How to be an exceptional retail leader

Welcome to Retail Wrap-Up UK – your fortnightly dose of sector-specific news and insights, created by LinkedIn News UK retail editor Aaron Toumazou .

In this third edition, we'll be focusing on leadership.?

These are tricky times for retailers, and the criteria for what’s needed to effectively steer the ship has shifted amid unprecedented economic headwinds and technological advancements.?

In this month’s big read, we’ll look at how the criteria for retail leadership roles is changing, with insights from global leadership coach and chief executive of CEO consulting firm Beyond Unity , 史蒂夫 . Following that, we’ve opened the floor to members in the sector to find out what skills they value most from their superiors.

The big read

The challenges of retail leadership have never been more pronounced. Amid a landscape of surging mergers and acquisitions and leadership team reshuffles, a recent Business Insider article suggested the industry's top jobs have become the hardest to fill.?

In the UK, already this year, noteworthy reshuffles have dominated headlines in grocery retail, as well as household names including Wilko, Matalan, John Lewis and, just this week, Ted Baker. According to 光辉国际 ’s latest CEO tracker, in 2022 there were 42 new CEO appointments, with CEO hiring up 2.5 times that of the year before.

High turnover of leadership roles has roots in unprecedented change for the sector, caused by the pandemic and swiftly followed by a cost of living crisis. With growing technological innovations such as Web3 and AI to also get to grips with, there has been a shift in the desired skillset of those steering the ship.

Speaking to CEO coach 史蒂夫 – who talked at the World Retail Congress in Barcelona this week, themed around "retail leadership for extraordinary times" – he pointed to a four quadrants model that’s applicable to every business scenario, especially during unforeseen and challenging economic circumstances:

Business performance is focused on creating short-term outperformance, he told us, by firstly realising the truth about current performance and secondly taking full accountability for better trading results across the executive team.?

Business leadership, he continued, is helping to create a future pioneering "North Star", with the aim of generating new transformational growth in the medium term and "off the charts" business valuations in the long term.?

Then there is personal leadership, which is about enabling a leader to deeply connect with people at various levels of the business and to collectively establish new levels of accountability together – so 100 people lead rather than conventionally one CEO.?

And finally, personal performance, which involves addressing challenges around emotional awareness and prompt decision-making, so as a leader you can be more consistently positive and perform at your best.

As for the other ingredients that go into effective leadership, the need to innovate has not been forgotten. An inability to keep pace with where retail is headed has been considered instrumental to the plight of Tupperware in recent weeks, and some experts argue it has contributed to the recent underperformance of John Lewis.

"Truly successful leaders never lose the spirit of the founder or the hereditary values in their day-to-day business," Tappin told us. "However, traditional or slow processes need to be changed, including outdated thinking or old-school technological systems. Innovation is the ability to go beyond what anyone could imagine. It is a mindset that requires action to go way beyond competitors, which is necessary for the ever-changing retail landscape."

Tappin also highlights the need to attract and retain top talent – a priority for many more sectors than just retail right now. "Healthy remuneration packages are necessary for retailers to stay competitive and attract the best talent," he told us. "This should almost definitely include a package around the employee's health and wellbeing – gym membership, meditation practices and private healthcare – to ensure they operate at their best."

There is one retail leadership attribute, though, that stands independent of the macroeconomic picture. Data shows that an increasing number of those now occupying retail’s C-suite are challenging what has traditionally been a male-centric space.

Some 31% of CEOs appointed last year were women, making up 13 appointments in total – the highest number since records began. Posting on the statistic last month, retail maven Mary Portas OBE highlights that women drive 70-80% of all purchasing decisions, making a compelling case for new leaders to better reflect and represent customers.

Tappin concurs, hammering home the need for leaders to create teams that accurately represent their customers. "They must mirror their customers today and in the future in terms of age, diversity, segment and interests," he says. "Only then can they truly understand what their customers want and need."

What the sector says:

What are the most important attributes a leader can have from an employee perspective? When LinkedIn News UK put this question to the people working in retail, we identified several recurring qualities and skills.

Empathy

"With tech and AI changing how we shop, having that human touch makes all the difference. When leaders really get their customers, employees, and everyone else involved, they can make better choices, keep everyone happy at work, and have loyal customers who stick around." - Daniil Shcherbakov

"Empathy distinguishes remarkable retail leaders in this increasingly automated world. Understanding the needs of employees and customers, empathetic leaders foster loyalty and connection, promoting a thriving work environment and driving innovation." - Edward Frank Morris

"Leaders need to care for their employees and not just their customers' wants and needs. It’s vital that we treat each employee as a valuable contributor to the business, support them and listen to their feedback and ways to improve." - Shannon Daly

Understanding the customer

"What does a retail leader of the future look like? They focus on the customer, not price or speed of delivery … This means knowing the customer, understanding what they want and need, caring for these needs and valuing their custom. In short, going 'Old School', where the customer always comes first." - Kristien Wendt

"Customer experience will continue to be a critical factor in retail success, and a strong retail leader would prioritise understanding their customers' needs and preferences, and work to create a seamless and personalised shopping experience." - Paul Hargreaves

"Look after your staff and they will look after your customers. The staff are at the coal face and will have the knowledge about what drives customers' experiences. Finding passionate and emotionally intelligent staff and team members that can give customers a physical retail experience to remember is priceless and the benchmark of any good business." - MR CHRISTIAN

Adaptability

"The rise of AI, metaverse, and blockchain has changed the way consumers shop and interact with retailers, and leaders who can embrace and leverage these technologies will be more successful. " - Abz A.

"With the constant changes in the retail landscape, a leader who can adapt to new business models and navigate the industry's future is crucial. They should be able to pivot quickly, make decisions based on data, and keep up with emerging technologies like AI and the metaverse." - Noman Nazir

"The creation of a culture that embraces change, fosters innovation, and facilitates quick pivots is imperative. Empowering teams to take calculated risks and drive improvements is fundamental to fostering such a culture. Leaders must inspire and mobilise teams to explore new ideas, embrace calculated risks, and pursue bold moves." – Steve Jobling

Spotlight

What are your examples of trailblazing leaders? Read PR & Comms Specialist Rachel Allison 's post on how British Vogue editor Edward Enninful's push for diversity and inclusion is setting the bar for leadership across industries.

In the news

• The end of cash payments? – The deputy governor of the Bank of England warned that cash would become "less usable" due to the rise of online shopping and contactless payments. See Dina White ’s analysis of what retail payments could look like in the future.

• LVMH hits ￡500bn valuation – French luxury conglomerate 酩悦·轩尼诗-路易·威登集团 now sits tenth in a list of the top 10 companies in the world by market value. Leila Hurstel breaks down why the Louis Vuitton owner is thriving.

• Loyalty apps becoming bread and butter – GAIL's has launched a loyalty app in response to how customers interact with its products. Here’s why Gaby Laifer thinks every retailer should follow suit.

• Is the Tupperware party over? – The 77-year-old food storage brand faces mounting debt and dwindling sales. Read James Rimmer MBA FCMA MCIPS ’s take on how it could have adapted better to change.

• The rise of super-real 'fake' ads – New computer-generated visuals are making it increasingly difficult to tell what’s a real marketing campaign. Steve Salter looks at how AI could complement physical brand activations.?

Creators to follow

Theo Paphitis – Star of the BBC’s Dragons' Den and chairman of the Theo Paphitis Retail Group , comprising Robert Dyas , Ryman and Boux Avenue , Paphitis regularly posts about all things entrepreneurial.? Mary Portas OBE – Portas is one of the UK’s highest-profile retail experts. On LinkedIn, she draws on her own experiences in the sector to provide insights into trending topics and industry news. Paul Polman – Former 联合利华 CEO Polman is a champion of courageous leadership. Follow him for insightful posts on how to use business as a force for good.

Other LinkedIn Newsletters

• Get Hired UK – A fortnightly update dedicated to advice and insights on landing your next role and progressing in your career.
• Finance Wrap-Up UK – The latest financial news and insights from LinkedIn News UK finance editor Manas Pratap Singh .
• Tech Wrap-Up Europe – A digest of news, views and insights from the world of tech written by Sam Shead and Orlando Crowcroft

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UK Retail Editor: Aaron Toumazou

Creator Manager: Priscillia Mudiaki