprivation across all the communities we operate in”. Greggs expects eventually to have 50 outlet stores. Earlier this month, staff at Marks & Spencer’s Romford branch made headlines when they released a Christmas song with East 17 singer Terry Coldwell. Money raised went to an M&S Neighbourly partnership charity and the song reached number two on the iTunes chart.

 

5. Wellbeing and happiness

The last few years have been tough for many, and retailers have made sure that employees had access to wide-ranging health and mental wellbeing advice and services. Research by the Retail Trust this year showed that “more than eight out of 10 retail workers had experienced a recent decline in their mental health”. Leaders from retailers including Ann Summers, B&Q, FatFace and Next are among those supporting the industry charity’s work to improve wellbeing.

6. No COP-outs on sustainability

In such a difficult year for trading, it would not have been surprising if environmental initiatives such as efforts to combat climate change went on the back burner as businesses sought to protect their top and bottom lines. But retailers have kept up their drive to look after the planet, too. More than 80 retailers, including Aldi, Ocado and WHSmith, are backing the BRC’s Climate Action Roadmap to propel the industry and its supply chains to net zero by 2040. Just this week, in fact, at a time when retailers are scrambling to secure last-minute Christmas sales, DIY retailer Wickes unveiled new science-based emissions reduction targets including reducing its Scope 1 and 2 emissions by 42% by 2030.    

7. Commercial flair

Through all that the year has thrown at it, the retail industry has maintained a focus on commercial success. That is vital because unsuccessful companies can neither reward shareholders nor contribute as much to the health, wealth and happiness of the UK as employers, taxpayers and supporters of good causes. Business success ultimately underpins all the good that retailers do and plenty of companies, such as Next, Sainsbury’s and Tesco, have again demonstrated that British retail has plenty of fuel in the tank as they navigate torrid conditions. They, and others like them, will still be here and still be successful when the cost-of-living crisis is a fading memory.

8. Opening warm spaces

As energy costs climbed and winter drew in, retailers helped people avoid the choice of heating or eating. At Kidderminster’s Weavers Wharf shopping park, for example, empty premises have been used to provide a warm space for locals. Earlier this month, the Co-op donated £1m to community organisations assisting those suffering most from the impact of energy costs during the cold months. 

9. Backing Britain

As the UK seeks post-pandemic and post-Brexit recovery, retailers are doing their bit to spread the benefits of their success. Primark, for instance, is investing £140m in more UK stores and refurbs, creating 850 jobs. Chief executive Paul Marchant said: “The UK is our biggest market and, as we continue to grow and expand our business internationally, we remain as committed as ever to investing… Busy towns and cities benefit us all.” Morrisons, meanwhile, emphasised the importance of British farmers in the food supply chain by featuring ‘Farmer Christmas’ in its seasonal ad for the second year in a row. During the course of 2022, Morrisons’ farming initiatives included a sustainable beef and lamb scheme to “recognise, help and financially support beef and lamb farmers working to help the environment”.

10. Jobs for the future

Just as retail has traditionally provided opportunities to move from the shop floor to the boardroom, today the industry is nurturing the skills needed in an increasingly tech-driven world. Online fashion retailer Asos offers just one example of a business leaning into that future. In the summer, the etailer supported the launch of a fourth Assured Skills Academy in Belfast. Participants in the 10-week course will learn the skills to become Asos software engineers and are guaranteed a job interview with the retailer.

11. Innovating for customers

From new store models, such as Ikea’s small high-street shop and its plans to open next year in the former Topshop on Oxford Street, or cashless formats such as Tesco’s GetGo, through to new services such as rapid delivery or AI-informed personalisation, retailers never stand still – and certainly could not be accused of doing so in 2022. Despite all the challenges of the last few years, the industry has successfully striven for ways to remain connected to and better serve customers. 

12. Delivering a happy Christmas

Have you actually had trouble finding a turkey or seasonal bird for this year’s festive table? As Christmas approached, an outbreak of avian flu prompted headlines that the traditional main course would be in short supply. However, retailers have overcome the challenge by, for instance, promoting frozen lines or alternatives. There is a cornucopia of products available, food and non-food, at every price point – including money-saving products such as air fryers – for consumers to have a very merry Christmas.

Never mind Santa – thank you to our retailers whose resilience, adaptability and flair have offered further evidence this year of a world-class industry at its best. 

  • Don’t miss the best of the week – sign up to receive the Editor’s Choice every Friday