Retail wage campaign UK targets Next, JD Sports, and M&S as a quarter of retail workers earn below £12.60 an hour

In a landmark move, heavyweight investors managing over £1 trillion in assets — including Axa Investment Managers and Scottish Widows — have thrown their weight behind a growing campaign demanding that Britain’s largest retailers pay staff a real living wage.

More than 100 individual shareholders and eight institutional investors have filed or supported resolutions at the upcoming annual general meetings (AGMs) of Next, JD Sports, and Marks & Spencer, urging the companies to ensure all employees — including contractors — are paid at least £12.60 an hour, or £13.85 in London.

The campaign, led by the responsible investment charity ShareAction, is a response to mounting concerns that some of the country’s best-known retail brands are not doing enough to protect their lowest-paid workers from the cost-of-living crisis.

Data from the Living Wage Foundation reveals that almost a quarter of UK retail workers — around 818,000 people — earn below the recommended “real living wage.” This wage level is calculated annually to reflect the actual cost of living, unlike the government’s statutory minimum, which rises to £12.21 an hour in April but still falls short of the Foundation’s benchmark.

“Britain’s biggest retailers are failing to provide workers with the income they need to live decently,” said Catherine Howarth, chief executive of ShareAction. “This has consequences not only for the individuals affected but for the economy as a whole. Sub-living wages increase strain on public services and inhibit long-term growth.”

At the heart of the push is a shareholder resolution to be tabled at Next’s AGM on 15 May. The resolution demands a full accounting of how many of the company’s workers — including indirectly employed staff such as cleaners and security guards — are paid below the real living wage. It also calls on Next to conduct a cost/benefit analysis of adopting the wage as its new minimum benchmark across the board.

Backing the resolution are seven institutional investors, including the Greater Manchester Pension Fund, Trust for London, and the Cardano Group. ShareAction says the resolution is designed not just to expose current shortfalls but to build momentum for systemic change in retail sector pay practices.

Similar shareholder actions will be launched at JD Sports and Marks & Spencer, whose AGMs are scheduled for July. Friends Provident Foundation and Scottish Widows are co-sponsoring both resolutions, with Cardano also backing the move at JD Sports.

Major companies have the ability — and the responsibility — to improve standards across the retail sector,” said Charlie Crossley, investment engagement manager at Friends Provident Foundation. “The Retail Wage Campaign UK, alongside real living wage accreditation, empowers workers to cope with rising costs and tackles deep-rooted inequalities in the workplace.

Of the three retail giants targeted, M&S appears closest to meeting the campaign’s demands. The company says it already pays the real living wage to all direct employees, regardless of age, and provides benefits such as staff discounts and a competitive pension. However, it has stopped short of guaranteeing that contracted workers are paid the same standard.

An M&S spokesperson said the company was open to further dialogue: “We strongly believe our third-party contractors should also pay their employees fairly. We welcome engagement with our shareholders, including ShareAction.”

JD Sports, in contrast, pays staff only the legal minimum wage — £10.42 currently, rising to £12.21 in April — for those aged 21 and over, with no London weighting. In a statement, a spokesperson defended the company’s pay structure: “All JD UK retail colleagues are compensated above the national living wage for those aged 21 and above, alongside a comprehensive benefits package from day one.”

Next, which has yet to publicly comment on the resolution, also pays just the statutory minimum wage to employees aged over 21, with some enhancement for staff working in London.

Critics say such approaches are no longer adequate in an economic climate marked by inflation, soaring housing costs, and stagnant disposable incomes for working families.

The Living Wage Foundation, which accredits employers that commit to paying the real living wage across their workforce and supply chain, has seen over 15,000 UK employers sign up for its voluntary scheme. Accredited companies range from FTSE 100 giants to smaller ethical firms.

Yet campaigners say that retail, one of the UK’s largest low-wage sectors, has lagged behind despite reaping substantial profits. They argue that failing to ensure decent wages creates a “hidden subsidy” whereby the welfare state and public services absorb the cost of in-work poverty.

“By refusing to meet basic living standards for their staff, these companies are offloading their responsibilities onto the taxpayer,” said Howarth. “Investors are increasingly recognising that low pay is a business risk and a moral failure.”

With the AGM season approaching and pressure mounting, attention now shifts to how boards will respond to the Retail wage campaign UK. If successful, these resolutions could transform pay policies at some of the UK’s most influential employers, sending a strong message that low pay is no longer acceptable in a sector that heavily depends on its workforce.