capilanou-retail overview-19mar2012

Employment Essentials: Retail & Hospitality Job

Search Employment Skills Access Program | Capilano University

Gerry Spitzner | retailSOS.caMarch 19, 2012

retailSOS.ca | Gerry Spitzner 2

Overview of retail industryWhat’s going on in retail, right now

Share insights with you

Goals


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

Objectives


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

Acronyms

5

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

Acronyms

6

IND= independent retailer UPC= universal product code QR= quick response code PO= purchase order GMROI= gross margin return on investment RDA = Retail Display Allowance RMM = Retail Merchandise Management

System


Acronyms


Thought startersThis packet of thought starters is just that; a starting point.


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.

A few facts about the retail industry


◦ 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!

A few facts about the retail industry


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?

Thoughtstarters


Wholesale and Retail Trade

Definitions and overview of the industry in Canada and BC


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.

Wholesale & Retail Trade in BC


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

Wholesale


Wholesale

BC wholesalers of building materials and food, beverages & tobacco product accounted for 45% of total sales in 2008

Source: Statistics Canada


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.

Retail


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.

Retail


Retail

Automotive product retailers accounted for nearly a third of total retail sales in 2008



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.

Retail


Retail | Chain Stores

Chain store purchases are accounting for a growing share of retail spending in BC



Some of the most significant retailing innovations have originated in the US◦ For example, supermarkets were an American

innovation

Retail | Innovation


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

Retail | Innovation


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.

Retail | Innovation


New technologies to manage inventories

Retail | Innovation


The “Wal-Mart” effect ◦ Canadian chain stores have changed their

marketing strategies in order to compete with stores like Wal-Mart.

Retail | Innovation


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.

Retail


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

Retail | Internet


Retail | Online

What do Canadians buy online?Source: Statistics Canada

Just about anything they want.


…but most purchases are still made at retail outlets

Retail | “Bricks & Mortar”


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

Retail | Constant Change


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.

Retail | Trends


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.

Retail | Why does all this matter?


These are just a few examples of how changes in the industry have affected employment characteristics.

Retail | Why does all this matter?


Retail | How do they make money? 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


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.

Retail | Margins


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.

Wholesale | Margins


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

Retail/Wholesale | Margins


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

Retail | Employment


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

Retail | Employment


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.

Retail/Wholesale | Jobs


Sales and services are dominant occupations

Retail/Wholesale | Jobs


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

Retail/Wholesale| Workers & Wages


Employment in wholesale and retail trade is very seasonal, peaking in December

Retail |Employment



Unemployment rates in this industry are relatively low

Retail | Employment Stats



Wholesale & retail are often small businesses. ◦ Eighty percent have fewer than 100 employees

Retail/Wholesale | Workforce



Jobs in wholesale & retail trade are distributed among regions in much the same way as the population

Retail | Where are the jobs located?



Categories of RetailRetail Channel Categories and Types

47

Department stores Mass & Big Box Specialty & Discount Catalogue & Internet Grocery & Drug Stores Convenience stores


Retail distribution channels

48

Within each category; 3 types

Chain stores Banner stores Independent stores


Retail distribution channels


State of retail todayWhat’s going on nationally and regionally.


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

State of the Industry | Right Now


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.

State of the Industry | Future


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

What’s going on in Lower Mainland


Retail Sales in Canada


Retail Sales in BC


Canada Unemployment Rate


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

A few retail job figures


Male/female ratio

Source : Job Futures and Statistics Canada, 2009


Part-time work



Distribution by age



Part-time

◦ Cashier : $7,789

◦ Salespeople and sales clerks: $11,240

◦ Supervisor : $16,772

◦ Store manager : $29,690

Source : Job Futures, Retail Council of Canada, 2006, Statistics Canada, 2008

Annual average salaries


Full-time

◦ Cashier : $20,140

◦ Buyer : $33,966

◦ Salespeople and sales clerks: $34,959

◦ Supervisor : $34,479

◦ Store manager : $47,193




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




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

Where are the jobs?


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.

Retail | Jobs are taking off


Careers in RetailRetail is a high-energy industry that provides job opportunities in a multitude of diverse areas.


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.

Retail | Opportunities open to all


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.

Why Choose a Career in Retail?


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



Five reasons...1. Flexibility

2. Perks

3. Variety

4. Growth

5. Abundance



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



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



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.



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.



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.



Careers in RetailThe retail industry is an exciting and stimulating work environment.

Not only is the work varied and challenging, it's rarely boring.


Cashier◦ cashier's 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.

Retail Sales Positions


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 manager's 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.

Retail Management


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.

Retail Management


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.

Buying & Merchandising


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.

Buying & Merchandising


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 service's public image.

◦ overall goal is to create marketing and advertising strategies that fashion an image around the brand

Retail Support | Marketing


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.

Retail Support | Human Resources


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.

Retail Support | Human Resources


Strategic Development Change Management New Business Development Retail Analyst Public Relations Event Planning

Retail Support | Business Development


Designer Planner Project Manager, Store Construction Real Estate Development

Retail Support | Store Design & Planning


Product Designer Merchandiser

Retail Support | Product Development


Distribution Logistics Productivity & Operations Supply Chain Management

Retail Support | Logistics Management


Bookkeeper Accountant Financial Analyst Risk Manager Internal Auditor Controller

Retail Support | Finance and Accounting


Systems Analyst Technician Web Developer/Programmer Systems Programmer Data Warehouse Specialist Virtual Retailing

Retail Support | Information Management


Working in RetailSkills, Customer Service, Employee Profiles, Co-workers, and Customers


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

Working in Retail | Skills


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

Other skills retailers look for are...


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

Working in Retail | Customer Service


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

Working in Retail | Realities


Retail employees usually fall into one of 4 categories: ◦ people from other industries who can't find work

in their field at the moment;

◦ people who really love working retail and can't imagine being anywhere else;

◦ people who already have another job and are looking to make some extra money;

◦ and students.

Working in Retail | Employee Profile


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”

Working in Retail | Co-workers


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.



Here is a short list of ways NOT to solve problems in retail jobs;◦ Take 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.



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.

Working in Retail | Customers


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 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 doesn't 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.

Working in Retail | Customers


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.

Working in Retail | Summary


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.

Working in Retail |Summary


The Job Hunt The following overview of the recruiting process will give you a better idea of what is involved in applying for a retail job.


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.

Job Hunt | Retail Recruiting Process


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 you're 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.



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.



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?



What recruiters are looking for...◦ What's most important is the candidate's profile, what

sets that person apart from others—his or her values, and character.

◦ Will he or she 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 people 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. ◦ 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

What happens during the hiring interview?


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

Where do I start?


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

Pre-employment training

112

Top line sales and cash flow Customer traffic Customer profitability Staff productivity Return on investment; ROI Retailers are crazy – busy people


What are retailers thinking about?


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

Approaching Crazy-Busy Retail People


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

Interviewing


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?

Interviewing


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.

Interviewing


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

You’re Hired!


According to BC Business magazine the Top 5 Retail companies to work for in BC are:

1. Pharmasave

2. Flight Centre

3. Tom Harris Cellular-TV-Internet

4. Lazboy Furniture

5. Mr. Lube

The best companies to work for


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

The best companies to work for


Buy or start a retail business

First decide; Franchise, banner or independent?


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

What do I need to start?


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

Who do I need to start?


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

Who do I need to start?


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

Where do I start?


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

Where do I start?


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

Where do I start?


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

What are my HRM requirements as a Corporation?


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

What are my requirements for keeping business records?


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

Key Tasks for the Prospective Owner


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



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



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



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.



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".



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.



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



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



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.



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)



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?



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



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.



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



Summary of Key Points


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

Summary | Career Opportunities


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.

Summary |Is a Career in Retail for you?


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!

Summary | Retail is a rewarding career choice.


Whoo Hoo – We’re done!

Questions?

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