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Sector Skills Insights: Retail. Introduction The UK Commission is working to transform the UK’s approach to investing in skills to help secure jobs and.

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Presentation on theme: "Sector Skills Insights: Retail. Introduction The UK Commission is working to transform the UK’s approach to investing in skills to help secure jobs and."— Presentation transcript:

1 Sector Skills Insights: Retail

2 Introduction The UK Commission is working to transform the UK’s approach to investing in skills to help secure jobs and growth. Key to our ambition is the need to encourage greater employer ownership of skills, working to secure long term sustainable partnerships. This slide pack and accompanying evidence report present the case for more employers in this sector to invest in the skills of their people. It does so by presenting real-life, skill- based business solutions that have been used by leading employers to tackle the performance challenges they face and by drawing on examples of the investments being made by the UK Commission through its investment funds. There are several determinants of employers’ skills needs and training behaviour including firm size, strategy and location but it is by sector which the strongest variations appear. Hence this work focuses on the Retail sector. Slide packs and reports are also available for a number of other sectors from: Each of the sectors are important to the economy in terms of employment, productivity or their future potential.www.ukces.org.uk For information about this slide pack and accompanying report please contact: Zoey Breuer, Source information can be found in the notes section of each slide

3 Storyboard What key skills challenges are being faced? Why retailing is important to the UK economy and labour market today The performance challenge: Attracting and retaining talented individuals The performance challenge: raising skills and investing in the workforce The performance challenge: Improving management quality 3 Growth through skills: Making best use of the existing training infrastructure Growth through skills: securing success through people management 3 Benefits to Business: Securing the future of the sector

4 What key skills challenges are being faced overall? Increasing consumer affluence which has given the consumer wider access to a range of retailers especially so via the internet, made them increasingly demanding of customer service, and made them less loyal to particular retailers. The challenge to retailers is to provide a more enticing retail environment which will attract and retain customers. Whilst rising to these challenges is not solely a skills issue, skills are a vital element in improving the competitiveness of retailers. The sector is dependent upon customer service workers. Given the scale of employment in the sector, levels of labour turnover, and the projected growth in employment over the medium-term, the sector needs to attract a large number of people to work in the industry every year. The provision of training represents a win-win for employers: it improves the quality of labour available to the retailer, increases the attractiveness of the sector to would-be recruits, and helps with labour retention. 4 Skills lie at the heart of how retailers will respond to product market and technological developments to ensure that the customer offer is one which continues to appeal to the shopper, both in the UK and further afield. It is not just about sales and customer service staff. The sector needs a supply of highly skilled and qualified employees given increasingly sophisticated systems used by manage supply-chains, logistics, internet shopping, in-store operations, targeted marketing, etc.

5 Retail matters The sector today Retail contains some of the largest employers but also a long tail of micro- employers - with almost 2x the number of establishments found in other sectors Provides initial entry into the labour market for many young people; and is an important employer of women and people from ethnic minorities But, it is a relatively low pay sector with employment sensitive to labour costs The UK retail sector is the 3 rd largest in the world by sales (behind the USA and Japan). The UK leads the world as the most international retailer. Value of overseas shoppers in London alone is around £2bn p.a. and many retailers in other locations benefit from tourism The influence of retail extends beyond the sector: many large UK retailers also engage in manufacturing own label goods; and contribute to jobs in other parts of the economy e.g. logistics GVA per employee is £24,000 and sits well below both the all economy average and wholesale and retail figure of £37,000 Labour productivity is significantly lower than USA, France and Germany The average R&D investment per retail firm in the UK top 1,000 was £15 million. Employs 2.8 million people (about 10 % of all employment) in almost 300,000 establishments Contributes 10% to overall UK GVA and has a turnover of £1,211 billion Retail is changing... UK online retail sales grew by 21%, reaching £50 billion in 2009.

6 The sector today: international markets 6 Clarks reveals plans for India expansion The Somerset-based retailer currently has five stores in India and the firm is stepping up its expansion into the emerging market country. Clarks has entered into a 50/50 joint venture with Future Group and hopes the complementarity of the group’s knowledge of the Indian consumer and real-estate know-how, will see Clarks’ India expansion flourish. Clarks reveals plans for India expansion The Somerset-based retailer currently has five stores in India and the firm is stepping up its expansion into the emerging market country. Clarks has entered into a 50/50 joint venture with Future Group and hopes the complementarity of the group’s knowledge of the Indian consumer and real-estate know-how, will see Clarks’ India expansion flourish. Tesco now offers graduate traineeships which include working abroad through its Graduates China programme. CEO of Clarks International, Melissa Potter: “ Among international brands, Hush Puppies (managed by Bata) is the only brand with a strong presence in the premium segment. This leaves a huge untapped opportunity for Clarks." In Tesco’s stores in China, shoppers can buy pigs heads, chicken feet, sea cucumbers and turtle. Tesco announced plans to quadruple sales in China to £4bn within five years. Asia is shaping up to be the crucial engine room of growth for the world's third largest retailer - already contributing 16 per cent to Tesco sales and 13 per cent of profit after just 11 years. Since 1905, TM Lewin has been sending its shirts around the world by mail order. Over the years, the company’s range of work wear became popular in Japan, Australia, the US and Europe and by 2009 its home shopping department was shipping to 163 countries around the world. “ Mail order has always been a core part of our business, and currently accounts for 15% of our turnover,” (Robert Isaac, Director at TM Lewin) “Our first store outside the UK was in Dublin, followed by five stores through our franchise partner in Singapore.”

7 Retail matters: Imagine where it could be tomorrow But there is no “one size fits all” approach Retailers of different types (e.g. the niche retailer, the discounter, the large chains, etc.), in different sectors of the market (e.g. clothing stores, food stores, etc.) will have a demand for different skill mixes. Particularly important for SMEs to recognise future challenges and opportunities and the implications for their own business and staff. The sector recognises talent as a source of competitive advantage Firms and individuals invest optimally in their skills Employers collaborate on, lead and own skills solutions to their sector’s performance challenges in pursuit of mutual gain Retail will continue to provide significant employment over the medium-term, despite economic downturn. For the UK to maximise potential gains, need to: continue to implement technical change in all areas of the business further capture foreign markets capitalise on benefits which flow from technical change (e.g. using customer data to increasingly target sales) realise the efficiency gains which technical change potentially provides improve customer care standards, especially in new areas such as on-line sales ensure that the skills are in place to bring about the above

8 Retailing matters: Imagine where we want to be tomorrow A future where: 8 Effective management of innovation – the strategic vision Investment in new retail processes Skills development to harness the potential of new innovations A work environment where employees are committed Ensuring high levels of customer service Improved organisational performance (higher sales, higher margins)

9 Changing place and face of retail But, SMEs face increased challenge from larger retailers who have incorporated specialist areas into their product lines and offer online retailing. Retailers need to provide an attractive and competitive offer - the key elements involve: offering a variety of goods and services merchandised attractively and innovatively effectively marketing the range of goods and services on offer in a consumer market which emphasises value for money maintaining price competitiveness by carefully managing the supply-chain and looking for efficiency improvements at every stage of that process finding a wider variety of channels through which to sell produces (mail order, on-line, in- store) and reducing location constraints (e.g. home deliveries from shops) improving customer care standards, especially in new areas such as on-line sales AND, ensuring that the skills are in place to bring this about... Surviving in today’s value-minded, aggressively-discounted, convenience-focused market means reappraising how to compete and doing things differently... Where you can compete and need to focus your efforts is in three core areas: Experience, Service and Specialism. (Mary Portas, Portas Review 2011) There is potential for overseas expansion and significant sales growth, including online sales, for UK retail over the next five to ten years Retail innovation requires skills: specialist or technical, to foster a culture of innovation, management and leadership, and innovation specific skills - especially for SME’s

10 The Performance Challenge: Challenges for Retail Low carbon agenda The low carbon agenda also has implications for the sector in how it deals with the fuel costs associated with its supply chains, energy costs within stores, and how to deal with packaging of goods. Again, these have skill implications. Demographic Change Demographic trends potentially affect both labour supply and the customer base. The ageing of the population also creates demands in terms of what retail services are delivered (e.g. home deliveries). Globalisation Already, UK employers are capturing international markets, but retailers based abroad are penetrating UK markets, too. Competition Multi-channel retailing allows people to be more discerning. Information is often more readily available about price and relative quality to the would-be customer. Retailers need to constantly appraise their customer offer relative to the competition. There is evidence that employers in the sector are responding pro-actively to some of these challenges, for example in innovations in customer service and meeting the challenges of an increasingly global economy, and that skills demand and utilisation is being effectively managed to meet these challenges. The persistent performance challenges: Management quality Attracting and retaining talent Investing in workforce skills Engaging with the training infrastructure

11 The performance challenge Management quality Innovation, the accompanying technical skills and understanding, and investment in R&D required to bring it about, are to be critical to the success of the sector [Case Study][Case Study] Globalisation and operation in international markets will require managerial and leadership skills as well as language and communication skills. Meeting strategic and tactical management skills needs is central to instigate and deliver change brought about by innovation and globalisation in retail: strategic skills to see where the sector is heading and how to get there tactical skills to ensure that the vision is delivered through effective operational management There are concerns that management skills are not being sufficiently developed in smaller retailers, suggesting a dual approach in needed: Higher level qualifications to assist with the transition from shop-floor to management To identify, train and retain those with potential so managers can be recruited from the shop-floor Improvements in productivity or efficiency may require new patterns of work organisation and the adoption of high performance working practices (e.g. multi-skilling) The extent to which the workforce is over-qualified or over-skilled is just above the whole economy average, suggesting there is further scope to use and nurture talent Evidence from the broader wholesale and retail sector suggests below average performance on 3 out of 4 of the HPW indicators, these are: flexible working, task variety and task discretion For wholesale and retail, skills shortage vacancies for managers is 9% compared to 5% for the whole economy Replacement demand for managers, directors and senior officials in retail expected to be 140,000 ( ). Strong management of supply chain skills is essential. 64% of managers and professionals are without L4 (39% all sector average)

12 Case study – Morrisons The benefits Norman Pickavance, HR Director, Morrisons said: "We believe it is vitally important that industry and education sectors deliver vibrant new solutions which enable people to keep developing and gaining qualifications whilst they learn...Our pathways for career development see young people progress from shop floor to the top floor, gaining relevant, practical qualifications as they go and the corporate degree programme is part of that picture...Graduates who successfully complete the three-year programme should be offered a permanent role within the business that allows them to progress their career as they choose, whether in food manufacturing or retail." "Over 30% of our top management started their career on the shop floor and ¼ of our operating board started with us, aged 17. We know it is an approach that gives us a strong culture, a committed workforce and a competitive edge, going forward." The company Morrisons, the UK’s fourth largest employer. The company already currently employs around 40, year olds and has 3,500 employees set to achieve retail Apprenticeships. The approach Morrisons has developed its own BSc course with Bradford University Management School to ensure it is able to capture the high level skills the company requires. It The three-year earn as you learn programme is a mix of block learning at the School, distance study, on the job work experience and work based projects in the food manufacturing division business. The corporate degree builds on an existing partnership between the university and Morrisons. The School advises on in-house training programmes for Morrisons Academy and delivers post graduate training for middle and senior managers who can go on to MBA study. "We've always focused on training our own”

13 The performance challenge Attracting and retaining talent In retail, projected demand for skills is associated with the need for strong management, but also the emerging need for: Technical skills to support process and product innovation and technical led change ICT, financial, and marketing skills (typically in high demand in other sectors) to optimise the use of technical change and process High quality customer service skills, including use of product knowledge and advisory skills, as a result of raised competition and consumer expectations But, looking ahead at changing demand for skills, the general trend is towards people being higher skilled. (using qualification as a proxy for skills) And, retailers of different types (e.g. niche retailer, with different product markets (e.g. clothing stores, food stores, etc.) will demand different skill mixes from individuals and across the firm. Skills will need to keep up with change, and drive change Substantial investments in new technologies and premium shopping locations requires commensurate investments in people Multi-channel retailing in which retailers operate in a number of different ways including physical stores, online sales, mail- order and various delivery service arrangements. Multi-nation retailing creates the challenge of marketing existing products to new markets Currently, the sector can more or less meet its current demand for skills.

14 The Performance challenge: Attracting and retaining talent The share of people in the sector with higher skills is considerably lower than in the economy in general and the skills make-up of the sector is set to remain lower than that of the whole economy, BUT In 2010, roughly 1 in 8 jobs were held by people qualified to QCF 5 and above; this is anticipated to rise to 1 in 5 by In addition, it is expected that for sales and customer service occupations, around 565,000 positions will need to be filled in order to replace workers exiting ( ) Any upward shift in demand, and the ongoing issue of replacement demand, has implications for: attracting, retaining and investing in talent. Employers report that skills shortages (when recruiting or in current workforce) not only mean an absence of those skills but also affect existing workers. 82% of employer’s reporting retention difficulties said that they create an additional strain on management because of covering the shortage of staff (79% whole economy). 84% of employers who reported hard to fill vacancies reported an impact on the workload of others (82% whole economy). The share of the workforce with higher skills is rising The share of the workforce with no qualifications is shrinking The sector has relatively high levels of labour turnover (churn) 1.9 million job openings are anticipated between or 193,000 per year Investment in both innovation and people is needed to make the sector a sector of choice for talented individuals - supporting the virtuous circle of increased competitiveness, profitability, and improved working conditions

15 Case study – The Skills Place and Work Zone Skills infrastructure for retail / local solutions The Skills Place – Newham provides a unique and flexible recruitment and training service, situated inside Westfield Stratford City shopping centre. Providing tailored services to candidates, independent stores and restaurants as well as many of the big names. The Skills Place – Newham is provided in association with Seetec, Westfield, the London Borough of Newham and the National Skills Academy for Retail. The Skills Place provides: Work Zone works to attract talent to Westfield London. The project took shape under the name of the WhiteCity Works partnership was formed between Westfield London, the London Borough of Hammersmith & Fulham, JobCentre Plus, Ealing, Hammersmith & West London College and Tendis. London Borough of Hammersmith & Fulham have partnered with Ealing, Hammersmith & West London College, Job Centre Plus and Westfield London to provide a recruitment service for retailers to fill their jobs locally. Support for candidates includes work specific training, advice on interview techniques, work trials and help with the initial childcare costs for local residents who secure jobs at Westfield London. Work Zone is situated on site at Westfield London – based in the Shepherd’s Bush library and online. “working with Jobcentre Plus through the Work Zone was a positive experience, which helped us to target the Westfield recruitment specifically to local unemployed people…. We were able to fill all vacancies for the opening” (Sue Solly, Marks and Spencer, Westfield London) Training courses: ApprenticeshipsRecruitment Pre-employment training One day - specialist customer service Mary Portas' Masterclasses Compliance courses e.g. H&S Courses designed to company needs At intermediate and advanced levels, in; retail, customer service, business admin, team leading, warehouse and storage, management, IT professional, IT application specialist and hospitality. In partnership with Newham Workplace we provide a comprehensive recruitment service from next day starts to bulk recruitment programmes.

16 The Problem BAA set up Heathrow’s Retail Academy in 2004 to support retail businesses who were facing severe challenges in recruiting and retaining people with the right skills – a challenge likely to increase with the opening of Terminal 5 in 2008 and the continuing development of Heathrow. The Approach The Retail Academy brings together Heathrow, our retailers and a range of service providers, who include training and recruitment companies and local charities. It also provides Heathrow’s retailers with a range of bespoke services to help attract, retain and develop staff. The ‘Routes to Work’ programme gives businesses the opportunity to access pre- screened, work-ready applicants. Continuing development is offered through Intermediate Apprenticeships and Advanced Apprenticeships in: retail, customer service, administration, team leading, management, hospitality and warehousing; plus a Level 5 Diploma in Management. The Benefits Case Study – Heathrow Retail Academy Attracting and nurturing talent Routes to Work and other Academy support initiatives have helped to place almost 2,000 staff in Heathrow’s retail units since 2004, of which 302 were previously unemployed. The Academy’s six-monthly employer survey reports: 100% of employers value the qualification that their staff are undertaking 88% consider the standards of the programmes fully meet organisational needs. Retention rates amongst learners on Academy programmes - far higher than the airport average. A real difference to local skill levels - 80% of learners live within 5 neighbouring boroughs Puhalaya Baskaran, apprentice with Travelex. Puhalya first completed her Apprenticeship, followed by an Advanced Apprenticeship, in Customer Service, and has now completed the Management Advanced Apprenticeship. Her commitment has paid off, and Puhalya has now progressed on to the company’s development programme to become a terminal Manager – as well as a mentor for new learners. Awarded a “Big Tick” for its employability programme at the Business in the Community’s annual Awards for Excellence. A major employer delivers accredited qualifications to other employers and their staff.

17 Performance Challenge Investment in workforce skills Looking at who receives training now: The greatest difference between the sector and the whole economy is for associate professional and technical occupations (22.3 per cent received training in retail compared to 35.3 per cent in the whole economy). In sales and customer service occupations (the largest occupational group in retail) training was provided to 18 per cent of employees in the sector compared to 19.4 per cent of this group in the whole economy. Looking at what training is received: Retail employers are less likely to train towards a Level 3 or 4 qualification (L3, 12% of employers compared with 16% whole economy; and at L4, 5% of employers compared with 12% whole economy)....current skills gaps and lower levels of investment at L3 and above mean retail is on the back foot when it comes to ensuring future skills needs are met Demand for skills at intermediate level and above is set to increase... For the sector to grow, multi-skilling is becoming increasingly important The mix of skills is key to the flexibility in how they can be used.. Could employers do more to keep their business competitive? Learning and development activity suggests they could. 45% of employees in the sector received training in the previous year is lower than the figure for the whole economy (53% overall), meaning 55% of employees in the sector did not receive training. Could productivity be higher? Are workforce skills contributing to low productivity? GVA per employee stood at £24K in 2010, well below the whole economy average, and wholesale and retail overall. Employers reporting skills gaps amongst their workforce / that staff are not fully proficient in their role (15% of employers) is above that of the whole economy (13%), affecting 6% of the workforce compared to 5% in the whole economy.

18 Performance Challenge Investment in workforce skills Is the quality of training good enough? Evidence suggests it could be a lot better. Spend on training for the wholesale and retail sector is has a lower than average spend per trainee, and per employee Of all the wholesale and retail establishments that provided training, only 35% trained staff towards nationally recognised qualifications, lower than the economy average of 43% What are the barriers to investing in skills? Evidence suggests signals lower than average engagement with external training provision. Employers in retailing are less likely engage with external training providers than employers in general: 44 % of retailing establishments had no contact with external providers (29 % average for all employers). The sector benefits from a substantial support infrastructure available to employers looking to develop skills Higher Education departments that specialise in retail management Apprenticeships provide initial training to people entering the sector National Skills Academy for Retail provides advice and guidance to employers and employees about their training needs Investors in People provides a means of managing people development for the benefit of the company. This sees skills as part of a wider set of HR policies to help attract, retain and effectively deploy employees However, when employers in the sector do engage with external provision their satisfaction rating of the provision is similar to that for the whole economy. Employers testify to the business benefits of these initiatives

19 Case Study – Badham Pharmacy The Company Badham Pharmacy Ltd has been in operation since October Today with eight branches in Cheltenham, Churchdown, Evesham and Bishops’ Cleeve, the chain of retail pharmacies remains family run. The business employs over 100 staff, both full-time and part-time and has a turnover of just over £9 million. The Approach Badham Pharmacy decided to go for Investors in People accreditation in It was felt that The Standard would set a formalised precedent for their employees’ development, especially in terms of training – a key element to the business’s success. In 1999 the company was a finalist in the British Business Association Awards for its excellence in training. It was successfully reassessed in The Benefits Since achieving Investors in People recognition, the company has benefited from significant improvements in employee relations. Badham Pharmacy has also seen a significant increase in turnover. “We now have closer contact with our staff and are committed to being more involved with their development and well-being. This means that all our employees, both retail and ethical, now take a greater interest in the business – and are more motivated and satisfied in their work. “As our staff are happier, they not only provide a better service to our customers, but also are better able to present the company’s image to customers which ultimately enhances our organisation’s reputation.” (Jean Badham, Managing Director) Investors in People offers the opportunity to tackle a wider set of employment issues than training and skills so that employers can obtain the most from the skills investments they make.

20 Case study – The National Skills Academy The Organisation Whether it is providing information in relation to continuing training to existing staff or information about training new entrants, the National Skills Academy for Retail provides a national resource for employers and employees (including the provision of pre-employment courses for those wishing to enter the industry) The Approach The National Skills Academy for Retail supports the development of locally managed retail skills shops which are operated on a day-to-day basis by a partnership of local retailers, developers, training providers and other stakeholders which together deliver high-quality training and advice. Retail skills shops are one- stop, walk-in centres based on high streets and in shopping centres, operated by trained staff who offer free advice and suggest courses and learning opportunities to retail employers, employees and those seeking to work in retail. Some operate virtually. The Benefits The National Skills Academy can reach out to small employers too, often by bringing them together. For example, as part of a project in Clitheroe, retailers were invited to apply for free training on how to make a shop window that grabs customers’ attention and draws them in. Ten retailers attended the training course conducted by Preston Retail Skills Shop. Over the day attendees learnt how to use creativity and technical skills to display their products and stores to maximise sales and entertain passers-by. Employer involvement is at the heart of the National Skills Academy for Retail’s approach. Big names such as Debenhams, John Lewis Partnership, Marks & Spencer, Ryman and Boots support this initiative. The network of retail skills shops to: Provide access to world-class skills and business support for retailers Drive for professional, rewarding careers and skills development Create a consistent national approach for training and skills Attract talented people into the sector

21 Investment in workforce skills Benefits to business While output of the retail sector has continued to grow in the face of the downturn, the ability to capitalise on the recovery will be enhanced by having access to the right skills. For larger employers, a skilled workforce allows them to: –manage staff retention; –develop careers for employees; –acquire new skills as needed to realise arising opportunities; –grow their business; –meet and exceed customer expectations. Evidence across a number of sectors suggests that employers who invest in training are more likely to survive than those who don’t..... And, what is more, the productivity gains for firms from investing in training are seen to be higher than the increase in wages experienced by employees

22 Whilst, firms in the UK that don’t invest in training Are on average twice as likely to fail In the Construction four times as likely to fail In the Transport & Comms sector are twice as likely to fail In the Retail & Wholesale sector are twice as likely to fail In the Manufacturing sector are twice as likely to fail In the Hotels & Restaurant sector are nine times as likely to fail Training raises firm survival and performance rates

23 Growth through skills Securing future success Across the sector, raising skills is key to raising performance, but while there is no silver bullet, a mix of actions which push and pull in the same direction can help. Employer leadership in the development of solutions and then taking ownership of those solutions is fundamental to their success and sustainability. 23 Sources of investment are available to support the implementation of solutions led by business on behalf of the sector. The Employer Ownership pilots offers all employers in England direct access to up to £250 million of public investment over the next two years to design and deliver their own training solutions. The Growth and Innovation Fund (£9 million invested so far, £29 million to invest in ) gives priority to solutions for the sector e.g.: Employer commitment and investment in Apprenticeships Creation of employer networks to overcome skill problems Employer-backed proposals for other skills solutions such as: management and leadership; professional standards; high performance work practices incorporating people development (e.g. Investors in People). Information and business advice is also important as a solution. Ultimately this is trying to catalyse sustained investment in the development of the sector’s workforce led by employers which lies at the heart of an enterprising and dynamic nation.

24 Growth through skills Securing future success Apprenticeships Given levels of replacement demands employers need to attract new entrants. Apprenticeships often prove to be an ideal means of attracting people suited to a career in retail. Research by the University of Warwick demonstrates that employers which invest in Apprenticeships in the retail sector report that they are able to: attract people ideally suited to a career in retailing shape the learning and attitudes of work of young people, often in their first job, to meet the needs of the business hold onto people they have trained themselves for longer so reducing labour turnover develop a pool of labour from which they can select people for more supervisory and junior management positions recoup the costs of their training relatively quickly after the apprentices have completed their training It is not surprising that when firms have invested in Apprenticeships they are glowing in their assessment of them. “I am a huge fan of Apprenticeships because I have seen what they do for individuals and what they do for my business. The fact is everyone wins” (Sir Terry Leahy, former CEO Tesco) In 2012, the National Apprenticeship Service and SkillsmartRetail launches the Retail Apprenticeship Training Agency. The programme will make £1,500 available to small & independent retailers willing to take on 16 to 24 year olds as part of a structured on-the-job learning programme.

25 Growth Review implementation update The plan for growth measures to support retail include: support thriving town centres, simplification of regulation and licenses for businesses, extension of the small business rate relief holiday, and work to remove regulatory barriers to increase cross-border online retail. In addition, Government is working with retailers to ensure that the skills system is fulfilling sector needs through pre-employment training and encouraging take-up of retail apprenticeships. Investors in People The share of retail establishments accredited to IiP as more or less the same as the average across the economy as whole. This indicates that there is considerable scope for further engagement with IiP across the retail sector. Investors in People provides a framework within which employers can develop their skills strategies in support of their product market strategy. IiP offers the opportunity to tackle a wider set of employment issues than training and skills so that employers can obtain the most from the skills investments they make National Skills academy for Retail The main Sector Skills Council for retail is Skillsmart Retail. Skillsmart Retail leads the National Skills Academy for Retail. The retail skills shops are run through partnerships of local retailers, training providers, developers and other interested parties. For retailers, the skills shops give advice on training and business development, as well as Apprenticeships and programmes focussed on particular aspects of retail, primarily management, customer service and merchandising and replenishment. The National Skills Academy for Retail also provides short training courses on law and health and safety for retailers and delivers the Mary Portas Masterclasses designed to give retailers the skills they need to develop their businesses. Growth through skills Securing future success

26 Key messages In retail, many future jobs will be in sales and customer service, but the demands of these jobs are likely to increase as more sophisticated IT systems are adopted and higher levels of customer service are required There is strong demand for managers and professionals - this is growing given the structural changes taking place in the sector (multiple channel retailing, complex supply chains, moves into foreign markets, the need to drive up productivity, etc.) In general, the sector is looking to drive up productivity levels alongside large- scale technical change – the skills base needs to be raised to ensure success in doing this Labour turnover is an issue for the sector – this negatively affects employers investments in the skills their workforce and employees are unlikely to make the investment of time and effort to train without prospects for career progression or getting something out of training / skills development By providing training and skills development in the context of an employment relationship which recognises the importance of career progression, there are benefits to both employer and employee Work with employers to transform the UK’s approach to investing in skills of its people to secure growth and prosperity. More information about the UK Commission’s investment funds is available herehere


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