Does a Gender Pay Gap Exist in Retail?
Although the gender pay gap in retail appears smaller than the national average, many women in the industry believe they are paid less than men. This perception gap is a significant issue for employers, even where the actual pay difference is relatively modest.
What Do National Studies Show About the Gender Pay Gap?
A recent study reported by The Guardian found that the gender pay gap for workers under 29 has narrowed to just 5%. While still frustrating for women, this represents a major improvement compared with previous years.
However, the gap widens dramatically with age:
- Women aged 50–59 face an average pay gap of 27%, according to the Government’s Women and Equalities Committee (March 2016).
This raises an important question: What does the gender pay gap look like in retail?
What Does the Gender Pay Gap Look Like in Retail?
Retail has traditionally employed a higher proportion of women, making it a useful sector to examine. Recruitment consultancy RHR surveyed over 1,000 retail managers and professionals to understand perceptions of pay equality.
What men think
- The majority of male respondents believe their own company pays men and women equally.
- Slightly fewer believe the industry as a whole is equal.
What women think
Women made up 60% of respondents and their views were very different:
- 53% believe women are paid less than men in their own company
- 60% believe the industry overall pays women less
This highlights a major challenge for employers: many women feel they are being paid less, even when employers believe they are not discriminating.
What Do the Actual Salary Figures Show?
To test whether the perception matched reality, RHR analysed 1,000 actual salaries of retail professionals on its books.
The findings
- Women were paid, on average, 5% less than men across all age groups.
This is better than the national average, but the perception among female employees is that retail performs worse than the rest of the country.
Peter Burgess, Group Director ‑ Legal & Corporate Affairs at RHR, notes that this perception gap is a real problem for employers, even when the actual pay gap is relatively small.
Why Does This Perception Gap Exist?
Burgess suggests several reasons:
- Lack of transparency: Many employers still operate with unclear or secretive pay structures.
- Historic patterns: Retail has long employed more women than men, which can mask systemic issues.
- Market‑driven pay: Employers often pay “what they need to” to attract a candidate. If women, on average, negotiate less or accept lower offers, employers may unintentionally perpetuate inequality — and may not realise they are doing so.
Under the Equality Act 2010, pay secrecy clauses are unenforceable, meaning employees are legally allowed to discuss their salaries.
How Can Retail Employers Address the Issue?
Burgess recommends several steps:
- Consider open salary policies
Transparency helps build trust and reduces suspicion of unfairness. - Commission internal pay audits
Employers can conduct their own research and publish the results to demonstrate fairness or identify areas needing improvement. - Review pay‑setting practices
If women are consistently paid less because employers “pay what they need to,” this may amount to unlawful discrimination, even if unintentional. - Communicate clearly with employees
Perception matters. Even if the actual gap is small, employees who believe they are underpaid will feel undervalued.
Key Takeaways
- The gender pay gap for under‑29s is around 5%, but widens significantly with age.
- In retail, the actual gap appears to be around 5%, better than the national average.
- However, most women in retail believe they are paid less than men, a major perception challenge for employers.
- Transparency, internal audits, and fair pay practices can help close both the actual and perceived gaps.