THE LANDSCAPE OF RETAIL is as dynamic as it is demanding, characterized by fierce competition and a drive for innovation. And in an industry that thrives on understanding and catering to the majority of purchasing power – predominantly wielded by women – it’s paradoxical that men hold most of the leadership roles, especially in the C-suite.
A glaring gender disparity at the executive level in retail not only raises questions about equity and inclusion, but also points to a broader misalignment with market realities and consumer expectations.
When you look across all industries and the CEO roles at Fortune 500 companies, the number of women leaders has doubled over the past five years, according to media reports. But retail seems to be moving in the opposite direction. Some recent examples:
· GAP: SONIA SYNGAL WAS REPLACED BY MARK BREITBARD
· KOHL’S: MICHELLE GASS WAS REPLACED BY THOMAS WILSON
· VICTORIA’S SECRET: AMY HAUK REPLACED BY MARTIN WATERS
· STITCH FIX: KATRINA LAKE STEPPED DOWN AND WAS REPLACED BY MATT BAE
So, why, in an industry steeped in trends and transformations, does the norm of male-dominated leadership persist? My own observations and history hint at an amalgamation of reasons including changes in traditional corporate structures, implicit gender biases and a pipeline that leaks talented women along the way.
In addition, the retail sector, like many others, is guilty of fostering a “mirror-tocracy,” rather than a meritocracy, where executive leadership tens to sponsor and promote individuals who look and think like themselves — inadvertently maintaining the status quo.
This lack of representation at the top does more than just hinder gender equity. It can also severely impact Diversity, Equity and Inclusion (DE&I) efforts. Diversity in leadership not only symbolizes progress, but also catalyzes it, thereby influencing policy, company culture and practices within organizations. Without a diverse leadership team, retailers risk creating echo chambers, devoid of the diverse perspectives required to innovate and appeal to a broad customer base.
The impact of having more women in leadership roles extends beyond corporate walls to the market at large.
Women executive leaders bring diverse life experiences and insights, which can translate into more thoughtful and inclusive consumer experiences. Their leadership style, often collaborative and empathetic, can also foster a more inclusive company culture that values and nurtures diversity of thought, background and approach.
“ALTHOUGH THERE ARE MORE WOMEN CEOS TODAY THAN 10 YEARS AGO, THE RETAIL INDUSTRY CONTINUES TO LAG.”
And there are other dimensions to this issue that need to be considered. The presence of women in these high-visibility roles, for example, can have a profound domino effect by inspiring other women and providing tangible role models. This is critical in an era where more women are entering the workforce and seeking various pathways to leadership. Representation matters and seeing women in power can elevate aspirations and shatter perceived glass ceilings for others.
So, what can be done to optimize leadership pathways for women in retail?
To begin. organizations need to commit to a thorough audit of their policies and culture, identify biases and the barriers facing the career path of women — and then actively work to dismantle them. Mentorship and sponsorship programs are also crucial; they can provide women with the necessary guidance, exposure and opportunities to climb the corporate ladder. Moreover, redefining leadership qualities beyond the traditional, often masculine-associated traits to include skills and perspectives traditionally undervalued can also pave the way for more balanced and equitable leadership.
Accountability also plays a critical role. Measures such as tying executive compensation to DE&I targets could motivate leaders to make more concerted efforts towards fostering an inclusive and diverse leadership team.
In conclusion, having more women in leadership positions in retail is not just a matter of parity, but a strategic imperative. Women’s leadership has been shown to drive better business outcomes, including higher profitability and workforce engagement.
As retail continues to evolve, the industry must recognize that its greatest asset in navigating change and competition will be executive leadership that reflects the diversity and richness of its customer base. Bridging the gender gap in retail leadership could well be the linchpin in the sector’s continued success and relevance in an increasingly diverse world.