What: FTSE 350 retailers achieve 42% female board representation but struggle to reach the 40% women in leadership target, with only half of major retailers meeting this goal.

Why it is important: The data highlights a critical challenge in translating boardroom diversity into executive-level representation, affecting how retail organisations make strategic decisions and understand their customer base.

The latest FTSE Women Leaders Review reveals a complex picture of gender diversity in UK retail leadership. While companies have made significant progress in board representation, with women occupying 42% of positions across major retailers, the transition to executive leadership remains challenging. Only half of the 30 major retailers examined are meeting the target, despite a voluntary goal set in 2022 for 40% representation by year-end 2025. The private sector shows promising signs, with women making up 36.8% of leadership roles, slightly outperforming FTSE 350 companies at 35.3%. Notably, the Co-operative Group stands alone with women in all four top positions - chair, senior independent director, chief executive, and finance director. However, the volatility in year-to-year figures, influenced by small team sizes and individual departures, underscores the fragility of progress. The sector's 70% achievement in having women in key leadership roles, while significant, still lags behind the FTSE 350 average of 77%, indicating room for improvement in retail's journey toward gender parity.

IADS Notes: The retail industry's approach to gender diversity has undergone significant transformation since late 2024. Walmart pioneered a strategic pivot by maintaining inclusion practices while removing explicit DEI language, achieving strong market performance. This contrasts with Target's experience, which faced a USD 10 billion valuation loss following controversies in February 2025. The emergence of the FAIR framework (Fairness, Access, Inclusion, and Representation) has offered retailers a new way to balance inclusive practices with business performance. The luxury sector notably diverges from mass-market trends, with brands like Prada and Gucci maintaining explicit DEI commitments despite market pressures, demonstrating how different retail segments approach diversity initiatives according to their specific market dynamics and customer expectations.

With controversy around DEI swirling, how gender-diverse are retail executive teams?