If 2020 was a year of destruction, then 2021 was one of reconstruction and progress. But 2022 will put this to the test, warns BRC chief executive Helen Dickinson

Retail is back in the driving seat, or at least that is one interpretation of this week’s retail sales figures

Sales in 2021 were up almost 10% on 2020. Non-food was up over 15%, illustrating a major reversal of fortune for thousands of retailers, though off a lower base in 2020.

In 2020, we warned the government that without additional support, thousands of businesses, tens of thousands of jobs and many millions in tax contributions would be at risk. The government heard our call: from loan schemes to rent moratoriums, furlough to business rates holidays, the industry was given the support needed to survive.

“Our industry has a louder voice than we had in 2019 and we have collaborated more than we ever have”

But it was also through the gargantuan efforts of retail colleagues that the industry was able to adapt. A plethora of safety measures, changing consumer habits and the rapid expansion of digital consumers had to be integrated into systems, processes and strategies.

In 2019, online accounted for 31% of non-food retail sales; in 2021, it was 47%. Five years of digital growth was crammed into 18 intense months. It took countless hours of building and improving websites, taking orders, loading vans and delivering around the country. 

New practices were needed for everything – from customer service to vehicle maintenance. All this change and investment took place under the shadow of a health crisis that had spread around the world. 

While we should all take a moment to pat ourselves, and our colleagues, on the back, there are many headwinds coming in 2022

Entering retail’s next phase

We all had limited options on how to spend our money in 2021 and will soon find ourselves with more choice – and less to spend. 

Eating out, travel, live music and sports events are all set to boom this year, pandemic backdrop allowing. Meanwhile, rising inflation squeezes retailers from both ends, increasing the costs of labour and materials while reducing consumer demand. 

Consumers must contend with higher energy prices, higher National Insurance contributions and increased costs of living. The full costs of Brexit remain to be seen with physical checks on many goods being applied from July.

Our industry has a louder voice than we had in 2019 and we have collaborated more than we ever have. 

Labour shortages, the future of GB-NI trade and the exorbitant cost of shipping are all challenges we must face as a united industry. We must persuade the government, as we did during the height of the pandemic, to back UK retail, support us on these key issues and get out of the way when it needs to.

But we must also act together on the long-term challenges we face. Take climate change. The retail industry and its supply chains account for almost one-third of emissions associated with UK consumption. Our potential to improve the world we live in is enormous.

“Retail is a great British industry. The challenges it faces are huge but the power we can wield to tackle them together is even bigger”

Working with our members, the BRC launched the Climate Action Roadmap in 2020, aiming to make the industry – including its supply chains – net-zero by 2040. Given the gravity of the situation, one wonders why every retailer is not involved.

Diversity and inclusion is another issue close to my heart, as one of the all-too-few female chief executives in the industry, and one that is important to many retail leaders who think we can do better.

That is why we launched the Diversity and Inclusion Charter, supported by 70 retailers, which have pledged to take measurable actions to improve inclusivity in their businesses. 

While these 70 retailers account for a large proportion of retail workers in the UK, the number is still a long way short of covering all 3 million people who work in the industry.

Retail is a great British industry – accounting for 5% of the economy and 10% of its workforce. The challenges it faces are huge but the power we can wield to tackle them together is even bigger.

The industry did incredible things by working together during the pandemic. Imagine what we could do if we put our minds together to tackle the future’s great challenges, from sustainability to diversity.

Let’s make 2022 a platform for the next phase of our industry’s reinvention. 

Be Inspired logo

Be Inspired

Promoting inclusivity is core to Retail Week’s Be Inspired programme.

Established in 2016, Be Inspired breaks down the barriers for everyone in retail, regardless of age, background, gender, race, sexual orientation or ability.

Learn more and how you can get involved here.