A bit about me: How I got here...Tell me about yourself...The focus is on Retail today but also applies to the Hospitality sector
There are no “out of bounds” questions.Prepared presentation however happy to “riff away” from it.Most important to me to answer your questions.How can I best give you or share knowledge that will help you?
Before we get started here is the language of retail...a few basic acronyms and frequently used jargon; not an all inclusive list by any means but these are used a lot.POS is the technology used at the cash register (till) to manage the sale; but it is also linked to the stores replenishment systems. Often confused with POP.POP is the stuff hanging on shelves such as coupons, shelf danglers and shelf talkers; ceiling and window signs, or any instore promotional signage from MFR’s or corp marketing initiatives.WMS also known as Workforce Management SystemSKU is often referred to as “skew”.MOM’s are basically case packs or inner case packs. The minimum order requirement for a sku.CPG; term often used in the grocery/drug store channel to describe Branded items, but not meat, vegetables or Prescriptions.
IND; those retailers that can make buying and mix decisions at store level. Their own profit centre.UPC; go to www.gs1ca.org for info; sometimes referred to as bar codeQR codes; the square box with the squiggly lines; usually directs you to a website; go to http://www.qrstuff.com/ to createPO; referred to as (pee-oh); the doc that most retailers use to place the order with a signature.GMROI; “Gem-roy” is a key product measurement at chain stores GMROI calculation is GP$/Avg. Inventory at cost during a period of time.Are there any acronyms you’ve heard that I’ve overlooked?
I would suggest that the central reason highly qualified newcomers struggle so hard to integrate into the workforce - is that employers do not like to take risks. When faced with a resume which includes education from a university or college in a distant part of the world or work experience in a company they have never heard of in some far away place, many employers don't trust it.By and large, employers don't trust what they don't understand. Hiring someone they don't know, with qualifications they are unfamiliar with, simply seems too risky to the average employer. The key challenge then becomes to develop programs and mechanisms to bring skilled newcomers into direct contact with potential employers. In this way, employers are educated and their perception of risk is removed.
Whether you are buying food, clothing, or other necessities, putting gas in the car, picking up supplies for a do-it-yourself project, getting a new pair of glasses, or simply browsing in a mall, you’re using the services of establishments in the wholesale & retail trade industry.
Wholesalers can be thought of as “middle men” who supply goods to industrial or business customers, such as retailers, restaurants, manufacturers, or construction companies. They sell single units of big ticket items like farm machinery, heavy equipment and vehicles. They also sell bulk quantities of building supplies, food & beverages, seed, fertilizer, and many other types of products.Wholesalers typically operate from a warehouse or office space that is not necessarily designed to attract walk-in customers. These outlets are often located in industrial areas of cities, where it is convenient for their customers to pick up and load supplies, or from which goods can be distributed and delivered directly to their clients.
The main characteristic of retailers is that they sell goods primarily to consumers or households. Supermarkets, gas bars, drug stores, furniture outlets, “mom and pop shops”, hardware stores, car lots, mobile home dealers, and garden centres are only some of the many types of retail businesses. This industry also includes “big box” retailers such as office supply and computer stores, and retailers of building materials, plumbing, and electrical supplies.Retail outlets are usually designed to have display areas where customers can see merchandise available for sale. They cater to walk-in traffic, so they’re often located in city centres or suburban areas.
Some retailers sell directly to customers…Not all retailers have store-fronts. The industry also includes establishments that sell via infomercials, vending machines, door-to-door sales, by in-home demonstrations, or by mail order. Some retailers only sell products online. …and some stores are not included in the retail industrySome establishments that sell goods to customers are not included in this industry. For example, a produce stand at a farm would be considered part of the farming operation. A bakery that produces and sells baked goods onsite is included in the food manufacturing industry. Photofinishing shops that are primarily in the business of developing pictures rather than retailing products are part of the personal & laundry services industry, and maintenance & repair shops have their own industry group.On the other hand, meat & seafood markets or optical outlets, which are primarily involved in selling finished products to customers, are part of the retail industry. Cutting meat, preparing fish or grinding lenses is just one aspect of the service they provide.
An industry in transitionThe wholesale & retail trade industry has seen many changes in recent years1. These have been driven by technological and market developments. Retailing has always been characterized by a mix of small, privately owned and operated establishments, and chain stores2 that have multiple outlets. Chain stores include local chains, as well as regional, national and international operations.More than half of all retail purchases in BC are made at chain stores. They account for 84% of total sales by department stores and general merchandisers, and about three-quarters of sales by home electronics retailers, supermarkets, and clothing. Other types of retailing where chain stores have at least 50% of the market include home centres, gas stations, and furniture stores.
In the mid-1980s, most of the chain stores in Canada were domestically owned. There were only 10 US-based chains operating in Canada. By 2003, there were 185 US chain stores with Canadian outlets, and 11 of the top 20 retailers in the country were American.
What effect has the growing influence of US retail companies had on the industry in Canada? Historically, many of the major innovations in retailing have come from the US.For example, supermarkets were an American innovation—the first self-service grocery store, called PigglyWiggly’s, opened in Louisiana in 1916. The concept of the “self-serving store” was so revolutionary that the owner was granted a patent.Prior to this development, customers at grocery stores had to ask a clerk to measure out dry goods in the required quantities. Pre-packaged goods, fresh fruit, vegetables, meat and dairy products were not available at the grocery store. You had to visit the butcher, or the greengrocer, or the dairy to buy these items.
More recently, a number of important retailing innovations have originated in the US. These include marketing concepts such as everyday low pricing, big box retailing, warehouse club stores, and specialty store chains, which only stock certain types of goods such as sporting equipment and clothing, computer products, or craft and office supplies.
Big box retailers place an emphasis on self-service, bulk buying, or do-it-yourself assembly. Stores are typically warehouse-style. Because they spend less on decorations or fixtures such as carpets, and may have fewer floor workers than other types of retail outlets, big box retailers can often sell goods—ranging from clothing and food to furniture and appliances—at very competitive prices. By eliminating the middle man, factory outlets are able to offer their products to consumers at reduced prices. Warehouse clubs offer products in bulk, and at discount prices, to customers who pay a fee to join.
Technological innovations have changed the way the industry does business. For example, bar codes, which are used to electronically scan and price merchandise, are also used to implement just-in-time inventory control (a process that allows retailers to keep less stock on hand, since they can order goods from their suppliers “just in time” before they need them). Radio frequency ID tags, which allow stores to locate merchandise using radio signals, are used as inventory control mechanisms and to simplify the stocking process. Goods marked with these tags can be located even if they are still in packing crates. Technologically advanced distribution centres, and the practice of cross-docking (where merchandise in warehouses is kept ready for shipment rather than being unpacked and put on shelves) are also innovations that arrived in Canada with the US retailing giants.
The entry of Wal-Mart into the Canadian marketplace in 1994 had a profound effect on retailers of all sizes. Some small independent stores were not able to compete, and have gone out of business. Others have found new ways to market their products, attracting customers who prefer to shop at locations that can offer more personalized service or stock products that aren’t available from the big retailers.Canadian chain stores have changed their marketing strategies in order to compete with stores like Wal-Mart. Many of them used to offer goods at sale prices from time to time, while charging higher prices in between. Now, they’ve adopted everyday low pricing, or are competing by marketing house brands or using customer loyalty plans.The “Wal-Mart effect” hasn’t just driven prices down. It has resulted in a lot of changes in the industry supply chain. Big corporations often deal directly with manufacturers, bypassing wholesalers altogether. Because these corporations have a lot of buying power, they’re able to influence the way producers make, package and ship their products. Some of these changes (such as the introduction of radio frequency ID tags) can benefit both small and large retailers.
All of these factors have made retailing more efficient, contributing to productivity gains in the industry. But there has also been a cost, since some of the diverse and unique features offered by small independent retailers have been lost.So how does all this affect consumers? They are able to purchase brand-name goods at lower prices. They can find virtually the same stores, offering the same products, in shopping malls all over North America. However, the types of goods offered for sale, and the retailers stocking them, have become more uniform. Independent retailers offering unique products are not as common as they used to be.
The Internet has become an increasingly popular source for shoppers looking for books, clothing, shoes, flowers, housewares, and even construction supplies. Many retailers and wholesalers offer products for sale online as well as in their stores, and Internet-savvy customers frequently check out these websites before they go shopping, even if they intend to make their purchases in person. Large book retailers have whole divisions devoted entirely to Internet commerce. Booklovers can purchase rare or out-of-print books online from a network of second-hand book dealers located all over the world.
The most common Internet purchase is travel arrangements Forty-five percent of Canadian Internet shoppers made travel arrangements online in 20075, and one in three purchased tickets for entertainment on the Internet. Among items traditionally sold by retailers, the most popular Internet purchases include books, magazines & newspapers (37% of shoppers) and clothing, jewellery & accessories (30%). Music (22%), computer software (20%) and consumer electronics (20%) were also popular Internet purchases. Less commonly purchased items include flowers (16%), toys & games (15%), and a variety of other items such as housewares, sporting goods and health & beauty products, to name just a few.And it’s really convenient...The store is open 24/7/365...
Internet shopping is still a relatively small niche market. In 2007, BC households that purchased goods or services online (including airline tickets and other services not available from retail outlets) made an average of nine online purchases and spent $1,280 on products sold over the Internet. By comparison, total retail sales were $32,376 per household in that year.
People are becoming increasingly busy, and have less time to prepare meals. Food retailers have responded to this by providing fresh salads, sandwiches, packaged casseroles, hot food, and other items that are ready to serve in their deli departments. Twenty years ago, most supermarket delis primarily sold sliced meats and cheeses. It’s not uncommon for supermarkets to have in-store pharmacies, flower shops, and even bank branches on-site. They may also sell clothing, books and other dry goods, and rent out cleaning equipment and videos. As a result, customers can benefit from “one-stop” shopping when they go to pick up their groceries.
The “one-stop shopping” idea is catching on. Some general merchandisers are including grocery departments in their stores. Other types of stores are carrying products that they previously did not stock. For example, some pharmacies now sell a wide range of fresh and packaged food products, as well as clothing, housewares, electronics, and small appliances in addition to their traditional wares.
The wholesale & retail trade industry has changed a great deal in the last two decades. Some of the changes have fundamentally altered the way the business works and what types of jobs are available in this industry. Supermarket chains hire chefs, cooks, and dishwashers to prepare and package take-home meals. Stores that use just-in-time inventory processes may need more truck drivers but fewer shelf stockers. Book dealers who sell their products online don’t need front-line sales clerks, but they do need mailroom and warehouse workers and computer operators to run their business.
These are just a few examples of how the changes in the industry have affected employment characteristics. There are endless career opportunities in retail.Retail is not just the sales floor; there are multiple support industries.
By the time goods reach a wholesaler or retailer, they have usually gone through many stages of production. Raw materials harvested or extracted by a primary industry are sold to a manufacturer who produces and ships finished goods to a wholesale or retail establishment. Wholesalers and retailers do not materially alter the goods they sell—they simply make them available to their customers.For wholesalers and retailers, the value of production is not the same as total sales. Selling prices include the cost of goods sold plus a margin, which is a measure of the value of the services provided by a wholesale or retail establishment. Margins cover expenses such as operating storage or retailing facilities, fuel & trucking services, supplies, rent and wages as well as a return to the owner. In some cases, the margin represents a relatively small percentage of the final selling price. For example, most of the selling price of a car goes to the manufacturer rather than the dealer.
Margin rates (the ratio of margins to total sales) vary significantly among industries. In retailing, they average about 29%. Clothing retailers usually have the highest margin rates (typically about 50%), while retailers of motor vehicles and gasoline tend to have lower margin rates (usually less than 20%). Higher margin rates do not necessarily mean higher profits. They simply reflect differences in the cost of providing services. One reason why retail margins are relatively high at clothing stores is that retailers must devote some of their floor space to displays and changing rooms, and many keep staff on hand to give personalized assistance to customers. Sometimes items are damaged when customers try them on, and they may require repairs. This adds to the cost of providing clothing retail services. In a supermarket or self-serve gas station, customers fill up their own gas tanks or load their grocery carts, and are less likely to need one-on-one interactions with staff before they pay for their items. Margins in these types of establishments are usually lower than in more service-intensive retailing businesses.
Margins in the wholesaling industry average about 20% of operating revenues. As is the case in retailing, there is a lot of variation in wholesale margins, which range from less than 10% for wholesalers of pharmaceutical products to more than 30% for those wholesaling motor vehicle parts, office and professional equipment, and apparel.
About 5% of the province’s GDP originates in wholesale trade, while the industry‘s share of total employment is just under 4%. In contrast, the retail industry’s share of GDP (7%) is quite a bit lower than its share of employment (nearly 12%). Given the customer-oriented nature of retailing activities, it is not surprising that retail trade is a much bigger employer than the wholesale trade industry. In fact, there were three retail workers for every worker in the wholesale industry in 2008.Retailing is a labour-intensive activity. It takes a lot of effort to run a store. Workers have to order goods, stock shelves, assist customers, take inventories and record purchases. Stores need to be cleaned and window displays have to be updated. There are many other tasks related to attracting and serving customers. Wholesale establishments are usually meant to be functional rather than inviting, so they normally don’t require as many front-end staff to operate.
Another reason for the large gap between GDP and employment shares in the retail industry is that nearly a third of the people who work in the retail industry are employed part-time, so the job count in retail trade is higher. The average for all industries is one in five and in wholesale trade, only one in 10 workers has a part-time job.
Fifty-three percent of the jobs in this industry are in sales and service occupations. In wholesale trade, these workers are primarily technical sales specialists, and sales representatives. In retail trade, they’re mainly salespeople, cashiers, supervisors, or grocery clerks and shelf stockers.Jobs in business, finance and administration (18%) include office clerks, secretaries and shippers and receivers. Business, finance & administrative jobs are somewhat more prevalent in wholesaling than in retail trade. They mainly involve shipping, receiving and accounting.Management (15%) is the next most common occupation. In wholesale trade, management positions primarily include sales and marketing positions, while managers in retailing are more likely to be running a retail outlet.
Trades, transportation & equipment operators (10%) are mainly materials handlers, truck and delivery drivers, and equipment operators. They make up a larger share of the workforce in wholesaling (about a quarter of the workforce) than they do in retail trade. The relative importance of transportation & material handling occupations reflects the nature of wholesaling, which involves delivering goods to retailers for resale, but may also include delivering bulky items such as building and other supplies to companies that use them as inputs in production.
Wholesale & retail trade was the province’s biggest employer in 2008, with a total of 354,800 people working in the industry. Three-quarters (266,800) of the workers were in retail trade, while one in four (88,000) worked in wholesale establishments.The average worker in the industry earned $16.76 an hour and spent 35 hours on the job each week. Average wages were significantly lower in retail trade ($15.21) than in the wholesaling industry ($21.89). A typical worker in BC earned $21.46 per hour and spent 36 hours on the job in 2008.
December sales account for a significant share of total revenues for many retailers. For some, such as clothing and home electronics retailers, as much as 15% of their total sales are usually made in December. Department stores, pharmacies, and personal care stores also see higher sales during the pre-Christmas rush. These retailers often bring in extra staff to help during the busy holiday shopping season. For some retailers, there is also more activity during the tourist season in the summer, or just before school starts when parents and students stock up on supplies and new clothing for school. Garden stores are busiest during the spring and summer months.Despite the seasonal changes in employment, temporary workers make up just 8% of annual employment in the industry. Workers hired to help out during the pre-Christmas rush are usually only employed for a short period, so even though they may account for a significant share of the total workforce while they are working, the effect is muted when annual averages are used.About 50% of the workforce is male, slightly less than their share (53%) of total employment. In wholesale trade, seven in 10 workers are male, but the share is much lower (43%) in retail trade.
The incidence of unemployment in the industry is relatively low, averaging 5.1% between 1990 and 2008. This was well below the 7.8% rate for all industries during this period. The average jobless rate in wholesale trade (4.5%) was lower than in the retail industry (5.3%).Self-employment is less common in wholesale & retail trade (12%) than in the economy as a whole (19%). Nearly one-fifth (18%) of the workers in wholesale trade are self-employed, but in retail trade, only 10% are self-employed.The wholesale & retail trade industry includes everything from “mom and pop” corner stores to large department stores or wholesale distribution centres.Small stores are often operated by self-employed businesspeople, who often hire part-time or full-time staff to help run their store. This means that even in a small store, there may be several employees as well as the self-employed owner.This, together with the prevalence of part-time work in retailing (which boosts the total job count), may help explain why self-employment accounts for a relatively small percentage of the total number of jobs in this industry.
Although self-employment is less common than in the economy as a whole, most establishments have relatively few workers. Forty-four percent of employees in wholesale & retail trade work at establishments with fewer than 20 people.
Wholesale distribution centres are often located in highly populated areas, although smaller wholesale establishments can be found in most urban areas. Retailing activity occurs in every part of the province, and the regional distribution of workers in this industry closely mirrors the regional distribution of the provincial workforce.
Likely your product will fit into one or more of these channels.These are retail industry sub-categories; your target customers. Generally they fall into one of six categories;ExamplesThe Bay, Sears, Army & NavyZellers, Target, Wal-Mart, Costco, Home Depot, The Brick Micheals, Indigo Books &Music, and Dollar StoresThe Shopping network; E-bay; Amazon; ZapposSafeway, Save-On Foods; London Drugs, ShoppersC-store; ie. 7-11, Macs, Town Pantry, Esso-On the Run, Petro Canada; all serviced by the same wholesaler; Core-Mark
Within each category there are basically 3 types.Chains i.e.. Future Shop, Starbucks, Cdn Tire, SDM; explain the difference between chain, banner and IND’s;Pharmasave, Home Hardware are banners. Waves Coffee, IRLY Building Centres, Peoples Drug Mart(even though a banner; they are ‘pure’ IND), Gerry’s Gifts, (your name) Toy’s etc. etc.The point here is; whether you choose Chain, banner or IND, there are potentially lots of retailers to focus on within categories.
Why does nationally matter?Retailers head offices are located in Ontario; decisions are made there.
Positives; Currency is strong
The retail environment is changing rapidly. Consumer adoption of emerging technologies has dramatically changed shoppers’ behaviours. Stores are now becoming just one part of a larger, more connected and complicated customer experience.
“The easy days are over,” and an industry shakeup is coming with U.S. discounter Target’s 2013 entrance. Taking over Zellers leases only; Not taking over anything else; inventory or staff.Per capita retail space is low compared to other urban centres; Calgary, Edmonton, TorontoMall expansion and reno’s at Guildford, Aberdeen, retail centre at River Rock CasinoVancouver has some bright spots for employment growth for 2012. One of its local employers, Seaspan Marine Corp., will begin an $8-billion deal to build non-combat ships for Canada’s navy and coast guard. Film and movie production is a year-round job producer as well.
The point here is that retail sales are all over the place over the past two years.
Canada's unemployment rate edged up 0.1 percentage points to 7.6% as more people searched for work. Compared with 12 months earlier, employment rose by 129,000 (+0.7%), with most of the growth occurring in the first six months of this period.Both full-time and part-time employment were essentially unchanged in January. Compared with 12 months earlier, the number of full-time workers was up 1.2% (+170,000), while the number of part-time workers declined 1.2% (-41,000). At the same time, the total number of hours worked grew 1.4%, with all of the increase in the first half of the period.
Male/female parity is generally observed in the retail sector. In contrast cashiers are mainly women
The percentage of people working part time in retail is really high (46%). Almost 1 in 2 salespeople and cashiers work part time while store managers and buyers are less likely to do so (respectively 6.5% and 8.3%). The Canadian average is around 12%.
The average age for managers and buyers is around 43 years old, with relatively few young people (7% is less than 24 years old). These professionals generally retire later, at around 64.Salespeople have a greater percentage of young people, and generally retire around 62.
The results of the Manpower Employment Outlook Survey for the second quarter of 2012 have been released, and Canadian employers say they expect a relatively upbeat hiring climate between April and June of this year.The survey of 1,900 employers in Canada shows that 21% of them across industries are planning to increase their payrolls in the second quarter of this year. Only 5% of employers surveyed said that they were planning to decrease their workforce. This is actually little changed from the employment outlook predicted at this time last year. "Overall, Canadian employers tell us that they plan to maintain their payrolls during the upcoming spring months which is positive for job seekers. If we look at longer-term hiring trends, compared to last year this time, Outlooks are stable or improved," said Janis Sugar, Director of Marketing for Manpower Canada. The biggest increases in hiring are expected in the Mining trade, with Transportation & Public Utilities, Construction, Services, Retail, and Manufacturing also faring well.
“Nowadays, starting out in the retail trade is a wise choice,” says Andrew Siegwart, Director of Education and Events for Retail Council of Canada.
A career in retail provides the best of many worlds: you receive a competitive salary, great benefits and outstanding opportunities for advancement, while the nature of the retail business is fun, fast-paced and interesting.
Often...I hear the question...Why Choose a career in Retail?I've been in retail for over thirty five years and I do it first and foremost to provide for my family. Retail has been very rewarding to us and has provided the opportunity for our kids to attend university and offer opportunities for our future. The most rewarding aspects of the retail work I do is the satisfaction of providing a service for each individual customer and being a catalyst to help others move upward in their careers, to give them the chance to provide for their families. When I'm at my best I'm a teacher with a natural curiosity for improving life and business. And as it turns out our life story and experiences are our greatest assets in the new economy. Now I’ve turned my attention to helping others in their careers and witnessing firsthand the benefits. If you sincerely believe in servicing both of your customers, the customer and the employee; then you will always feel challenged and rewarded on a daily basis in the retail business.
Myths contaminate the truth.People often have fixed ideas about different jobs. But it’s always important to get the facts. Here are some common misconceptions answered by the real facts.In fact, the National Retail Federation (NRF) indicated that the average annual salary for a retail manager is approximately $42,000, though at larger department or chain stores it can skyrocket to $200,000 and more.
So for anyone looking for a job opportunity that provides customer interaction and the opportunity for growth and stimulation, here are five reasons to consider the retail industry.
According to USAToday there has been a decline in the number of young people willing to consider retail as a career. This leaves a virtual gold mine of opportunities for everyone else.
How can anyone overlook the perks that working in retail can offer? Aside from the on-the-job training offered, working for a retail company that offers the kinds of products the job seeker regularly buys can go a long way in making the work environment an enjoyable one. Add to that the employee discounts, which most retailers offer, and it could be a match made in heaven.
When most people think of retail, they think only of the sales associates out on the floor stocking shelves or working the register. In fact, retail offers a much larger range of opportunities. For individuals with college degrees there may be programs in management training or career paths into the regional or corporate level. Someone might start in the retail outlet working as a sales clerk, but opportunities as assistant manager, manager, district manager as well as corporate positions in marketing, merchandising or buying, among others, exist.
Recent numbers indicate that retail is the second largest industry in the country employing approximately 4 million Canadians. That means there are a lot of employers as well as jobs and careers to choose from.Want to relocate from one province to another? Retail experience can land the job seeker a job in the new town. Tired of working for a grump? There are a lot of other retailers out there to work for.Though many job seekers today have a misperception that jobs in retail pay low and lack growth potential, the fact is that retail offers more than just cashier and sales associate positions. Positions in the retail field may involve information technology, marketing, and communications as well as loss prevention, finance, and merchandising.That’s why it is important to keep in mind that retail may be the right field for that next career move.
CashierBecoming a cashier is great way to get your foot in the door and understand the foundations of retail. A cashier's responsibilities overlap somewhat with that of a sales associate in that they are both frontline staff and responsible for making sales. However, in some store environments they have less of a focus on initiating sales and instead focus on completing the transaction or closing the sale.Sales AssociateA sales position is another great way to get your foot in the door and learn the foundation of retail. In fact, it is not unusual for talented sales associates to remain in sales for their entire career! Every retailer owes their success to their frontline staff - you are the face of the company, the people the customers see and come to trust! Retailers are beginning to demand a lot more from their frontline staff; as a result, trained, professional associates are becoming the standard on the retail frontlines.
Assistant Store ManagerAssistant store managers help the managers oversee sales, operations, personnel and merchandising to achieve the goals and standards set by the company. The position is the store manager's right hand: they assume responsibility of the store when the manager is not present. This is a great stepping stone for individuals who aspire to be a store or district manager. As an assistant store manager, you must possess team-building and communication skills, and be able to direct, develop and supervise employees. You must also be empathetic, supportive and results-driven.Merchandise ManagerA merchandise manager will assist the store manager in directing all activities related to customer service, merchandise flow, store maintenance, expense management, shortage prevention and sales support functions for a multi-million-dollar store. A merchandise manager must possess strong negotiation and leadership skills and be organized, driven and flexible.Visual MerchandiserVisual merchandising has become a powerful component of retail. Leading-edge visual merchandising practices are widely used to enhance in-store space planning, design and layout to make an easier, more attractive and powerful shopping experience for consumers.
In-Store Marketing ManagerAn in-store marketing manager works with the merchandising and store managers on all in-store marketing initiatives. In a larger retail company, many in-store initiatives will be funneled down from head office; it is the responsibility of the in-store marketing manager to adapt and implement the strategies into their particular store. In-store marketing pertains to all store signage, point-of-sale material, and event/sale in-store marketing strategies.Store ManagementThe possibilities for store managers are endless - moreover, the position can be very lucrative. A store manager is responsible for all aspects of successful store operations including all elements of sales, operations, personnel and merchandising. A store manager must have strong leadership skills, excellent written and verbal communication skills, and be able to negotiate, plan and execute strategies.District ManagersA district manager is responsible for providing support and guidance to a group of assigned stores and ensure operation standards are being met. Additional tasks include hiring, supervising and developing store managers and assistant managers. They also oversee all elements of sales, operations, personnel and merchandising to achieve overall goals and standards set by the company.
Assistant BuyerThis Position will assist the buyer and/or associate buyer (see description below) with selection and procurement of merchandise.Associate BuyerAssociate buyers are responsible for merchandise development, and marketing and financial management of a particular area of business. This position is a developmental step toward a buyer position. An associate buyer must have strong written and verbal communication skills, superior analytical and PC skills, and the ability to work well with all levels of management.BuyerA buyer is the lifeline of a retailer. They select and procure merchandise to be sold. The skill with which they do this directly affects the sales volume of their store and its share of the total retail market. They may buy for a department, an entire store, or a chain of stores. Those who work for larger retail businesses often handle one or a few related lines of goods and are referred to by the type of goods that they purchase, such as sportswear and dress buyer, men's wear buyer, or toy buyer.Buyers in small stores often manage the department for which they buy. In addition, they train and supervise sales staff. They may also plan advertising, displays and sales promotions. It is important that buyers maintain a balanced inventory and a budget agreed upon between themselves and the store or merchandising manager. Although computers help maintain inventory records and analyze customer purchasing preferences and trends, buyers still have to make key decisions and be ahead of the curve regarding style, taste, and customer motivations.
Category ManagersCategory managers define retail categories (or product lines) as strategic business units. During the process, category managers will use supplier involvement to ensure sufficient category expertise. The goal is to produce enhanced business results by best meeting consumer needs and wants.Inventory AnalystInventory analysts use multi-stage inventory optimization to help make retailers more efficient. They consider the entire supply chain when making inventory decisions that determine the appropriate inventory levels at each supply chain facility by Stock-Keeping Unit (SKU).Trend ForecastingNew trends in research and technology are quickly changing this crucial aspect of retailing. Some of the job functions of this new and exciting field are trend identification, assortment planning, selection and procurement, supply chain management and logistics.
In-Store MarketingThe in-store marketing team at head office is responsible for driving the development plan for all in-store initiatives that are funnelled down to store level. The in-store marketing team will meet with retail departments at head office to determine promotional, sale and marketing needs at store level. In-store marketing pertains to all store signage, point-of-sale material, and event/sale in-store marketing strategies.Customer Relationship MarketingCustomer relationship marketing, or CRM, is creating a buzz in the retail world. The consumer/retailer nuptials in the past have been perceived as merely a transaction - but retailers are now shifting to a relationship-based view of the buying process. The value of building a long-term, customized relationship with the customer is now the central theme of a retailer's marketing strategy.BrandingMany retailers can attribute their success to a strong, well-leveraged brand. Branding is a combination of a product or service's public image. The concept includes function, target audience, prestige value, price point, and countless other marketing and business elements. The overall goal is to create marketing and advertising strategies that fashion an image around the brand that is not only consistent with the core benefits of the retailer, but also credibly promises that it will bring excitement and satisfaction.
Benefits DirectorA benefits director oversees the development and distribution of all HR benefits information to active, retired and former associates. Additional responsibilities include the daily administration of the benefits call centre and fulfillment areas. This is achieved by continuously reviewing processes and modifying procedures in order to provide excellent customer service.Human Resources ServicesFor retailers to be successful, they must find the right people to do the job. Human resources professionals are responsible for job analysis and design, recruitment, selection and orientation, training and development, performance examination, mentoring, coaching and counselling, performance correction, rewards and economic sharing, career planning and transitions, environmental and health issues, safety, labour, management, and community relations and trends.
Administrative ServicesAdministrative services are vital to a retailer. These positions perform important tasks efficiently, effectively and on time. An administrative service position assists and support key retail functions within a retail organization. They will provide daily administrative support through organization, scheduling and report development. Major skills required are organizational expertise, time management skills and attention to detail.Program Development & TrainingA company can only be as good as the people that it employs. Working in the program development and training area of a human resources department can be challenging, yet very rewarding. An individual working in this area is responsible for developing training for all areas of the business, including new employees, systems and professional development programs.
Strategic DevelopmentRetailers can improve store performance in a highly competitive and rapidly changing environment by using marketing and operational strategies. Both small and large retailers can use strategic planning to evaluate internal and external environments, strategy development, and implementation and control issues.Change ManagementChange is a very important aspect of a retail organization's infrastructure - if not introduced and implemented appropriately, any change strategy is doomed to fail. A retailer must examine and react to forces for change, resistance to change, methods of change, and management innovation and leadership in the organization in order to develop a winning strategy for new change initiatives.New Business DevelopmentIn order to keep up with the demands of emerging trends, new retail formats and the demands of consumers, retailers must evaluate new ideas, initiatives and business strategies to stay fresh and current.Retail AnalystBusiness, and society in general, are changing quickly. In order to stay competitive, the retail industry must stay at the forefront of these changes. Retail analysts use their retail business research and statistical analysis techniques to interpret rapidly shifting consumer needs, the global retail environment and the impact of incoming trends such as technology.Public RelationsIndividuals choosing a career in public relations must enjoy evaluating and understanding public attitudes and interacting with the public and media. This enables the public relations professional to identify policies and procedures of a retailer with respect to public interest, and plan and implement a communication program to gain public understanding and acceptance of retailers' strategic initiatives.Event PlanningHolding special events is a dynamic way to attract customers and support initatives. An event team is responsible for attracting traffic in stores to draw shoppers to different departments or promotions.
DesignerAs the marketplace becomes more competitive, retailers are placing more emphasis on areas such as store design and planning. By developing new cutting-edge business and design concepts that incorporate the sensory environment - for example, store lighting , sound and atmosphere qualities - space planning, customers' experience and satisfaction levels are increasing. This results in a higher return for retailers. In most cases, this position will require an undergraduate degree in a discipline of the arts, such as architecture, interior design, or fine arts and design.PlannerA store planner will work with management to effectively plan and control inventories at the location level to maximize sales, inventory and profit. A store planner will also ensure the company's commitment to have key items in stock and replenish merchandise, and direct the distribution of goods to achieve store sales/turn/gross margin goals across areas of responsibility. In this position, it is important to have experience with merchandising, planning, forecasting and allocation in a retail environment.Project Manager, Store ConstructionA project manager will have control over administration and implementation of all new, remodeling and expansion store projects. A project manager will also supervise a team of construction professionals to make sure that projects are completed on time and on budget. In most cases, this position will require an undergraduate degree in an aspect of construction management or architecture.Real Estate DevelopmentHave you ever wondered how Fifth Avenue became such a hot retail spot? It's all due to the savvy negotiating and strategic planning of retail real estate developers. A real estate department within a retailer uses techniques such as spatial modeling and socio-economic and demographic data to project population and clustering of market segmentation. This is used to predict successful retail locations, marketing geography and potential response rates of proposed real estate developments.
Product DesignerDeveloping products from concept to market is an exciting career. Projects usually start from understanding current and future consumer trends in the Canadian, U.S. and European markets. Product development and design teams then convert these trends into styles and prototype designs and products that correlate with customer needs. The product development team will then source materials from suppliers and match the supplier with a manufacturer to create the desired end product. A person in this profession needs a high degree of creativity and problem-solving ability, strong communication and analytical skills and a design background.MerchandiserA merchandiser in the product development department is responsible for driving and managing the core vendor business, including private brands, in order to deliver sales and margin results. A merchandiser will assume direct responsibility for a significant portion of the business. A person in this profession requires strong communication skills, analytical skills and negotiating skills, as well as leadership skills and the ability to think strategically.
Perhaps the skill most valued by retail companies, and employers in general, is good communication skills. Conversational skills.While some of the skills sought by retailers are obvious, such as a good personality, friendliness, and honesty, there are some other less obvious qualities retailers say good employees demonstrate. A professional retail store manager does not have to be stuffy yet must know when it is the right time for serious behaviour and when he/she can take a lighter attitude with both the customers and employees.Retail managers value initiative and work ethic. While service orientation is important, retail employees must also know how to find ways to be productive. Employees can greatly increase their value by producing results without needing to be told what to do.
Over the long-term, retail employees who can serve customers effectively, demonstrate a strong work ethic, and also develop leadership skills that match the company’s philosophy, can find great careers with retail companies. Other skills retailers look for include:
Unlike previous recessions, the latest one shifted consumer behaviour permanently.Customers today expect much more for even less, and they will quickly buy on price if business does not demonstrate value in every sense of the word. Improving customer experience is one of the most effective and enduring ways businesses demonstrate that value. That’s why delivering customer experience has become an important competitive battleground.
For anyone who has held a job working in retail environments, the problems in retail jobs are apparent. Most every problem in a retail job can be classified into two categories:When working in retail environments, one of the main categories related to problems in retail jobs is the co-worker.
Here is a short list of ways not to solve problems in retail jobsTake up the issue with the customers - they don't need to be involved in issues that are not theirs.Take up the issue with the co-worker in front of the customers - they didn't come to see a show.Have an attitude about the co-worker in front of the customers - again, they don't need to be involved in issues which are not theirs.Try to turn people against the co-worker; this can backfire badly.Constantly complain about the co-worker to the boss - the boss will eventually start to ignore any complaints even when they are legitimate.
CustomersAnyone who was ever working in retail environments knows about problem customers in retail jobs. Every, and any, job dealing with the public has this issue. Here are a few things you can try when dealing with a problem customer:Get yourself through the transaction as fast as possible.Move onto the next customer as soon as you can.Acknowledge the customers problem and try to provide some sort of answer.Get the management involved.Leave the area to verify your answer or seek other options; this also helps to clear you head.Be firm without causing a scene.Stay calm.
One of the problems with working in retail settings is that workers tend to forget a few simple rules which will always prove themselves.The customer doesn't care what the procedure is or why you have to follow it.The explanation you just gave the customer will be forgotten the minute they leave the building.Every question, no matter how stupid, needs an answer.The customer doesn't care about you, your boss, or anyone else during the transaction.Keeping answers as simple as possible is always the best thing to do.Know when to admit you are wrong.Be willing to hold your ground when you are right.
There are nice people who will enter your workplace; these are the ones who make the day enjoyable.There are nice people who you will get a chance to work with.When working in retail settings, remember that there is both good and bad in every day, everything, and everywhere. The world will not collapse because of a bad work day or job.
You would like to work in retail but don't know how to go about it: where to apply, how to approach the recruiters, or how to get an interview.
First of all, you should check out the corporate Web site of companies you are interested in, not just to know them better, but also to scope out their career opportunities. ÉricMéthot, RONA Senior Manager, People and Culture department, advises consulting these sites daily, since postings are regularly updated. Your CV will be stored in a CV bank and your profile will come up when employers do a search for matching profiles.
Don't forget to make walk-in applications too, which can be effective, especially for smaller chains. In short, pound the pavement by applying in person, and giving your CV directly to the person in charge. Specialized recruiting (niche) boards are more targeted toward the type of job you're looking for than general job boards. You can apply online and even register to receive job offers matching your profile by e-mail.
How do retail companies go about recruiting? Of course, each store is free to recruit as it sees fit, but most follow the traditional way: Companies first of all check out their pool of applications, essentially comprised of unsolicited applications. They may also post the job internally, solicit their contact network or attend job fairs. If these initial efforts fail, they generally run an ad on an online job board, their own site, the papers or in flyers. Then comes the CV collection step, in which all the CVs received online and by mail are gathered together, analyzed and sorted by recruiters. Promising applications are put aside at this step, and the people contacted for a phone and then an in-person interview.
Your personality and motivation play a big role in the choices of retail recruiters. Many candidates will get an interview, and some will even have the same professional profile, but your way of expressing yourself, your temperament, enthusiasm, and personal touch will make a difference. Clearly show your interest: why does this company in particular appeal to you? What added value do you have for the company and its customers?
RONA's ÉricMéthot affirms, "What's most important to us is the candidate's profile, what sets that person apart from others—his or her values, and character. If we hire the candidate, he or she will contribute to the company's distinctive image." Professional experience in a similar retail job will of course be a significant asset. But if you don't have any experience or are coming from another field, don't get discouraged—retail recruiters often give motivated juniors a chance. Prior related training is not necessarily required, as many stores provide their own internal training.
Before a candidate meets the recruiter, an initial interview is usually done by telephone. This allows the recruiter to determine the candidate’s interest for the job, working conditions, schedule, etc. . . . and to set a time for the face-to-face interview. A telephone interview often lasts less than half an hour. Don’t overlook this step because it is crucial for what comes after.Prepare for it thoroughly: do your homework on the company and the job, have your CV at hand, and psychologially prepare yourself to take the call. If the recruiter calls at an inconvenient time, don’t hesitate to ask him or her to call back, and fix a time.The next step is to meet the recruiter face to face. This interview can last more than an hour, and may be drawn out over several sessions. Your aspirations, experience, education, qualities. . . will be addressed. The recruiter(s) are trying to see if your personality clicks with the corporate culture and the existing team. “The interview questions mainly serve to validate whether the candidate’s values match those of the company,” specifies ÉricMéthot, RONA Canada Senior Manager, People and Culture department.Specific questions will also be asked to check the candidate’s skills and his or her ability to perform the duties of the job to be filled. Often, one or more role-playing exercises complete the questions to test the candidate’s behaviour with respect to likely on-the-job situations. In these cases, the key is not to panic: just imagine yourself in a specific situation and react naturally, without trying to come up with the perfect answer.For example, the employer can ask a potential cashier, “What would you do if a customer told you he had given you $20, and you were sure that he had not?” Or, in an interview for a customer service representative, “How would you react if a customer asked you a question you didn’t know the answer to?”Once again, preparation is essential: you should anticipate the questions you will be asked to answer and do some research on the company and the job. Make sure you are well groomed and prepare a few questions to ask at the end of the interview to show your interest.
Keep it simple. Everything. As much as possible. Write short emails. Cut unnecessary material from your resume. Show them how you'll make it easy for them. Give them fewer decisions. Ask; don`t tell.Demonstrate strong biz case and show prospective employers the value they'll get from hiring you. Help them see how they'll achieve their primary business objectives and how you can contribute to them.Minimize the risk. Demonstrate your personal competence upfront. Talk about experiences with similar customers, employers or situations. If you aren't prepared, you aren't credible. Make sure every meeting with you is well worth their time.When you do those things, you will be irresistible. And that's exactly what you want.
Screening; what is the quality of your online presence?Are you on LinkedIn, Facebook or Twitter?
Each question potentially may be asked using different words, but every question, however it is phrased, is just a variation on one of these topics: Strengths, Motivation, and Fit.
If you’re the one being interviewed, prepare by thinking through examples that illustrate your strengths, what motivates you about the organization and role you’re interviewing for, and the fit between your own preferences and the organization’s Behaviors, Relationships, Attitudes, Values, and Environment (BRAVE). But remember that interviews are exercises in solution selling. They are not about you.Think of the interview process as a chance for you to show your ability to solve the organization and interviewer’s problem. That’s why you need to highlight strengths in the areas most important to the interviewers, talk about how you would be motivated by the role’s challenges, and discuss why you would be a BRAVE fit with the organization’s culture.
Are there any you’ve heard about?
The wealth of opportunities in retail allows you to grow and find your niche.
Retail is full of career possibilities, and there is something for just about everyone.
Employment Skills Access Program | Capilano University Gerry Spitzner | retailSOS.ca March 19, 2012
Overview of retail industry What‘s going on in retail, right now Share insights with you retailSOS.ca | Gerry Spitzner 2
What the future looks like Where to look for a job (where do I start ?) Who do I contact? What skills do I need to work in retail? How to contact a retailer for work How to approach a retailer for work Interviewing Careers in retail Self-employment retailSOS.ca | Gerry Spitzner 3
AR = Accounts Receivable CRM = Customer Relationship Management DSD = Direct Store Distribution EDI = Electronic Data Interchange EFT = Electronic Funds Transfer EDLP = Everyday Low Pricing OTB = Open-to-Buy retailSOS.ca | Gerry Spitzner 4
POS= point of sale POP= point of purchase WMS= warehouse mgmt system SKU= stock keeping unit MOM= minimum order multiple CPG= consumer package good POG = Plan-o-gram retailSOS.ca | Gerry Spitzner 5
This packet of thought starters isjust that; a starting point. retailSOS.ca | Gerry Spitzner 7
Retail is one of the most diverse industries touching the lives of Canadians from coast-to-coast. ◦ In Canada, retail sales were $425.3 billion in 2008, following gains of 5.8% in 2007 and 6.4% in 2006. ◦ The largest employer in Canada employing over 2 million people. ◦ It‘s an industry that provides 1 out of every 8 Canadian jobs. ◦ Over the past few years, retail has become a deliberate career choice for many people. retailSOS.ca | Gerry Spitzner 8
◦ Retail is a fast-paced, energetic industry with a wide variety of growth opportunities.◦ There are more than 220, 000 retail establishments in Canada.◦ The retail trade represents close to 10% of all Canadian Business establishments.◦ Retail trends indicate that big box retailers and specialty niche retailers have been quite successful over the past 5 years.◦ The largest company in the world, Wal-Mart, is a retailer! retailSOS.ca | Gerry Spitzner 9
What is the real purpose of a business? Is retail a career or stepping stone to something else? Do you have ―Canadian work experience‖? The myth of Canadian work experience. How do I get Canadian Work Experience? retailSOS.ca | Gerry Spitzner 10
Definitions and overview of theindustry in Canada and BC retailSOS.ca | Gerry Spitzner 11
This industry is the largest employer in BC, ◦ providing just over 15% of all the jobs in 2008 and generating 12% of the province‘s total GDP. What‘s included in wholesale & retail trade? ◦ in the business of re-selling goods that have been purchased from suppliers. ◦ bring goods produced in the province, or imported from other regions and countries, to the marketplace where they can be purchased by consumers. retailSOS.ca | Gerry Spitzner 12
Wholesalers usually supply goods for resale or industrial use ◦ thought of as ―middle men‖ who supply goods to industrial or business customers, such as retailers, restaurants, manufacturers, or construction companies ◦ typically operate from a warehouse or office space that is not necessarily designed to attract walk-in customers. ◦ often located in industrial areas of cities, from which goods can be distributed and delivered directly to their clients. ◦ often referred to as logistics or supply chain retailSOS.ca | Gerry Spitzner 13
BC wholesalers of building materialsand food, beverages & tobacco product Source: Statistics Canadaaccounted for 45% of total sales in 2008 retailSOS.ca | Gerry Spitzner 14
Retailers generally deal directly with final consumers ◦ main characteristic is that they sell goods primarily to consumers or households. ◦ retail outlets are usually designed to have display areas where customers can see merchandise available for sale. ◦ they cater to walk-in traffic, so they‘re often located in city centres or suburban areas. ◦ supermarkets, gas bars, drug stores, furniture outlets, ―mom and pop shops‖, hardware stores, car lots, mobile home dealers, garden centres, office supply, computer stores, building materials, plumbing, and electrical supplies. retailSOS.ca | Gerry Spitzner 15
Some retailers sell directly to customers… ◦ establishments that sell via infomercials, vending machines, door- to-door sales, by in-home demonstrations, or by mail order and some retailers only sell products online. …and some stores are not included in the retail industry ◦ a produce stand at a farm considered part of the farming operation. ◦ a bakery that produces and sells baked goods onsite is included in the food manufacturing industry. ◦ photofinishing shops primarily in the business of developing pictures are part of the personal & laundry services industry ◦ and maintenance & repair shops have their own industry group. retailSOS.ca | Gerry Spitzner 16
Automotive product retailers accountedfor nearly a third of total retail sales in Source: Statistics Canada2008 retailSOS.ca | Gerry Spitzner 17
An industry in transition ◦ many changes in recent years driven by technological and market developments ◦ characterized by a mix of small, privately owned and operated establishments, and chain stores that have multiple outlets. ◦ chain stores include local chains, as well as regional, national and international operations. ◦ more than half of all retail purchases in BC are made at chain stores. retailSOS.ca | Gerry Spitzner 18
Chain store purchases are accounting fora growing share of retail spending in BC Source: Statistics Canada retailSOS.ca | Gerry Spitzner 19
Some of the most significant retailing innovations have originated in the US ◦ For example, supermarkets were an American innovation retailSOS.ca | Gerry Spitzner 20
US retail giants have brought changes to retailing in Canada ◦ marketing concepts such as everyday low pricing, big box retailing, warehouse club stores, dollar stores and specialty store chains ◦ which only stock certain types of goods such as sporting equipment and clothing, computer products, or craft and office supplies ◦ shopping malls, main street ―scape‖, power centres and outlet malls all originated in the US retailSOS.ca | Gerry Spitzner 21
Big box retailers, factory outlets and warehouse clubs ◦ emphasis on self-service, bulk buying, or do-it-yourself assembly. ◦ stores are typically warehouse-style. ◦ big box retailers can often sell goods—ranging from clothing and food to furniture and appliances—at very competitive prices. ◦ factory outlets are able to offer their products to consumers at reduced prices. Low overhead. ◦ warehouse clubs offer products in bulk, and at discount prices, to customers who pay a fee to join. retailSOS.ca | Gerry Spitzner 22
New technologies to manage inventories retailSOS.ca | Gerry Spitzner 23
The ―Wal-Mart‖ effect ◦ Canadian chain stores have changed their marketing strategies in order to compete with stores like Wal-Mart. retailSOS.ca | Gerry Spitzner 24
Retailing has become more efficient, but more uniform than it used to be. But there has also been a cost... ◦ since some of the diverse and unique features offered by small independent retailers have been lost. So how does all this affect consumers? ◦ able to purchase brand-name goods at lower prices. ◦ can find virtually the same stores, offering the same products, in shopping malls all over North America. ◦ the types of goods offered for sale, and the retailers stocking them, have become more uniform. ◦ IND retailers offering unique products are not as common as they used to be. retailSOS.ca | Gerry Spitzner 25
Internet shopping is popular… ◦ increasingly popular source for shoppers looking for books, clothing, shoes, flowers, housewares, specialty food, health & beauty products and even construction supplies. ◦ many retailers offer products online as well as in their stores retailSOS.ca | Gerry Spitzner 26
What do Canadians buy online? Source: Statistics Canada Just about anything they want. retailSOS.ca | Gerry Spitzner 27
…but most purchases are still made at retail outlets retailSOS.ca | Gerry Spitzner 28
Changing consumer habits affect retail trends ◦ People are becoming increasingly busy, and have less time to prepare meals. ◦ Food retailers have responded by providing fresh salads, sandwiches, packaged casseroles, hot food, and other ready to serve items in their deli dept‘s. ◦ not uncommon for supermarkets to have in-store pharmacies, flower shops, and even bank branches ◦ also sell clothing, books and other dry goods, and rent out cleaning equipment ◦ customers benefit from ―one-stop‖ shopping when they go to pick up their groceries retailSOS.ca | Gerry Spitzner 29
The ―one-stop shopping‖ idea is catching on. ◦ general merchandisers are including grocery departments in their stores ◦ other types of stores are carrying products that they previously did not stock For example, some pharmacies now sell a wide range of fresh and packaged food products, ◦ as well as clothing, housewares, electronics, and small appliances in addition to the traditional prescription drugs, OTC‘s and toothpaste, mouthwash, deodorant, shampoo etc. retailSOS.ca | Gerry Spitzner 30
Retail has changed a great deal in last two decades. ◦ changes have fundamentally altered the way the business works and what types of jobs are available ◦ Supermarket chains hire chefs, cooks, and dishwashers to prepare and package take-home meals. ◦ Stores that use just-in-time inventory processes may need more truck drivers but fewer shelf stockers. ◦ Book dealers who sell their products online don‘t need front- line sales clerks, but they do need mailroom and warehouse workers and computer operators to run their business. retailSOS.ca | Gerry Spitzner 31
These are just a few examples of how changes in the industry have affected employment characteristics. retailSOS.ca | Gerry Spitzner 32
Measuring output in wholesale & retail trade ◦ For wholesalers and retailers, the value of production is not the same as total sales. ◦ Selling prices include the cost of goods sold plus a margin, which is a measure of the value of the services provided by a wholesale or retail establishment. ◦ Margins cover expenses such as operating storage or retailing facilities, fuel & trucking services, supplies, rent and wages as well as a return to the owner. ◦ In some cases, the margin represents a relatively small percentage of the final selling price. i.e. cars retailSOS.ca | Gerry Spitzner 33
Margin rates are highest in retailing ◦ they average about 29%. ◦ clothing retailers usually have the highest margin rates (typically about 50%), motor vehicles and gasoline tend to have lower margin rates (usually less than 20%). ◦ higher margin rates do not necessarily mean higher profits. ◦ they simply reflect differences in the cost of providing services. ◦ margins in self-serve establishments are usually lower than in more service-intensive retailing businesses. retailSOS.ca | Gerry Spitzner 34
In wholesaling, margin rates are lower ◦ average about 20% of operating revenues ◦ there is a lot of variation in wholesale margins ◦ range from less than 10% for wholesalers of pharmaceutical products ◦ to more than 30% for those wholesaling motor vehicle parts, office and professional equipment, and apparel. retailSOS.ca | Gerry Spitzner 35
Margin rates reflect differences in the types of services provided by retailers and wholesalers For example... ◦ Superstore vs. Whole Foods or Thrifty‘s ◦ Shoppers Drug Mart vs an IND drugstore ◦ The Bay vs Sears ◦ Clearlycontacts.ca vs Iris ◦ WalMart/Zellers vs Winners ◦ Wholesalers vary services based on upcharge retailSOS.ca | Gerry Spitzner 36
Retail trade employs nearly 12% of the province‘s workforce ◦ retail trade is a much bigger employer than the wholesale trade industry. ◦ there were three retail workers for every worker in the wholesale industry in 2008. ◦ retailing is a labour-intensive activity ◦ it takes a lot of effort to run a store = more people ◦ wholesale establishments are meant to be functional rather than inviting. normally don‘t require as many staff to operate retailSOS.ca | Gerry Spitzner 37
Retail trade accounts for a much larger share of total employment than wholesale ◦ nearly a third of the people who work in the retail industry are employed part-time, so the job count in retail trade is higher ◦ the average for all industries is one in five ◦ in wholesale trade, only one in 10 workers has a part-time job retailSOS.ca | Gerry Spitzner 38
What are the most common occupations? ◦ 53% of the jobs in this industry are in sales and service occupations ◦ in wholesale workers are primarily technical sales specialists, and sales representatives ◦ in retail they‘re mainly salespeople, cashiers, supervisors, or clerks and shelf stockers ◦ business, finance and administration (18%) include office clerks, secretaries and shippers and receivers ◦ management (15%) is the next most common occupation. retailSOS.ca | Gerry Spitzner 39
Sales and services are dominant occupations retailSOS.ca | Gerry Spitzner 40
How many people work in wholesale & retail trade, and how much do they earn? ◦ wholesale & retail trade was the province‘s biggest employer in 2008 ◦ 75% of workers were in retail trade, while one in four (25%) worked in wholesale establishments ◦ average worker in the industry earned $16.76 an hour and spent 35 hours on the job each week. ◦ average wages were $15.21 in retail; wholesaling industry $21.89 ◦ typical worker in BC earned $21.46 per hour and spent 36 hours on the job in 2008 retailSOS.ca | Gerry Spitzner 41
Employment in wholesale and retail trade is very seasonal, peaking in December Source: Statistics Canada retailSOS.ca | Gerry Spitzner 42
Unemployment rates in this industry are relatively low Source: Statistics Canada retailSOS.ca | Gerry Spitzner 43
Wholesale & retail are often small businesses. ◦ Eighty percent have fewer than 100 employees Source: Statistics Canada retailSOS.ca | Gerry Spitzner 44
Jobs in wholesale & retail trade are distributed among regions in much the same way as the population Source: Statistics Canada retailSOS.ca | Gerry Spitzner 45
Negatives... ◦ Sales are flat in almost all sectors ◦ Retailers hanging on to what they have ◦ Minimum wage increase in BC, May 1st is having a ―ripple‖ effect on existing staff; hiring and wage increases Positives... ◦ American retailers are looking to Canada for growth ◦ Canadian economy is stable; interest rates are stable ◦ Tourism industry strong; especially from China ◦ Canadian retailers preparing for Target opening 2013 ◦ 2012 looking brighter; predictions that retail sales will rise 5.2 per cent, with supermarkets and food & drug showing improvements retailSOS.ca | Gerry Spitzner 50
The retail environment is changing rapidly. ◦ Consumer adoption of emerging technologies has dramatically changed shoppers‘ behaviours. ◦ Stores are now becoming just one part of a larger, more connected and complicated customer experience. Retailer readiness for tomorrow‘s store. ◦ the future of the evolving retail environment ◦ three areas of necessary change: the physical space, the store talent and the process and systems. retailSOS.ca | Gerry Spitzner 51
Target coming to Canada in 2013; hiring their own staff Sears ( downtown Vancouver ) closing Oct 2012 New outlet mall and Lower Mainland largest mall announced for Tsawwassen; opening 2014 YVR proposed new mall; Russ Baker Way Marine Gateway project; Cambie and Marine Drive Studies have shown Lower Mainland is under ―stored‖ On going expansion and renovation of shopping malls retailSOS.ca | Gerry Spitzner 52
Unemployment rate ◦ The percentage of unemployed people in retail depends on the type of job. ◦ It is around 7% for salespersons, 4% for buyers and 2% for store managers. ◦ The national average is around 7,6%: Newfoundland and Labrador has the worst rate (13,7%), whereas BC has one of the lowest unemployment rates in Canada (6.9%). Source : Statistics Canada, 2010 and Détail Québec 2011 retailSOS.ca | Gerry Spitzner 56
In 2008, for all retail jobs : ◦ 26% of employees made between $15,600 and $20,700 ◦ 7% of employees made between $36,400 and $41,548 ◦ 2% of employees made more than $78,000 Source : Job Futures, Retail Council of Canada, 2006, Statistics Canada, 2008 retailSOS.ca | Gerry Spitzner 62
According to Workopolis the top 10 industries planning to hire in Canada in Q2, 2012: ◦ Mining 21% ◦ Transportation & Public Utilities 16% ◦ Construction 15% ◦ Services 15% ◦ Wholesale & Retail Trade 15% ◦ Manufacturing – Durables 13% ◦ Manufacturing - Non Durables 13% ◦ Finance, Insurance & Real Estate 10% ◦ Education 8% ◦ Public Administration 6% Source: Manpower Employment Outlook Survey, March 15, 2012 retailSOS.ca | Gerry Spitzner 63
Recruiting outlook continues to be excellent ◦ Retail job market is particularly healthy, all across Canada. ◦ Opportunities available for all kinds of profiles, whether in- store or in support functions, full- or part-time work, in management or in direct sales. ◦ Good health of the Canadian economy is benefiting all businesses—large chains and small stores, urban and rural. ◦ There are many opportunities and employers have ambitious policies in place to train and retain their personnel. retailSOS.ca | Gerry Spitzner 64
Retail is a high-energy industry thatprovides job opportunities in amultitude of diverse areas. retailSOS.ca | Gerry Spitzner 65
The advantages of working in retail are many and are not well known by the general public. the work can be fast paced, but worth it when the great career opportunities are taken into consideration. Professional development, versatility, flexibility, training, diversity—all these and more are certain to please all types of people profiles. retailSOS.ca | Gerry Spitzner 66
Why I work in retail... Is Retail right for you? ◦ choosing a career is not always easy, especially for people who aren‘t sure exactly what it is they want to do. ◦ for anyone who enjoys interacting regularly with the public, often times showing off the latest products or fashions, retail may be just the answer. ◦ if variety is what you are looking for in a career, retail can provide it. ◦ if stability and structure is what you are looking for, retail has that! ◦ whether your strength is in creative endeavors or strategic analysis, there are fulfilling jobs in both of those areas ◦ retail can provide options for almost any personality type. retailSOS.ca | Gerry Spitzner 67
Common misconceptions answered by the real facts. ◦ "Graduates don‘t work in retail" - actually 29 per cent of all recent graduates working in management roles are working in retail ◦ "Retail is a job with limited prospects" - in fact, retailers have excellent training programmes and offer many different career choices ◦ "Working in retail means low pay" - not true, there are a wide range of salaries starting from Minimum Wage up to Executive Salaries ◦ "You need to have lots of experience to get a job in retail" - in reality, having a positive attitude and being a good communicator are more important than lots of experience retailSOS.ca | Gerry Spitzner 68
Flexibility ◦ while having a degree is always a plus in the world of work, it isn‘t a prerequisite to enter the retail field. ◦ retailing is a great profession for anyone who wants to work part-time since it offers the flexibility that they require ◦ flexibility with the hours, flexibility with store locations in multinational retail chains, and flexibility with regard to background and work experience retailSOS.ca | Gerry Spitzner 70
Perks ◦ aside from the on-the-job training offered ◦ working for a retail company that offers the kinds of products the job seeker regularly buys can go a long way in making the work environment an enjoyable one ◦ add to that the employee discounts, which most retailers offer, and it could be a match made in heaven retailSOS.ca | Gerry Spitzner 71
Variety ◦ when most people think of retail, they think only of the sales associates out on the floor stocking shelves or working the register. ◦ retail offers a much larger range of opportunities. ◦ for individuals with college degrees there may be programs in management training or career paths into the regional or corporate level. ◦ someone might start in the retail outlet working as a sales clerk, but opportunities as assistant manager, manager, district manager as well as corporate positions in marketing, merchandising or buying, among others, exist. retailSOS.ca | Gerry Spitzner 72
Growth ◦ According to a recent January report on Monster.ca British Columbia will be home to some impressive jobs growth in 2012. ◦ There will be above average increases in Non-Commercial services, as well as in Wholesale and Retail Trade. ◦ This along with the current decline in interest by many new graduates to enter the retail field, leaves a lot of great opportunities for future personal growth. retailSOS.ca | Gerry Spitzner 73
Abundance ◦ Recent numbers indicate that retail is the largest service industry in the country employing approximately 2M Canadians. ◦ Means there are a lot of employers as well as jobs and careers to choose from. ◦ Want to relocate from one province to another? Retail experience can land the job seeker a job in the new town. There are a lot of other retailers out there to work for. ◦ Though many job seekers today have a misperception that jobs in retail pay low and lack growth potential, the fact is that retail offers more than just cashier and sales associate positions. ◦ Positions in the retail field may involve information technology, marketing, and communications, loss prevention, finance, and merchandising. retailSOS.ca | Gerry Spitzner 74
The retail industry is an exciting andstimulating work environment.Not only is the work varied andchallenging, its rarely boring. retailSOS.ca | Gerry Spitzner 75
Cashier ◦ cashiers responsibilities overlap somewhat with that of a sales associate in that they are both frontline staff and responsible for making sales. ◦ in some store environments they have less of a focus on initiating sales and instead focus on completing the transaction or closing the sale. Sales Associate ◦ retailers are beginning to demand a lot more from their frontline staff; as a result, trained, professional associates are becoming the standard on the retail frontlines. retailSOS.ca | Gerry Spitzner 76
Assistant Store Manager ◦ help the managers oversee sales, operations, personnel and merchandising to achieve the goals and standards set by the company. ◦ the position is the store managers right hand: they assume responsibility of the store when the manager is not present. Merchandise Manager ◦ assist the store manager in directing all activities related to customer service, merchandise flow, store maintenance, expense management, shortage prevention and sales support functions Visual Merchandiser ◦ has become a powerful component of retail. ◦ widely used to enhance in-store space planning, design and layout to make an easier, more attractive and powerful shopping experience for consumers. retailSOS.ca | Gerry Spitzner 77
In-Store Marketing Manager ◦ works with the merchandising and store managers on all in-store marketing initiatives ◦ in-store marketing pertains to all store signage, point-of-sale material, and event/sale in-store marketing strategies. Store Management ◦ responsible for all aspects of successful store operations including all elements of sales, operations, personnel and merchandising. District Managers ◦ responsible for providing support and guidance to a group of assigned stores and ensure operation standards are being met. retailSOS.ca | Gerry Spitzner 78
Assistant Buyer ◦ assist the buyer and/or associate buyer with selection and procurement of merchandise. Associate Buyer ◦ responsible for merchandise development, and marketing and financial management of a particular area of business. Buyer ◦ lifeline of a retailer; they select and procure merchandise to be sold. ◦ plan advertising, displays and sales promotions. retailSOS.ca | Gerry Spitzner 79
Category Managers ◦ define retail categories (or product lines) as strategic business units. Inventory Analyst ◦ use multi-stage inventory optimization to help make retailers more efficient. ◦ determine the appropriate inventory levels at each supply chain facility by Stock-Keeping Unit (SKU). Trend Forecasting ◦ trend identification, assortment planning, selection and procurement, supply chain management and logistics. retailSOS.ca | Gerry Spitzner 80
In-Store Marketing ◦ responsible for driving the development plan for all in-store initiatives that are funnelled down to store level. Customer Relationship Marketing ◦ retailers are now shifting to a relationship-based view of the buying process. Branding ◦ combination of a product or services public image. ◦ overall goal is to create marketing and advertising strategies that fashion an image around the brand retailSOS.ca | Gerry Spitzner 81
Benefits Director ◦ oversees the development and distribution of all HR benefits information to active, retired and former employees. Human Resources Services ◦ responsible for job analysis and design, recruitment, selection and orientation, training and development, performance examination, mentoring, coaching and counselling, performance correction, rewards and economic sharing, career planning and transitions, environmental and health issues, safety, labour, management, and community relations and trends. retailSOS.ca | Gerry Spitzner 82
Administrative Services ◦ assists and support key retail functions within a retail organization. They provide daily administrative support through organization, scheduling and report development. Program Development & Training ◦ responsible for developing training for all areas of the business, including new employees, systems and professional development programs. retailSOS.ca | Gerry Spitzner 83
Strategic Development Change Management New Business Development Retail Analyst Public Relations Event Planning retailSOS.ca | Gerry Spitzner 84
Designer Planner Project Manager, Store Construction Real Estate Development retailSOS.ca | Gerry Spitzner 85
What skills do I need? What are retailers looking for? Hard skills ◦ good communication and conversation skills ◦ ability to use technology related to the job ◦ plan, organize and prioritize work Soft skills ◦ service orientation ◦ good personality, friendliness, and honesty ◦ initiative and work ethic; find ways to be productive retailSOS.ca | Gerry Spitzner 91
Intelligence ◦ The ability to make decisions quickly in a dynamic setting Drive ◦ Retailers do not want what are known as ‗bare minimum‘ employees Willingness to Learn ◦ Retailers tend to rely on part time employees, but have interest in employees who can develop into leadership and management positions Ability to Teach ◦ Much of what leaders or managers do every day involves teaching Decisiveness ◦ The ability to make smart decisions spontaneously retailSOS.ca | Gerry Spitzner 92
Most retail is self service but customers expect help when they need it and want it. Customer experience How did you make the customer ―feel‖? Serve customers; don‘t just provide customer service retailSOS.ca | Gerry Spitzner 93
Retail is a 7 day business ◦ There is shift work ◦ It is seasonal ◦ Hours get reduced; usually from the last hired on up ◦ Hours get increased; usually from the top down ◦ Duties of retail; be prepared to do anything anytime ◦ There is lifting involved ◦ On your feet all day ◦ Never done; look for a job to be done; don‘t wait for it retailSOS.ca | Gerry Spitzner 94
Retail employees usually fall into one of 4 categories: ◦ people from other industries who cant find work in their field at the moment; ◦ people who really love working retail and cant imagine being anywhere else; ◦ people who already have another job and are looking to make some extra money; ◦ and students. retailSOS.ca | Gerry Spitzner 95
Social culture in retail There is a ―social fabric‖ in most retail establishments Part of the team Part of the ―family‖ Which can sometimes lead to ―differences‖ retailSOS.ca | Gerry Spitzner 96
Most every problem in a retail job can be classified into two categories: ◦ Co-workers or Customers Co-workers ◦ If there is a co-worker that you just simply have too many issues with, here are some things you can try to deal with them: Ask for a change in where you, or they, work Ask for a schedule adjustment Try to get them to go do a job where you are not. Go find another task to do away from them. retailSOS.ca | Gerry Spitzner 97
Here is a short list of ways NOT to solve problems in retail jobs; ◦ Take up the issue with the customers - they dont need to be involved in issues that are not theirs. ◦ Take up the issue with the co-worker in front of the customers - they didnt come to see a show. ◦ Have an attitude about the co-worker in front of the customers - again, they dont need to be involved in issues which are not theirs. ◦ Try to turn people against the co-worker; this can backfire badly. ◦ Constantly complain about the co-worker to the boss - the boss will eventually start to ignore any complaints even when they are legitimate. retailSOS.ca | Gerry Spitzner 98
Here are a few things you can try when dealing with a problem customer: ◦ Get yourself through the transaction as fast as possible. ◦ Move onto the next customer as soon as you can. ◦ Acknowledge the customers problem and try to provide some sort of answer. ◦ Get the management involved. ◦ Leave the area to verify your answer or seek other options; this also helps to clear you head. ◦ Be firm without causing a scene. ◦ Stay calm. retailSOS.ca | Gerry Spitzner 99
One of the problems with working in retail settings is that workers tend to forget a few simple rules which will always prove themselves. ◦ The customer doesnt care what the procedure or policy is or why you have to follow it. ◦ The explanation you just gave the customer will be forgotten the minute they leave the building. ◦ Every question, no matter how stupid, needs an answer. ◦ The customer doesnt care about you, your boss, or anyone else during the transaction. ◦ Keep answers as simple as possible is always the best thing to do. ◦ Know when to admit you are wrong. ◦ Be willing to hold your ground when you are right. 10 retailSOS.ca | Gerry Spitzner 0
99% of the time... ◦ There are nice people who will enter your workplace; these are the ones who make the day enjoyable. ◦ There are nice people who you will get a chance to work with. ◦ When working in retail settings, remember that there is both good and bad in every day, everything, and everywhere. ◦ The world will not collapse because of a bad work day or job. retailSOS.ca | Gerry Spitzner 101
A few small lessons I have learned working in retail... ◦ People respond well to sincerity. ◦ Smiling really can help calm an angry customer down. ◦ Teenagers can actually be some of the most enjoyable customers. ◦ Never get involved with politics at work, especially if you want a reference later. ◦ Bringing in food to share is a really nice gesture, especially during the holidays when people are busy and work is hectic. ◦ Nothing is better than a footrub after a long day. retailSOS.ca | Gerry Spitzner 102
The following overview of therecruiting process will give you abetter idea of what is involved inapplying for a retail job. retailSOS.ca | Gerry Spitzner 103
How to approach companies ◦ check out the corporate Web site of companies you are interested in, not just to know them better, but also to scope out their career opportunities. ◦ consult these sites daily, since postings are regularly updated. ◦ your CV will be stored in a CV bank and your profile will come up when employers do a search for matching profiles. retailSOS.ca | Gerry Spitzner 104
How to approach companies ◦ make walk-in applications too, which can be effective, especially for smaller chains. ◦ ―pound the pavement‖ by applying in person, and give your CV directly to the person in charge. ◦ specialized recruiting (niche) boards are more targeted toward the type of job youre looking for than general job boards. Ie LinkedIn, Workopolis, Monster. ◦ You can apply online and even register to receive job offers matching your profile by e-mail. 10 retailSOS.ca | Gerry Spitzner 5
On the corporate side... ◦ Companies first of all check out their pool of applications, essentially comprised of unsolicited applications. ◦ They may also post the job internally, solicit their contact network or attend job fairs. ◦ If these initial efforts fail, they generally run an ad on an online job board, their own site, the papers or in flyers. ◦ Then comes the CV collection step, in which all the CVs received online and by mail are gathered together, analyzed and sorted by recruiters. ◦ Promising applications are put aside at this step, and the people contacted for a phone and then an in-person interview. 10 retailSOS.ca | Gerry Spitzner 6
What recruiters are looking for... ◦ Your personality and motivation play a big role in the choices . ◦ Many candidates will get an interview, and some will even have the same professional profile, but your way of expressing yourself, your temperament, enthusiasm, and personal touch will make a difference. ◦ Clearly show your interest: why does this company in particular appeal to you? ◦ What added value do you have for the company and its customers? retailSOS.ca | Gerry Spitzner 107
What recruiters are looking for... ◦ Whats most important is the candidates profile, what sets that person apart from others—his or her values, and character. ◦ Will he or she contribute to the companys distinctive image. ◦ Professional experience in a similar retail job will of course be a significant asset. ◦ But if you dont have any experience or are coming from another field, dont get discouraged—retail recruiters often give motivated people a chance. ◦ Prior related training is not necessarily required, as many stores provide their own internal training. 10 retailSOS.ca | Gerry Spitzner 8
Before a candidate meets the recruiter, an initial interview is usually done by telephone. ◦ Before the call; prepare for it thoroughly; do your homework on the company and the job ◦ next step is to meet the recruiter face to face ◦ questions mainly serve to validate whether the candidate‘s values match those of the company ◦ questions will also be asked to check the candidate‘s skills and his or her ability to perform the duties of the job to be filled ◦ anticipate the questions you will be asked to answer and do some research on the company and the job 10 retailSOS.ca | Gerry Spitzner 9
Retail recruiters ◦ J. Ross Retail Recruiters; http://www.jrossrecruiters.com/ ◦ Integral HRM; http://www.integralretail.ca/ ◦ Campbell Edgar; http;//www.retailcareers.com/ ◦ Mindfield Group; http://www.mindfieldgroup.com/ Best job boards for retail ◦ Retail.ca ◦ Workopolis ◦ Monster retailSOS.ca | Gerry Spitzner 110
Where can I get it? Shelfspace – The Association for Retail Entrepreneurs Retail Council of Canada-Canadian Retail Institute Capilano University-Retail marketing program Small Business BC retailSOS.ca | Gerry Spitzner 111
Top line sales and cash flow Customer traffic Customer profitability Staff productivity Return on investment; ROI Retailers are crazy – busy people retailSOS.ca | Gerry Spitzner 112
Keep things simple Demonstrate strong biz case Minimize the risk Prepare, prepare, prepare Thank them for taking the time to meet with you ◦ Follow up immediately retailSOS.ca | Gerry Spitzner 113
Screening ◦ I‘ve already ―Googled‖ you before I called you for an interview References ◦ Have them ready but don`t provide unless asked for them What do I look for in a candidate ◦ Attitude, Attitude, Attitude ◦ Hire for attitude and train for skill ◦ Coachable and likeable retailSOS.ca | Gerry Spitzner 114
The only three true job interview questions are: 1. Can you do the job? - Strengths 2. Will you love the job? – Motivation? 3. Can we tolerate working with you? – Fit? retailSOS.ca | Gerry Spitzner 115
Preparing for Interviews ◦ prepare by thinking through examples that illustrate your strengths, ◦ what motivates you about the organization and role you‘re interviewing for, ◦ and the fit between your own preferences and the organization‘s Behaviors, Relationships, Attitudes, Values, and Environment (BRAVE). ◦ remember that interviews are exercises in solution selling. Think of the interview process as a chance for you to show your ability to solve the organization and interviewer‘s problem. They are not about you. retailSOS.ca | Gerry Spitzner 116
What to expect... ◦ 90 day probation period ◦ Signing papers; store policies ◦ Employee handbook ◦ Dress code Orientation ◦ Sometimes a ―buddy‖ is assigned Training ◦ At chains: usually a combination of on the job and video ◦ At IND‘s: usually just on the job retailSOS.ca | Gerry Spitzner 117
According to BC Business magazine the Top 5 Retail companies to work for in BC are:1. Pharmasave2. Flight Centre3. Tom Harris Cellular-TV-Internet4. Lazboy Furniture5. Mr. Lube retailSOS.ca | Gerry Spitzner 118
I‘ve heard good things about these retail chains; ◦ London Drugs ◦ Save-On Foods ◦ Indigo Books and Chapters ◦ Pet Smart ◦ Thrifty‘s ◦ Bed, Bath and Beyond ◦ Home Depot ◦ Rona ◦ Mountain Equipment Co-Op retailSOS.ca | Gerry Spitzner 119
Hard skills ◦ Knowledge of Leasing ◦ Negotiation Skills ◦ Fundamentals of Financing and Accounting ◦ Project management Soft Skills ◦ Insights into complexity of issues involved in leading change ◦ Recognize your personal values and define work/life balance ◦ Cultivate a calm, clear mind even in times of stress ◦ Lead strategic change initiatives retailSOS.ca | Gerry Spitzner 121
Create your team of experts ◦ So you can do what you do best and they can do what they do best The first three people you need ◦ Lawyer; with Employment Law and/or leasing experience ◦ Accountant; with Tax Planning experience ◦ and a Banker; preferably with retail accounts retailSOS.ca | Gerry Spitzner 122
Create your team of experts The next person you need ◦ Mentors and advisors Then you need (if starting new) ◦ Commercial real estate agent ◦ A great general contractor that can get and keep the trades focused Then you need (if purchasing) ◦ Business broker retailSOS.ca | Gerry Spitzner 123
1. Develop a Business Plan ◦ This is an essential step and critical for the planning and viability of your business. 2. Have you undertaken extensive market research? ◦ Market research is a vital part of your Business Plan, including creating a viability report (Market Feasibility Study) 3. Do you need additional financing? ◦ Banks and other lenders or investors will require a written business plan 4. Consider and select the most appropriate structure to operate your business ◦ Partnership Agreement if applicable and Corporation or Sole Proprietor retailSOS.ca | Gerry Spitzner 124
5. Submit your business name request (NR) for approval ◦ Recommend that you conduct a domain name search and put a hold 6. Incorporate your business either through a lawyer or yourself online ◦ Corporations are automatically assigned a Business Number (BN) for corporate income tax purposes 7. Review Licensure Guide from Municipality ◦ Are there any restrictions? 8. Open a business bank account ◦ Visit your financial institution with a copy of your Business Registration Certificate retailSOS.ca | Gerry Spitzner 125
9. Register the domain name of company 10. Open accounts under your Business Name (BN) as required for payroll, GST/PST (HST). ◦ You MUST open a GST/PST/HST account if your sales are greater than $30K 11. Contact your municipality for a business license 12. Determine whether there are any further licenses or regulations that apply to you or your business retailSOS.ca | Gerry Spitzner 126
1. As a Corporation, you must register your business for workers compensation ◦ Call WorkSafe BC 2. Open a Payroll Deductions Account under your BN which was provided with your business as part of incorporation ◦ Contact CRA 3. If you hire employees ensure you‘re aware of your requirements under the Employment Standards Act retailSOS.ca | Gerry Spitzner 127
Your Lawyer and Accountant ◦ You MUST keep detailed and accurate records for both your corporation and year end accounting Your Bookkeeper ◦ Detailed employee files and records ◦ Cash and credit card receipts retailSOS.ca | Gerry Spitzner 128
1. Identify available businesses for sale or suitable locations for a new one 2. Leasing Agreements 3. Determine a satisfactory purchase price 4. Evaluate and determine capital needs 5. Investigate & select best source of capital retailSOS.ca | Gerry Spitzner 129
Location Analysis is a Hierarchal decision… ◦ Region – Lower Mainland, Okanagan, the Island ◦ Market Area – West Van, Kelowna, Comox ◦ Trading Area – Caulfield, Glenmore, Comox ―downtown‖ ◦ Site – specific location Location Analysis ◦ Location is the most important factor; ―traffic‖ is the key ◦ Very difficult and expensive to re-locate ◦ You don‘t want to be ―one block away from success‖ ◦ Parking, Signage, Visibility retailSOS.ca | Gerry Spitzner 130
Location isn‘t… ◦ Customers may drive further to a retail business they perceive having: Better prices Better service & services Better selection of merchandise Better amenities Better hours retailSOS.ca | Gerry Spitzner 131
Leasing ◦ Most retail businesses lease (rent) their space ◦ Common is 5 years plus an option to renew for 5 years ◦ Once you sign you are obligated! ◦ Before you sign is the time to negotiate ◦ If you are purchasing an existing biz-need to get an assignment from landlord; usually this is a ―subject to‖ clause retailSOS.ca | Gerry Spitzner 132
Leasing Agreements ◦ ―Offer to lease‖ vs. ―Lease‖ ―Offer‖ is starting point where both parties negotiate lease terms Landlords have a standard ―Offer‖ form. It is at this point you try to drive your best bargain/value. ―Offer‖ usually includes ―Sunset clause‖ – date by which lease must be signed or null and void. A ―lease‖ is a written legal document. Verbal lease does not exist. A ―lease‖ specifies what the lessor (landlord) will provide and what the lessee (you) will do and pay. retailSOS.ca | Gerry Spitzner 133
Leasing terminology What is "Base rent"? ◦ Base rent refers to the minimum or base amount of rent as set out in the lease excluding percentage rents or any other additional or operating costs. What is a "percentage lease"? ◦ A percentage lease refers to a specific type of rental arrangement that applies mainly to retailers, especially in shopping centres or multiple- tenant malls. ◦ In a percentage lease, the tenant pays a fixed or base rent plus a percentage of gross income. To create this type of rental arrangement, the tenant pays "Base Rent plus % of Gross Profits". retailSOS.ca | Gerry Spitzner 134
Leasing terminology What are "triple-net leases"? ◦ Triple-net leases are the most common form of commercial lease. ◦ They can be used for retail, warehouse and industrial properties. ◦ The tenant is responsible for all of the costs of operating the building (including taxes, insurance and repairs and maintenance) in a triple- net lease. What are ―CAM‖ costs? ◦ Common area and maintenance costs; usually in a shopping centre lease. retailSOS.ca | Gerry Spitzner 135
Leasing Costs ◦ Downtown Vancouver/Victoria – YIKES!!! ◦ Langley/Surrey - $25 – $30/sq ft triple net plus CAM ◦ New locations/escalating construction costs ◦ Rural locations/old buildings; $12 – $25/sq ft Leasing example ◦ Store ―footprints‖ vary ◦ Dispensary only; 1-2000 sq ft ◦ Taxes and CAM can be $5 - $8/sq ft ◦ So, a 2K sq ft store @ $30/ft plus $5 2000 x 30=$60,000/year 2000x 5=$10,000/year Total lease cost is $70,000/12=$5,833/month retailSOS.ca | Gerry Spitzner 136
Desirable lease clauses ◦ Sublet clause – if excess space ◦ Signing incentive; first month free while setting up ◦ Leasehold improvements clause Often you get just the bare walls/floor ◦ Adequate signage – some landlords have restrictions ◦ Exclusive use clause – only store selling certain products ◦ Contingency on financing – similar to purchasing a home ◦ Whether the tenant can assign or sublet the property retailSOS.ca | Gerry Spitzner 137
If purchasing determine a satisfactory purchase price ◦ Accurate business valuations are critical in successfully buying a retail business. Business valuations are more complex and difficult than ever. Usually a multiple of earnings (EBITDA) Get expert advice from a biz broker or consultant. retailSOS.ca | Gerry Spitzner 138
Value Assessment & Price Determination ◦ Review the external business environment (i.e. the local community) ◦ Review the financial health of the business (e.g. solvency, liquidity, efficiency, sales, and profitability). ◦ Cash Flow. ◦ Assess the physical assets of the business (e.g. inventory, equipment, fixtures, technology, hardware & software, condition of the building) retailSOS.ca | Gerry Spitzner 139
Value Assessment & Price Determination ◦ Assess the *‗Goodwill‘* that will come with the business (e.g. reputation, continued patronage, knowledge & expertise, information, any special products/services) * Note: ‗Goodwill‘ is normally calculated as a multiple of annual net profit and may include number of scripts ◦ Assess the Financial liabilities of the business (eg. A/P) ◦ Assess the Financial assets of the business (eg. A/R ) ◦ Are there any outstanding legal issues or contracts? ◦ Will it be an asset or share purchase? retailSOS.ca | Gerry Spitzner 140
Identifying Financing Needs and Options ◦ A definition of ‗Capital‘: ― Wealth, in the form of cash, equipment, property, or a combination of these factors, that can be used in the production or creation of income. ‖ Areas of ‗Capital‘ need ◦ 1. Set-up capital ◦ 2. Start-up capital ◦ 3. Operating capital retailSOS.ca | Gerry Spitzner 141
Common types of financing 1. Personal financing 2. Debt financing Debt financing takes the form of loans that must be repaid over time, usually with interest. 3. Equity financing Equity financing takes the form of money obtained from investors in exchange for an ownership share in the business. Also known as "share capital". 4. ―Sweat‖ equity Build equity over time at a reduced wage rate or reinvesting part or all of salary or bonus back into the business in exchange for shares or options. retailSOS.ca | Gerry Spitzner 142
Additional Purchasing Method ◦ Junior partnership Buyer can purchase with little or no initial capital and build equity over time Seller can ease gradually out of ownership and maintain the legacy of the independent pharmacy in the community Sources of Debt Financing ◦ Banks ◦ VanCity Credit Union ◦ Government loans/BDC retailSOS.ca | Gerry Spitzner 143
Retail Division ◦ Sales Management Buying & Merchandising Retail Support Division ◦ Marketing Human Resources ◦ Business Development Store Design & Planning ◦ Product Development Logistics Management ◦ Credit, Finance & Accounting Information Management Retail Entrepreneur ◦ Franchise New Venture Start-up retailSOS.ca | Gerry Spitzner 145
Some of the great advantages of a career in retail include: ◦ Being challenged every day in a fast-paced, technology savvy, dynamic environment. ◦ Being on top of the latest trends. ◦ Meeting with all kinds of different people. ◦ Making an impact on a multi-million dollar business. A career in retail provides the best of many worlds: ◦ you receive a competitive salary, great benefits and outstanding opportunities for advancement, while the nature of the retail business is fun, fast-paced and interesting. retailSOS.ca | Gerry Spitzner 146
Retail plays an integral role in Canadian society. ◦ On top of the satisfaction of a fulfilling role in society, all retailers reward employees in many different ways: competitive salaries, benefits, training and bonuses just scratch the surface of the tangible rewards available to you. ◦ The options are limitless! Retail opens the door for opportunity, advancement and rewards! retailSOS.ca | Gerry Spitzner 147
Whoo Hoo – We‘re done! Questions? I‘m happy to stay as long as you want to talk... retailSOS.ca | Gerry Spitzner 148
Follow Twitter: @passion4retail Connect LinkedIn: Gerry Spitzner Web: retailSOS.ca Email: email@example.com Digital Biz Card: gerryspitzner.tel Digital Biz Card: retailSOS.tel retailSOS.ca | Gerry Spitzner 149