CapilanoU-retail overview-19mar2012

Employment Skills Access Program | Capilano University
Gerry Spitzner | retailSOS.ca
March 19, 2012

 Overview of retail industry

 What‘s going on in retail, right now

 Share insights with you

retailSOS.ca | Gerry Spitzner 2

 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


 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


 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


 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


This 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.


◦ 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!


 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?


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.


 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


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


 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.


 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.


Automotive product retailers accounted
for nearly a third of total retail sales in Source: Statistics Canada
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.


Chain store purchases are accounting for
a growing share of retail spending in BC Source: Statistics Canada


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


 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.


 New technologies to manage inventories


 The ―Wal-Mart‖ effect
◦ Canadian chain stores have changed their marketing
strategies in order to compete with stores like Wal-Mart.


 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.


 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


What do Canadians buy online?
Source: Statistics Canada
Just about anything they want.


 …but most purchases are still made at retail outlets


 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


 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 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.


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


 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.


 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.


 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 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 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


 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.


 Sales and services are dominant occupations


 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


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



 Unemployment rates in this industry are relatively low



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



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



Retail Channel Categories and Types


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


 Within each category; 3 types

 Chain stores
 Banner stores
 Independent stores


What‘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


 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.


 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


 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


Source : Job Futures and Statistics Canada, 2009


 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


 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


 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 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.


 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.


 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.


The 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.


 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.


 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.


 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.


 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.


 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


 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.


 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.


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


 Designer
 Planner
 Project Manager, Store Construction
 Real Estate Development


 Product Designer
 Merchandiser


 Distribution
 Logistics
 Productivity & Operations
 Supply Chain Management


 Bookkeeper
 Accountant
 Financial Analyst
 Risk Manager
 Internal Auditor
 Controller


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


Skills, 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


 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


 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


 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


 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.


 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‖


 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.


 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.

10

 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.


 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.


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.


 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.

10

 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.

10

 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.

10

 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

10

 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 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


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


 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


 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


 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?


 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.


 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


 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


 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


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


 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


 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


 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


 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


 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


 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


 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


 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


 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


 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


 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.


 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!


 Whoo Hoo – We‘re done!

 Questions?

 I‘m happy to stay as long as you want to talk...


 Follow Twitter: @passion4retail
 Connect LinkedIn: Gerry Spitzner
 Web: retailSOS.ca
 Email: gerry@retailsos.ca
 Digital Biz Card: gerryspitzner.tel
 Digital Biz Card: retailSOS.tel


CapilanoU-retail overview-19mar2012

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