Just over half of UK retail businesses have no crisis plan for dealing with a serious reputational issue, a survey for South West law firm Foot Anstey has revealed.
And at around 50% of firms, ultimate responsibility for reputation and brand management rests not with the CEO but senior directors. 
The surprise results come despite a raft of problems at high street retailers this year that have pointed to a lack of awareness of the way consumers behave and the reputational damage that can be done when things go wrong.
The findings appear in The Foot Anstey Retail Report: Brand, the last in a series of key sector insights produced this year by the firm, which has an office in Bristol.
Other findings from the survey of retail leaders show that all traditional ‘offline’ branding – including television – have gone down in importance, and only 38% believed their business was prepared for GDPR.
Foot Anstey employment partner and head of retail, Patrick Howarth, pictured, said: “You don’t have to think very hard or long for the last time you heard of a reputational crisis in the retail sector.
“It’s very surprising to learn half don’t have a plan, but also that a similar number would not have a CEO who is in overall charge of the brand’s reputation – should a plan be needed.
“Managing through a crisis while doing minimal harm to the brand is an entirely different model of working, one which presents challenges beyond the comfort zone of even the most experienced leader.”
London-based investment and advisory firm Hilco Capital has long experience of working with distressed businesses facing extreme reputational crises, including music and video retailer HMV, department store group Allders and Allied Carpets.
Its international investment director Steven Pell echoed the findings of the report. He said: “Developing a detailed, action-orientated crisis mitigation plan to manage any negative brand perceptions should be a key part of any retailer’s risk management strategy.
“In a time when the retail sector is facing a number of pressures and the market becomes increasingly competitive, the importance of positive brand awareness and protection, trust and attribution in the eyes of the consumer is more important than ever – so retailers can differentiate themselves from their competitors.”
The other previous Foot Anstey Retail Reports 2018 were on People and Property.
Foot Anstey , which opened its Bristol office six years, also has offices in Taunton, Exeter, Plymouth, Truro, Southampton and London.
