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.

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

3. PAGEGROUP OVERVIEW
GLOBAL COVERAGE

4. PAGEGROUP OVERVIEW
ASIA PACIFIC COVERAGE

5. AREAS OF SPECIALISATION

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%

12. SALARY & EMPLOYMENT FORECAST 2014
SALARY & REMUNERATION

13. SALARY & EMPLOYMENT FORECAST 2014
RECRUITMENT ACTIVITY

14. SALARY & EMPLOYMENT FORECAST 2014
ATTRACTION & RETENTION – COMPANY PERSPECTIVE

15. SALARY & EMPLOYMENT FORECAST 2014
ATTRACTION & RETENTION - CANDIDATE PERSPECTIVE

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