Why Retail Businesses Fail Part 4: 2 Deadly Mistakes That Cause Retail Fatality
Lack of Trained Staff
A friend of mine is a manager at Tesco. He knows theprofit margin of each and every product in his store. Whydoes knowing these profit margins matter? It matters for two reasons. Firstly business is about making profit andsecondly it highlights the significance of training to retail success.
As a manager at Tesco, my friend receives frequent periodic training on every aspect of running a retailbusiness. Little wonder Tesco is the second most profitableretailer in the world and the third most profitable business in the UK.
Tesco, like most successful retailers, understand the significance of staff training to the success of theirbusiness. Subsequently, they ensure that their staff are constantly trained.
It never ceases to amaze me how an individual will open a retail store worth millions of pounds only to have the store managed by someone they are unwilling to spend a few hundred pounds to train.
The two common excuses retailers give for not training their staff are:
Probably I am the only person who does not get it, justimagine this scenario: Someone, somewhere, is leaving his multi-million pound retail store in the hands of an individual and he says it is too expensive to spend a few hundred pounds to provide that person with the requisite training to manage his store well, can you imagine that?
According to a survey commissioned by Blue MartiniSoftware; retailers could be losing up to £8bn per year as a result of inadequate staff training. The survey revealed that 84% of potential customers who left stores without buying said they were going to buy from another retailer.
This means that the store they entered was unable to sell them on yes so they sold them on no.
As many as 95% of retail employees have never received any form of sales and marketing training. As a result of their inability to sell, most retail staff just stand by the sidelines as customers examine merchandise and cross their fingers hoping they will decide to buy.
Retailing is about selling. This should mean that anyone in retail needs to, at least, be trained how to sell.
If retailing is about selling and 95% of retail staff havenever received any form of sales training, is anyone still surprised that many retail businesses are going bust?
It is like a medical doctor who has never been to medical school, how many people in this world would want an untrained doctor to treat them?