Australian fashion retailers City Chic and Forever New have reacted to an increase in both their gender pay gaps in 2024 compared to the prior year.
This is according to newly released data from the Workplace Gender Equality Agency (WGEA), covering the results for 7,800 individual employers and 1,700 corporate groups across various industries for the 2023-2024 season.
City Chic recorded the highest gender pay gap (GPG) across the fashion industry, with its median total remuneration GPG at 65.1 per cent, lifting from 57.4 per cent in the prior year.
City Chic’s average total remuneration GPG hit 67 per cent.
Meanwhile, Forever New’s average total remuneration GPG lifted slightly from last year to 58.5 per cent, with its median total remuneration GPG at 53.3 per cent. This is just up from 51.3 per cent in 2023.
Other brands recording gender pay gaps above 50 per cent include Seafolly (62.2 per cent) and Novo shoes (53.1 per cent).
City Chic and Forever New have both released statements addressing the lifts in their respective gender pay gaps.
According to City Chic, what appears to be a material rise in its gender pay gap – from 59.1 per cent to 67 per cent – does not reflect any change in HR practices or demographics, but is a result of including CEO salary into the overall pool. The CEO of City Chic is Phil Ryan.
“The distortion of results is exacerbated by males being such a uniquely small percentage of the City Chic workforce,” City Chic reported.
“At the 2024 snapshot date (31st March 2024), City Chic had a total of 520 employees of which 4 per cent were male (consistent with the 2023 result). Of the roles held by men with equivalent roles held by women, there is no evidence of wage disparity.”
City Chic added that the company reviews all salaries and salary bands on an annual basis to ensure equal pay for equal work is maintained.
“Of City Chic’s retail workforce, 100 per cent are female as this has proven to make City Chic’s customers feel most comfortable in their shopping experiences,” the retailer reported. “Of the 21 males employed by City Chic, all work in the support office. This means the median and average salary for males only reflects a minority of support office salaries, while the median and average salary for females is influenced by a significantly larger number of retail and entry-level positions.”
“City Chic is very proud of its strong female dominated workforce which accounts for 96 per cent of total headcount. City Chic employees are committed to empowering its female customers to be the best versions of themselves, and City Chic ensures this is mirrored by its employees both inside and outside the workplace. Any analysis of City Chic’s WGEA 2024 results must be considered in this context.”
Forever New also took aim at the WGEA results, reporting that the issue of gender inequality holds significant meaning for the business, where 95.3 per cent of its workforce are women.
As of 30 June 2024, 77.37 per cent of the team worked in stores, and of that group, 99.3 per cent are women.
“In the current corporate landscape, despite the persisting dominance of males in head office positions across multiple departments, we are pleased with the following statistics which promote our support of women in the workforce," Forever New reported.
“Our employment data from this reporting period reveals that 89 per cent of manager-level roles are held by women. Additionally, 84 per cent of the highest-paid employees are female.”
Forever New added that 98.85 per cent of managerial positions were granted to women over the timeframe, or 89 appointments, and half of its executive leadership team and 68 per cent of its senior leadership team are women.
Forever New also currently has three directors, of which one is female, “and the shareholders are committed to increasing the female presence on the board, fostering greater diversity and inclusion at every level of our business,” the company added.
“We believe diverse leadership drives innovation, strengthens decision-making, and reflects the values of our customers and community.”
In its head office, 18.5 per cent of the roles are held by men, and of that group 45.83 per cent work in digital and technology.
“We have identified that we need to improve gender representation in this team and are exploring several initiatives, including targeted recruitment campaigns, partnerships with universities, flexible work arrangements and skill building initiatives, to increase the number of women applying for and succeeding in these roles.
“The high proportion of women in our store teams, and the small number of men working at Forever New occupying positions with a higher-than-average wage, contributes to the median total remuneration favouring men for the reporting period.
“Our goal is to lessen this gap and get it as close to zero as possible.
“This commitment includes conducting regular pay audits to identify and rectify any pay disparities, implementing transparent salary bands to ensure equitable pay for equivalent roles, providing leadership development programs focused on empowering women to pursue higher-paying positions and regularly reviewing and reporting our progress towards gender pay equity.
“We believe these steps will help foster a more inclusive workplace and ensure that all employees are compensated fairly for their contributions.”
Forever New also noted that it has reached its sixth year partnering with Dress for Success, a charity helping women achieve economic independence. The retailer has so far raised over $100,000 in donations and products, and helped support 771 women on their journey.
Seafolly and Novo Shoes have yet to release statements regarding their high gender pay gaps.