Sterling Furniture Group Limited

2025/26 Gender Pay Gap Report

Snapshot date: 5 April 2025

Introduction

Gender Pay reporting legislation requires organisations with 250 or more employees to publish statutory calculations each year showing the gap in pay between male and female employees.

At Sterling Furniture Group Ltd, we are dedicated to providing exceptional career opportunities irrespective of gender. Our growth over the past five decades into Scotland's largest independent furniture and homewares retailer is built on the contribution of a diverse workforce.

Our Pay Gap

Our workforce is approximately 47% male and 53% female. Much of our catering and homewares retail staff roles, many of whom work part time and do not receive bonuses, are held by females. Our head office, senior sales and distribution staff roles are primarily male, some of which receive bonus payments.

These factors contribute to an overall Mean Gender Pay Gap of 21% and a Median Pay Gap of 0% (see Appendix 1.1). The 0% median gap indicates that the midpoint salary is identical for male and female employees. Approximately 29% of male employees and 17% of female employees received bonus payments during the reporting period, with a 0% mean and median bonus pay gap, reflecting that commission rates are identical regardless of gender.

Gender disparities in senior roles, coupled with a concentration of female staff in lower-paid retail and catering positions, primarily account for our pay gap. Our pay quartile data illustrates this clearly: women represent the majority in the three lower pay quartiles but a minority in the upper quartile (42%). This reflects workforce composition rather than any difference in pay for equivalent roles.

Actions We Are Taking

Efforts to address our gender pay gap have continued over the past year, including management restructuring and resizing projects.

Each year we examine the pay structure throughout the entire organisation, establishing salary bands that align with each role's duties and level of responsibility. This helps ensure fair and consistent compensation for all employees.

These measures demonstrate our dedication to fair and balanced recruitment, development, and recognition practices, fostering an environment where all employees can excel and be rewarded equitably. We will continue to review and report on our progress annually, with the aim of further reducing our gender pay gap over time.

Written Statement

I confirm that the information reported is accurate and has been prepared in accordance with the Equality Act 2010 (Gender Pay Gap Information) Regulations 2017.

Andrew Murray Graham
Director, Sterling Furniture Group Limited

Appendix 1.1 — Statutory Data

Snapshot date: 5 April 2025

Table 1 — Gross Hourly Rate of Pay

Gross Hourly Rate of Pay Male Female Difference
Count 138 159
Mean hourly pay £17.50 £13.78 21%
Median hourly pay £13.00 £13.00 0%

The mean pay gap of 21% reflects the higher proportion of male employees in senior and commission-based roles. The 0% median gap indicates that the midpoint salary is identical for male and female employees.

Table 2 — Bonus Pay

Bonus Pay Male Female Difference
Proportion receiving a bonus 29% 17%
Mean bonus pay gap 0%
Median bonus pay gap 0%

Where bonuses were paid, the amounts were equivalent between male and female employees (0% mean and median bonus gap). The difference in participation rates reflects the higher concentration of male employees in bonus-eligible distribution and commission-based roles.

Table 3 — Pay Quartiles (Gross Hourly Rate of Pay)

Quartile Male Count Male % Female Count Female % Total
Lower (£0.00 – £12.21) 34 45.33% 41 54.67% 75
Lower Middle (£12.21 – £13.00) 31 41.33% 44 58.67% 75
Upper Middle (£13.00 – £14.50) 31 41.89% 43 58.11% 74
Upper (£14.50 – £133.33) 42 57.53% 31 42.47% 73

Note: The upper quartile hourly rate range reflects the inclusion of senior executive remuneration calculated on contracted hours, which is consistent with statutory reporting methodology.