Risk Management

Retail is a Big Business for the UK

Accounting for approximately 25% of national gross domestic product, the retail sector is an important part of the UK economy, with sales in 2004 amounting to £246.9bn.

11% of all enterprises in the UK are retailers, employing around three million people.

As shopping is a regular activity, there is an increased likelihood of accidents happening in an environment that the public takes for granted as being 'safe' - if effectively managed, these risks can be mitigated and accidents prevented.

Firstly, there are the dangers and risks imposed on customers; secondly on the staff; and thirdly, the potentially crippling reputation risks.

Hazards such as slips and trips on wet floors, bacteria in water tanks from faulty air conditioning systems, curling carpet edges, protruding shelf edges, escalators and lifts are evident all around.

However, there are less obvious risks:

• Coffee shops will make use of a boiler - these boilers must be inspected on a regular basis because the consequences of a failure could range from scalding customers and staff to a fatal explosion that could also destroy the premises. An alarming number of coffee shop owners are ignorant of the facts.
• ATMs, auto checkouts and self-service counters - such electrical and mechanical equipment requires testing, maintenance and, where necessary, statutory inspection.

Personal injury compensation is high on the political agenda and, with claims management companies setting up stalls in shopping centres, the emphasis on health and safety is increasingly important.

The Health and Safety at Work Act 1974 clearly stipulates that employees have a right to work in a safe environment. Most risks can be significantly reduced with adequate staff training. The industry is reliant on part-timers and temporary staff - statistics show that the accident rate doubles for such employees.

A key feature of good management is proper training and supervision as well as access to safety equipment and clothing where required. Linked directly to poor water supplies, Legionnaires' could be the asbestosis of the future.

Clean self-service counters are not an accident waiting to happen, and a small shop with good congestion management will not bring a flurry of slip and trip claims.

Recently, The Daily Mail carried a story about an insurer that was sued by a woman who had tripped over a pile of claims forms left strewn on the floor. For a small business, the same style of claim could discourage customers, force businesses to be closed by health and safety inspectorates and, in the worst-case scenario, lead to a serious accident.

With litigation being so prevalent, it is vital that clients observe and understand the legislation.

Retailers can mitigate risks significantly with a few simple procedures in place.

August 2007