Dunelm became the latest retailer this week to offer its staff the option of working a four-day week.
The homewares retailer is currently trialling a new shorter hybrid working model across select departments with the view to expand the initiative at a later date.
It also emerged last week that Sainsbury’s is also giving some staff more flexibility, which allows them to work their 37.5 contracts in a seven-day week.
According to The Times, this means that means some head-office workers could work on a Saturday and take a day off in the week, or could work longer weekday hours, should they choose.
Dunelm and Sainsbury’s joins several UK retailers including Morrisons, M&S and Superdry that have shifted to a four-day week as the campaign for widescale adoption ramps up.
Late last month the results of the world’s largest pilot study on the working practice were revealed and a whopping 92% of the companies taking part in the trial have vowed to continue with the new working pattern.
The biggest takeaways included improved work-life balance, increased productivity and lower stress levels.
With the topic front of mind for a lot of us, Retail Gazette takes a look at whether the four-day working week could soon become a new reality for the industry.
The trailblazers
Morrisons was the first major UK retailers to shake up its working policy and introduce the four-day week back in July 2020.
The move saw weekly working hours reduce from 40 to 37.5, which can be complete over four days instead of five.
Its policy, which only applies to head office employees, comes with a small catch that staff are required to work one Saturday a month.
Superdry followed suit last year with its people director Cathryn Petchey sharing on LinkedIn the move had “led to better outcomes for its business and for our colleagues’ wellbeing”.
At the beginning of the year, M&S offered over 3,000 full-time and part-time retail managers the option to work compressed four-day weeks or nine-day fortnights – with the latter becoming the most popular choice among the retailer’s staff.
“The response from colleagues has been fantastic,” says M&S Group HR director Sarah Findlater, adding that even staff that have opted to stick to their usual working pattern appreciate having the choice.
The store-wide roll-out of Worklife, the retailer’s flexible working policy, followed a successful trial across 100 stores.
“We’re also finding that especially for those colleagues with caring responsibilities, either looking after elderly parents or young children, the flexibility is making a real difference,” says Findlater.
In fact, 79% of the retail managers that participated in the trial stated their new work schedule allowed them to balance their work/life commitments and 75% agreed it had a positive impact on their family life.
Findlater shares the introduction of Worklife has become a great talent retention and attraction tool for M&S.
A greater push for flexibility
Retail has been one of the last industry’s to adopt flexible working. Findlater explains the fast-paced and hands-on nature of retail had traditionally made it difficult to roll out alternative working models.
However, she adds the industry’s attitude towards flexibility shifted massively during the pandemic when head office staff were forced to work from home.
Superdry’s Petchey says the recent fragility of retail has made it even more challenging for retailers to attract new talent and engage current employees, forcing them to explore options “they wouldn’t have thought of even five years ago”.
Flexibility is the top reason why candidates are leaving and accepting new roles, says Page Executive partner Nicola Wensley, adding that the adoption of hybrid and remote working has had a transformative impact on hiring in retailers.
Wensley notes that Curry’s decision to swap its headquarters for flexible office space last year saw its reputation soar.
“Businesses who adopt progressive policies, such as the four-day working week, are instantly more likely to be seen as employers of choice for candidates,” she claims.
Wensley believes the introduction of the shorter working week on a full-time salary would provide retailers with “a distinct advantage during the hiring process”.
However, she adds the way retailer’s manage the implementation is key in order to prevent an exodus of talent later down the line if the business was to change its stance.
The HQ vs shop floor divide
Some retailers, such as Dunelm, Morrisons and Spain-based fashion brand Desigual, have opted to give only head office staff the option of a four-day working week.
At first glance, moving corporate employees, who usually work Monday to Friday, seems an easier task in comparison to store and warehouse workers, which require almost round-the-clock coverage.
However, by doing so, Global Data lead retail analyst Sofie Willmott says retailers are at risk of creating friction between its head office and shop floor workers.
“If [retailers] are going to treat it differently for head office and store staff, there is a risk it could cause upset and have the opposite effect of what they want to achieve,” she says.
Superdry took a different approach to its compressed four-day weeks, and only introduced the policy to full-time staff that work in stores, although its head office employees have access to a different flexible working policy.
The move acted as a post-pandemic boost for retail staff who had a “rough time” during the store closures in lockdowns, say Petchey.
The results have been “amazing” for the business, she says, which has seen reduced turnover, higher staff engagement and better talent attraction.
M&S joined Superdry in introducing the shorter workweek for its store staff, providing the option to its retail managers.
“My aim is for everyone at M&S to have the best possible work/life balance so I felt strongly that working in-store shouldn’t mean missing out on important family and life moments,” says Findlater.
“That meant coming up with a scheme that gave colleagues more choice while also protecting the quality of our stores, and maintaining the fantastic customer service we need to deliver,” she says.
However, Petchey admits that introducing flexible working policies for store staff requires a “little more effort” than head office given the hands-on of store roles.
One of the main considerations for the fashion retailer was ensuring there was management coverage and sufficient handover time between each shift, she says.
The compressed working hours meant that in some cases managers would be working longer than the shop’s opening hours but this allowed them “a bit more time [to work] behind the scenes”, says Petchey.
However, she points out that despite store staff working shorter working weeks, Superdry has not had to hire more staff.
Impact on shopping habits
Despite the recent buzz, the four-day week is a relatively new concept and it is estimated that fewer than 200 companies in the UK have made the change.
It might take a while before there is widespread adoption but one thing that’s clear, is an extra day off means more time to socialise and shop.
In 2021, ParcelHero estimated the adoption of a four-day week could see an extra £58bn injected into high street retail.
The estimation may not have factored in the cost-of-living crisis which has seen retail sales volumes drop 5.7% year on year in the three months to January 2023.
However, ParcelHero head of consumer research David Jinks says four-day workweeks are still likely to create a virtuous circle.
“People will have more time to spend in stores and online on hobbies and DIY, which means a likely increase in spending on products from books and fishing rods to cross stitch kits and drills,” he says.
Recent ParcelHero research found people estimated they would spend up to 20% more on their hobbies and leisure attractions if there was a four-day week with no corresponding decrease in their pay.
Willmott agrees that sales would flatten out across the week, instead of being concentrated on Saturdays and Sundays as consumers shop on their days off.
However, she believes the biggest impact will be on consumers wanting more convenience across the shopping channels and faster access to their orders.
It seems that a four-day workweek not only benefits retailers’ recruitment and retention, it could also help stabilise volatile trading patterns.
One thing’s for sure, many across the industry will be watching trailblazers such as M&S, Superdry and Dunelm with interest. The success of their four-day workweek initiatives are likely to encourage more to take the jump.
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