In February 2014, the Michael Page Retail team delivered a presentation to clients which included insights on the economy, current industry trends, salaries and the evolving labour market.
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Michael Page Retail Road Ahead Presentation
1. Presented By
Richard Wynn
Regional Director
Retail, Marketing &
Digital
Luke Marshall
Manager
Retail, Hospitality &
Leisure
Guest Speaker
Mark Daynes
CEO
Jeanswest
2. AGENDA
PageGroup overview
Areas of specialisation
What did we see in 2013?
Current industry trends
Salary & Employment Forecast 2014
Summary
6. WHAT DID WE SEE IN 2013?
Overall, similar trends to 2012 albeit far more cautious
Subdued domestic market influenced by mixed global economic conditions
China continued to slow
The US continued to grow at a moderate pace
The Euro area largely remains in recession
Slowdown in mining had a negative impact on the economy and signalled
caution to other sectors - this appears to have stabilised
Early announcement of the federal election halted business decisions
The promise of post-election movement is still yet to be fully realised
The collective effect was a relatively flat employment market
7. MICHAEL PAGE RETAIL
Candidate registrations
Candidates are looking to diversify their
capability but have limited options
Mirrors the activity in job flow
High potential for turnover in this area
due to demands of the role
Salaries are 15% higher in this area
which has retained talent
Job registrations
Increased activity in this area after a
slow 12 months
Key players are entering ‘the next
phase’
Increased desire for local candidates
across operations
Demand for specialists in Merchandise
still strong
FOOD & CONVENIENCE
7% 17%
8. MICHAEL PAGE RETAIL
Candidate registrations
Internal promotions are limited
Tough market conditions have halted
salary and performance incentives
Planners still in high demand
De-layering and restructures are high on
most companies agenda in this market
Job registrations
Highly price competitive segment of the
market, ever changing technology and
customer behaviour
Major departments stores considering
merger
Middle market struggling for identity
Heavy investment into omni-channel
has created some movement
GENERAL MERCHANDISE
22%19%
9. MICHAEL PAGE RETAIL
Candidate registrations
Restructures and shake ups have
increased talent pool
Continued investment in Merchandise
Planning
Australian retailers expanding off
shore – Asia, USA, South Africa
Luxury end still continues to buck
the trend
Job registrations
Online retailers taking a larger slice of
the pie
Local retailers investing into in-house
design teams
International retailers arriving on
Australian shores
Australia is viewed as a safe haven
against the volatility in Europe –
Projected growth = 28 international
retailers opening 220 stores
FASHION
16% 12%
10. MICHAEL PAGE RETAIL
Candidate registrations
Third year of MP dedicated discipline
Increased H&L brand exposure
Indicative of the market – Quality Vs
Quantity
Growth has slowed created employee
unrest
Interest from the passive market
remains strong
Job registrations12%
Portfolio expansion across QSR / Food
Service has slowed significantly in 2013
Elasticity of the sector ensures hiring
demand
Fewer new brands entering the market
Increase desire for senior talent across
project management & commercial
functions
HOSPITALITY & LEISURE
5% 21%
11. MICHAEL PAGE RETAIL
Candidate registrations
Global talent looking to Australia for
‘green shoots’
Off shore investors seeing retail as a
good long term investment
Significant ‘Golden Handcuff’ incentives
were paid out in 2013
Companies de-layering at senior
management level
Job registrations
MP Retail Executive 5 years in the
market
Acquisition and investment has created
opportunity within this market
Retail’s sophistication has heightened
the desire for specialist skill sets
Strategic merchants in demand to give
retailers the edge
EXECUTIVE
12% 18%
16. SUMMARY
The employment market proved to be steady throughout 2013
Continued Globalisation of the Australian market
Companies continue to focus on minimising costs
High performers at risk due to lack of financial reward
Omni-channel continues to be a major focus for traditional retailers
The outlook for 2014 continues to be cautious with some level of optimism