Retail Marketing
Lecture Retail Staffing
NBS-7030B
Retail Marketing & Management
Ratula Chakraborty
Professor of Business Management
Director MSc Programmes
1
Lecture Outline
Retail Organisation and Staffing
Store Staff Planning
Staff Training
Careers in Retailing
Case Study: Co-ownership at John Lewis Partnership
Purpose: to consider how retailers are organised, how store staffing is planned, the importance of store staff training, and the range and nature of jobs and careers in the retail sector
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1. Retail Organisation and Staffing
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Around 1 in 10 of the UK workforce is employed in retailing
3 million people are employed in over a quarter of a million retail businesses in the UK
Retail jobs include store operations (from sales assistant through to store manager), and specialist function roles
Specialist roles include merchandising, buying, IT, marketing, visual merchandising, human resources, logistics and finance
The size and nature of the retailer will have considerable influence over how jobs and human resources are organised
Career options: https:// www.youtube.com/watch?v=hbxtfp6vue4 (1 min)
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Retail Organisation and Staffing
4
The Process of Organising a Retail Firm
4
Retail Organisation and Staffing
5
Organisation Structures Used by Small Independents
5
Retail Organisation and Staffing
6
Basic Mazur (4 function) Organisation Plan for Department Stores
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Retail Organisation and Staffing
7
Organisation Structure Used by Chain Stores
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2. Store Staff Planning
8
Careful staff planning is crucial to the effective functioning of stores
Staffing levels might need to vary according to the number of customers (store footfall) in given time periods
Customer numbers and tasks to be performed can vary markedly across the year as well as the time of the day
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Store Staff Planning
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Staff profiling / Resource planning
Planning staff cover
Providing sufficient staff
Providing a model to control costs
Ensuring not overstaffed
“Resource planning is about having the right number of people… in the right place… at the right time”
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Store Staff Planning
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The role of the store manager
Day-to-day store managing
Managing and motivating store staff
Responsibility for maintaining the premises and displays
Overseeing stock checking, re-ordering, sales and promotions
Dealing with customer queries and complaints
Overseeing customer service and health & safety procedures
Initiating changes to improve the business
Dealing with takings and banking/security banking couriers
Serving customers when required
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Store Staff Planning
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The role of the sales assistant
Customer service and selling
Operating tills
Filling Up
Pricing
Cleaning
Merchandising
Display
Stock counts
Accepting deliveries
Checking off
Preparing goods for sale
Cash administration
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Store Staff Planning
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Planning staff cover : Small fashion retailer
Identify Customer Flow
Analyse Transactions/ Hour/Week
Convert to Man Hours Planner
Convert to Daily Staffing Planner
Calculate Man Hours Required
Variable + Fixed
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Store Staff Planning
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Developing staff cover
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Store Staff Planning
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Daily staffing planner
COVER
SALES
MON
TUE
WED
THUR
FRI
SAT
HOURS
ASSISTANT
A
9.00
9.00
9.00
D/O
9.00
9.00
5.30
5.30
5.30
5.30
5.30
37.5
B
9.00
9.00
D/O
9.00
9.00
9.00
5.30
5.30
5.30
5.30
5.30
37.5
C
9.00
9.00
9.00
2.00
2.00
2.00
15
D
10.00
10.00
10.00
2.00
2.00
2.00
12
E
10.00
10.00
10.00
2.00
2.00
2.00
12
F
12.30
12.30
12.30
5.30
5.30
5.30
15
G
12.30
12.30
12.30
5.30
5.30
5.30
15
H
12.30
12.30
12.30
5.30
5.30
5.30
15
I
12.00
12.00
12.00
2.00
2.00
2.00
6
3/4/3
3/4/3
3/4/3
3/4/3
3/4/3
4/5/4
165
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Store Staff Planning
15
Factors affecting staffing policies
Trading pattern / customer flow
Products
Individual characteristics of store
Technology / systems
Security
Calibre of staff
Skills
Availability of staff
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Store Staff Planning
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Future retail staffing implications
Shrinking pool of youth labour market
Increasing numbers of students employed
Increasing availability of older workers
Skills shortages and skills gaps
Extension of trading hours / market demands
Example: Apprenticeships for older workers
The rise of the silver apprentice (2 mins)
http://www.bbc.co.uk/news/business-11484891
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Store Staff Planning
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Staff turnover rates can be high for retailers, disrupting store staff planning and raising costs:
Costs of using fill-in employees
Severance pay for exiting employees
Costs of hiring new employees
Training costs
Costs of mistakes and lower productivity while new employees gain experience
Customer dissatisfaction due to the loss of prior employees and the use of inexperienced workers
Lower continuity among co-workers
Poor employee morale when staff turnover is high
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Questions for Discussion #1
What organisational structure would you choose for the retailer that you are developing for your group coursework?
How would you plan staff work schedule and how many people would you employ and at what times during the course of the day and week?
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3. Staff Training
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Need of training arises at different times and for different purposes
Induction and familiarisation
Regular intervals to sales staff for skill enhancement
communication skills, product knowledge, returns policy, complaints handling, etc
Training allows for improved performance and job satisfaction, while advancing promotion prospects
The investment in training can also serve to increase staff loyalty and reduce staff turnover rates
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Staff Training
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A Checklist of Selected Training Decisions
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Staff Training
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Specific Training
Specialist training in selling key products is especially important where consumers need advising with complex or expensive products
Example: Selling Mobile Phone Contracts
Currys retail training – selling mobile phones (10 mins)
http://www.youtube.com/watch?v=FNG8o7BnItk
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Staff Training
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Lack of Training
Poorly trained staff can undermine retail performance
Appropriate training is especially important in dealing with customers to deliver excellent consumer service
Poorly trained sales assistants lacking product knowledge and providing poor advice undermine retail image and reputation
Which? Secret Filming in Comet and Currys (6 mins)
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4. Careers in Retailing
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Would you like to work in the retail sector?
Not sure which job would suit you best?
Skillsmart guide (5 mins)
http://www.careersbox.co.uk/films/skillsmart/?sector=50
Graduate opportunities in retailing
https:// targetjobs.co.uk/career-sectors/retail-buying-and-merchandising/312425-four-reasons-why-retail-makes-a-great-graduate-career
Which graduate retail employer pays the most?
https:// targetjobs.co.uk/career-sectors/retail-buying-and-merchandising/324077-which-graduate-retail-employer-pays-the-most
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4. Careers in Retailing
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Would you like to work in the retail sector?
Let’s look at a few jobs in Lidl?
Lidl area manager – 3:30 mins - https://www.youtube.com/watch?v=QX60-Klwvb8
Lidl’s warehouse operations and the different types of jobs – 3mins - https:// www.youtube.com/watch?v=g9UEOww8LCk
Lidl store manager – 3 mins - https://www.youtube.com/watch?v=KDJ6xhnfyUI
Lidl customer assistant – 3:30 mins - https://www.youtube.com/watch?v=8LBN3xE_F1k
The Lidl graduate experience – 4 mins - https://www.youtube.com/watch?v=EmkIFu8nfNA
Good Luck!
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Careers in Retailing
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How do you get a job in retailing?
Some companies have had a hard time during the economic downturn, with big names disappearing from the High Street, but others are growing and taking on new staff
The retail sector offers good first-time job prospects, advancement prospects through promotion, as well as both full-time and part-time work opportunities to suit flexible working patterns
Jo Mackie, who is head of recruitment for Superdrug, the beauty chain with more than 900 stores, says it is important to work hard and seize every opportunity:
http://www.bbc.co.uk/news/business-16162761 (2 min)
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Questions for Discussion #2
What career in retailing most interests you? Why?
What personal characteristics would you bring naturally to a career in retailing and what aspects would you need to develop (e.g. through training and work-based experience) for career success?
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5. Case Study: John Lewis Partnership
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John Lewis Partnership is one of the UK leading retailers with a turnover in excess of £9bn and employing 90,000 “partners”
JLP is an employee-owned UK partnership which operates John Lewis department stores and Waitrose supermarkets
JLP is owned by a trust on behalf of all its employees who have a say in the running of the business and receive a share of annual profits through an annual bonus payment
JLP is frequently rated as one of the best British companies to work for, with a loyal workforce and very low staff turnover
JLP is renowned for its customer service and frequently rated in consumer surveys as the best retailer in the UK
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Case Study: John Lewis Partnership
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JLP’s co-ownership advantage
John Lewis – partnership spirit (4 mins)
http://www.youtube.com/watch?v=5p5QX7pqxn4
The John Lewis co-ownership programme explained (3 mins)
http://www.youtube.com/watch?v=kDBbglknn9M&feature=channel_video_title
John Lewis – being a partner (2 mins)
http://www.youtube.com/watch?v=BOqObXoRxvg&feature=channel_video_title
John Lewis partners share £194m bonus pot (2:30 mins)
http://www.youtube.com/watch?v=2tX2GiDm5Ug&feature=fvst
Just what is the John Lewis Partnership model? Should we build an economy around this model? (BBC News - 6 mins – 23/5/2012)
http://www.bbc.co.uk/news/uk-politics-18170519
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References
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Varley, R. and Rafiq, M. (2014), Principles of Retail Management, 2nd edition, Palgrave MacMillan.
Berman, B. and Evans, J.R. (2010), Retail Management: A Strategic Approach, 11th edition, Prentice-Hall.
Useful websites on retail career opportunities and training: http://www.skillsmartretail.com
Thank You!
30
Minimum
Other Tasks
Timings
Staff
2
Cleaning
2
2
2
Fill up
30 Minutes
3
Merchandising
30 Minutes
3
4
4
4
3
Delivery Tue / Fri
3
Stock Checked
90 Minutes
3
Ironed
2
Put away
2
2
Cleaning
20 Minutes
2
Cashing
15 Minutes
2
Transactions per hour
0
20
40
60
5:30 PM
4:30 PM
3:30 PM
2:30 PM
1:30 PM
12:30 PM
11:30 AM
10:30 AM
9:30 AM
Time