Retail NaviGator
The Retail NaviGator - our communication to you about our research on retailing issues and the activities of the David F. Miller Center. This ongoing media change creates a direct connection to the retailing community in a way that keeps information current, direct and GREEN!
In this issue:
- The Many Hats of a Kohl's Manager
- Motivating a Team
- The Power of the Mind
- The Transformation of Sears Retail Services
- Dillard's Comes to Campus to Help with Self Presentations and First Impressions
- This is a Great Time to Graduate!
The Many Hats of a Kohl's Manager
The role of a store manager is more than what the customer sees. Store managers wear the hats of financial analyst, project manager, human resource manager, and customer service coach. Mr. Charles Smith, manager of Kohl's in Orange Park, visited the University of Florida to talk about these responsibilities. His calm professionalism and honest approach to this subject matter attracted students to ask the tough questions and explore management as a leadership opportunity.
A manager is a trained financial analyst. Mr. Smith is ultimately responsible for sales results for the store. If he knows the weekend is going to be popular with customers, he sees that the floor is replenished appropriately. He oversees payroll control, yet he must assure that there are enough associates on the floor to guarantee excellent customer service. When a monthly budget for his individual store is allocated, he needs to direct how it is spent. For example, Mr. Smith is interested in using monies to maintain the appearance of his store, but he is also mindful to provide for the comfort of his store team. "A good manager provides for two people: the customer and the associate."
A store manager also oversees all projects. Although assistant managers have individual projects, the store manager helps to guide these projects by prioritizing daily tasks, setting deadlines and following up with the team on results. Because of his experience, Mr. Smith understands great practices and can set achievable benchmarks. When it comes to customer service, the manager sets the standard. The target is excellence and nothing less.
Human resource management is another responsibility of a store manager. This responsibility involves training plans for all associates knowing that training can differ depending upon the department. When associates are not functioning up to standards, coaching and counseling are appropriate to bring the associate back up to the values standards of the Kohl's mission statement. Additionally, the store manager is in charge of interviewing, job offers, firing and appraisals. Without tending to appraisals, associates cannot improve.
A good manager invests in the store and the associates. Mr. Smith firmly believes that if you have a good boss, you have great employees who will go the extra mile for you. By setting the gold standard for management, Mr. Smith continues to lead his store to success.
Motivating a Team
When Mike Krysa first became a store manager of electronics retailer, Circuit City, he thought it was going to be a cakewalk, but he later learned otherwise. Motivating a huge team of associates to act with the same mindset and to be excited about their jobs was the challenge. Today, Mr. Krysa is the district manager of Dick's Sporting Goods in Florida. He has grown professionally since working at an electronics retailer and has perfected the art of motivating associates to be energized about retailing.
Mr. Krysa talked about a book by Napoleon Hill called Think and Grow Rich. In it, Hill focused on the successful people of his time and learned about characteristics they had in common that led them to success. These characteristics were boiled down to principles of a motivating leader. To begin, great motivators have unwavering courage as they understand that no intelligent follower will be led by a person who lacks self-confidence. Leaders have a certainty of decision and move on their own initiative, but they know where they are going before they start. They begin tasks with the end in mind and stay focused. By maintaining control and moving forward on projects, leaders are able to gain the confidence and trust of their followers
Mr. Krysa went on to explain how motivating leaders have a firm, fair and consistent approach to issues in the workplace. This sense of justice helps to earn the respect of followers. Simply put, it's not acceptable to treat one person differently than someone else.
Additionally, Mr. Krysa emphasized that students should always do more than they are paid to do and assume full responsibility for their mistakes especially when they get out of school and into their careers. This idea will help them to progress rapidly in any industry and help them to become a recognizable part of their organization. "It's a lot of work, but it's also a lot more fun and doors will open for you!" according to Krysa. Furthermore, if students want to become motivating leaders, they must grow in an organization and develop a pleasing personality treating everyone with dignity and respect.
Finally, Mr. Krysa talked of motivators having a keen sense of empathy for their team. He emphasized that by understanding and cooperating with all associates, a regular manager becomes a leader.
The Power of the Mind
When Larry Hastings, Leadership Director for Dillard's returned to the University this February, the students were primed. They knew it was going to be a stimulating learning experience! Mr. Hastings came to present about offering excellent customer and he also went the extra mile...he taught students about the power of their minds!
Mr. Hastings began his presentation by discussing the element of sameness among department stores. The challenge for the stores is to first commit to basics, but also to be decisively different. How do department stores evolve to be different? To answer the question, Hastings quoted Jerry Garcia: "You do not merely want to be the best of the best...you want to be considered the only one who does what you do." At Dillard's, the merchandise and the presentation are unique because of stylish private labels sold by a team of people with a passion for excellence. Another way to be unique is by providing caring and helpful associates. Together, these lead to excellent customer service.
By connecting with people and building relationships, retailers can succeed. In this tough economy, this is imperative. Mr. Hastings predicts that retailers will become friendlier in order to promote customer relationships, gain customer loyalty and simply stay in business. Loyalty will override price only if it the service exceeds customer expectations constantly and consistently. Alex Dillard himself has said that customers buy because they want to feel good about themselves. At Dillard's, excellent service helps customers connect a positive value with a purchase.
In order to offer great service, you need to start with some skills. There are basic skills like learning the merchandise, but there are also communication skills that are essential in offering excellent customer service. Mr. Hastings suggested we all start our day with "daily vitamins" of connectivity, which includes filling our own tank first with positive affirmations. Only then can we move on to helping others. He proposed that the power of our minds impacts how we feel and how we communicate to others and he demonstrated his point with three student volunteers. During this activity, Mr. Hastings asked the class to think positive thoughts about the volunteers. The result was the students could physically resist his forceful pull. When he asked students to think negative thoughts, in all cases, the volunteers succumbed to his force. Mr. Hastings concluded by saying, "What you put in your mind affects the strength and chemistry of your physical body, and it affects the strength and chemistry of those around you. So think positively. You will connect with customers, which will help them feel good about themselves and in turn make the sale."
The Transformation of Sears Retail Services
Ted Wells, Regional Vice President and General Manager Recruiting of Sears Holdings, recently visited the University to share an update about the Retail Services Transformation within Sears Holdings. His message came across with enthusiasm as he explained how such a large company was able to change for "the good of the customer."
This retail transformation began with merging two large companies: Sears and Kmart. At first, the largest concern was getting the merchandise to the store quickly and efficiently, but when a retailer has over 3,000 stores and employs over a half million associates, how does a company do this and preserve market share? The way to do this, according to Wells, is to put decisions about strategy and product development in the hands of the organization that is directly responsible for the particular business. Wells used the home appliance business to explain the idea. Sears Holdings has the largest market share of home appliances in the country. In the past, the business decisions for appliances went through the Chairman's office, which required a lot of time as these decisions moved through the capital organization. Once financial allocations were made, additional decisions filtered through other departments. This procedure slowed the flow of merchandise to the customer threatening Sears Holdings' grasp on the market for appliances. Under the new format, there is a vice president of home appliances and a board of directors comprised of company departmental representatives. Now, instead of going through traditional channels, decisions are made quickly and merchandise goes to market in a more efficient manner.
Since the issue of speed had been resolved, the next step was to focus on how to make the Transformation "come alive" in the store. Sears Holdings' mission was to become the preferred provider of retail services by creating a great shopping experience for the customer. To do this, Sears Holdings strives to achieve superior customer satisfaction, and enhance talent development, selling capabilities and operational execution as the focus of the successful strategy. To achieve this goal, Sears Holdings works to provide bright stores, consistent customer service, efficient and effective work processes, and system-based leadership effectiveness.
Wells explained that Sears conducts a methodical review to keep consistent and bright presentations in the store to heighten the customer experience. "It's the price of admission and it is what the customer sees." In order to offer dependable customer service, Sears Holdings developed training programs for associates based upon making the shopping experience fun when serving the customer. Work processes were re-engineered to help associates succeed in the new environment. This disciplined approach to serving the customer has worked to transform two companies' cultures into a successful strategy for one thriving company.
Dillard's Comes to Campus to Help with Self Presentations and First Impressions
A YouTube video from the movie Tommy Boy allowed for some laughs, as well as some invaluable information. Make sure you don't light the interviewer's desk on fire! Associates from the Gainesville Dillard's Store came to campus on February 23rd to address some major Dos and Don'ts of interviewing, as well as some imperative first impression guidelines. Assistant Manager, Ray Payton, stressed the importance of appropriate attire. He commented that it is very hard to pay attention to what a student is saying if they are not dressed professionally. His tips were to invest in a suit that fits well but is simple. For ladies there were a few more rules. Women should make sure that they are not wearing too much perfume or makeup, because it too can be very distracting.
Dillard's also addressed the importance of body language during an interview or when making a first impression. One of the most important issues they covered during this segment was the handshake. The handshake is one of the best ways to show an interviewer how confident you are. The perfect handshake is firm, not painful, but also not limp. Eye contact and posture can also be great indicators of confidence levels. Make sure to maintain eye contact, without staring and stand up straight. These minor things can go a far way to making a difference in how an interviewer perceives you.
Both representatives from Dillard's closed the workshop with a few personal pet peeves during interviews. They said that being late to an interview is one of the worst things you can do. It is really hard to recover from wasting the interviewer's time. They also mentioned that you should always be prepared and to practice interview questions ahead of time.
This is a Great Time to Graduate!
When John Crossman, the president of Crossman & Company speaks, everyone listens! Because he is gifted with an ability to explain difficult and intricate concepts with humor, stories and anecdotes, listeners come away with a better understanding about the topic, and as a bonus, about themselves. He began this particular lecture with a heartening announcement that 2009 is a great time to graduate!
Mr. Crossman began his presentation saying he thought this time of economic turmoil set the stage for a great time to graduate. Amongst the gasps, he clarified his statement with the story of Publix, which began its storied success during the Depression. He went on further to say that challenging times forge hard workers and dedicated employees that strive to overcome them. "Graduates of this era will be fine," Crossman assured the audience.
Mr. Crossman moved on to talk about retail development. When it comes to retailing, one cost component is the volume of the retailer. Volume determines rent. This knowledge affects how much a developer can pay for land and erect a building. Another factor in retail development is the trade area. For example, to construct a shopping center with a grocery anchor, a developer needs 10,000 people in a trade area of two square miles. Mr. Crossman discussed research on the scale of retail developments from centuries ago and revealed how they were almost identical to the scale of retail developments today. The trade areas were also two miles. There seems to be a consistency in what shoppers expect throughout the ages!
A great challenge of retail development is handling false pressures. It is common for cities to come to developers asking for a specific retailer mix. Developers need to understand the core market in order to develop the mix appropriately. For example, Celebrations, Fla. wanted specific specialty retailers for their residents, but only had 500 residents! It is difficult to develop a retail community when the market cannot support it. In this situation, the responsible developer would include retailers in the mix that could thrive in a development that matches the market it serves.
Tourism introduces unique factors to developing retail space. In mall development, retailers look at return on sales. Typically, department stores want a return on sales to average less than 10 percent. In the Florida Mall in Orlando, the average return on sales is less than 5 percent. The reason for this is that Orlando is a vacation area and customers do not return purchases once they leave Orlando. This tourist component will affect the retail mix in that mall. Retailers, as well as developers, are fully aware of how tourists shop. Crossman shared how the availability of time shares in an area dramatically affects how visitors shop, especially in grocery stores. At a glance, Orlando looks "over-retailed" when the residential population is compared to retail space in the city, but when the numbers of tourists that visit Orlando are figured into the scenario, Orlando is an average city for retail.
Retail developments have changed over the last 50 years. Shopping used to be a "downtown" affair, which evolved into mall shopping during the 1980s. In the 1990s, the center for retail was Wal-Mart, which evolved into Super Wal-Mart. Next in the sequence was the development of open-air shopping centers. This has become very popular despite climate issues. To understand why shoppers want to be outside regardless of inclement weather, retail developers need to understand consumers. A definition of the American consumer can be given in one word: busy. Some shoppers want the experience of walking outside, but most want to focus on one store, drive directly to the store, shop and get out. Malls cannot provide this. Open air markets can. Mr. Crossman commented that the evolution of open air markets has taken place because malls have lost their essence of community connection. Town centers are developed with the idea of bringing people together for a variety of reasons. They are developed with a retail mix created for the specific core markets, but they also feature libraries, synagogues and churches to mimic what used to be the downtown of 50 years ago.
This electronic newsletter from The David F. Miller Center for Retailing Education and Research is issued throughout the year to provide updates on what is happening in retailing at the University of Florida. Information regarding student outreach, jobs, internships, research and retailing connections throughout the country will be included. We hope you enjoy seeing what Gators are doing in the retail industry!
