Q&A with Shoppers World CEO on his ‘Undercover’ experience
Photos: Sam Dushey before his appearance on “Undercover Boss,” (photo, left) and after he underwent his undercover transformation (photo, right). Via CBS.com
Sam Dushey took the reins of his family business, discount department store chain Shoppers World, when he was just 27. In his 10-year stint as CEO, he has grown the company from eight stores to 40 locations in 11 states and up to $250 million in annual retail sales. But Dushey thinks Shoppers World has a much greater potential: He wants to expand the company to 500 stores nationwide.
Looking to gain what he calls “field intelligence” about his stores and employees, Dushey decided to put himself on the front lines, appearing on the hit CBS television show, “Undercover Boss.” (His episode aired on January 3, 2016, to see the full episode, click here.
To disguise himself as an entry-level employee named “Alex,” he grew a beard, dyed his dark-brown hair to a platinum blond shade, wore glasses, and put on a diamond stud earring. He took on different tasks while undercover, from working on the sales floor to marking down items for clearance to checking people out.
Chain Store Age recently spoke with Dushey about going undercover and his plans for Shoppers World.
Why did you go decide to go undercover and what was the experience like?
I’m a fan of ‘Undercover Boss’ and saw an opportunity to get some of the best intel I could for improving the family business prior to increasing the number of stores from 40 to 500.
I barely recognized myself while undercover. I visited several stores, including two in New York City (one in Brooklyn and one in Queens), one in Cleveland, Ohio, and one in Morrow, Georgia. From meeting several exceptional employees to receiving unbiased feedback from employees and experiencing first-hand what it is like to deal with faulty equipment and theft — my eyes were truly opened by going ‘undercover.’
What were your biggest take-aways from the show?
Some of my biggest takeaways from being on Undercover Boss were that I realized our employees needed to be acknowledged and rewarded. They are part of the Shoppers World family and our success is their success.
Another big takeaway that I found was that ensuring that our employees and stores had fully functioning tools would increase the employees’ success and enjoyment within the company. The employees don’t speak up because they don’t feel they or their opinions matter. But everyone matters – everyone should have a voice.
A theft occurred at one of the stores you were working in and you were told the store had no formal security. Did this incident result in any company-wide changes?
Since the episode, to ensure our employees safety, we hired two of the country’s top security and loss-prevention firms. We invested more than $1.5 million in the top loss-prevention software and surveillance.
Are you planning to make any other company-wide changes based on your experience?
Absolutely. Since the episode we also upgraded our IT and network systems, which allows for a quicker inventory scanning and smoother check out process. We are also ensuring that the employees’ voices are heard because they know their jobs better than anyone else.
Would you encourage other retail CEOs to go “undercover?”
Yes, I would definitely encourage and recommend that other CEOs go undercover. It was a great way to get real insight into the company. Chief executive officers sit in their corporate offices without knowing how the decisions they make impact their stores, customers and employees. It was the best intel I could have asked for within my company.
What is your vision for the company going forward?
Our goal is to expand to 500 stores throughout the country. We moved from being only a children’s retailer to a discount merchandise store that carries items for all ages, including housewares and home furnishings. In the future we look to expand our product offering.
Will you be entering any new markets this year?
Yes. Based on the ‘Undercover Boss’ experience, we need to improve internal operations first. The next stores we open will be the most critical to our success.
Shoppers World is a family owned business. Are there any other family members involved in its operation?
I am the only family member left in the business. I rely on my father and other family members for their feedback as they walked in my shoes.
What is your ideal location and store size?
Our ideal store locations are suburban areas where people want another option to Ross or other chain stores. We look for buildings between 50,000 and 100,000 sq. ft. We consider our stores small, medium and even large depending on the size of the space they occupy. Each stores has 50 to 100 employees.
Study: What drove online holiday sales growth?
The numbers are in and one specific device clearly served as a major catalyst for increased e-commerce sales during the 2015 holiday season.
According to the MarketLive 2015 Holiday Flash Report, smartphone revenue during the just-completed holiday season (Nov. 23, 2015 – Jan. 3, 2016) increased 50%. Overall e-commerce revenue grew 8% during that period.
In terms of online visits, smartphone growth (19%) slightly tailed overall visits (21%). However, smartphone conversion rate rose 8% to 1.3%, from 1.2%. Meanwhile, overall conversion rate plunged 13% to 2.7%, from 3.1%.
In addition, average order value (AOV) increased at a higher rate for smartphones than for overall e-commerce orders. Smartphone AOV rose 9% to $140.63 from $129.06. This brought smartphone within less than $8 of overall e-commerce AOV, which climbed 6% to $147.24, from $139.24.
According to MarketLive analysis, further improvements to the smartphone experience will be crucial in 2016. With solid gains to show for their 2015 mobile optimization initiatives, MarketLive says retailers should feel confident in making further mobile investments during 2016.
Redevelopment plans and anchor tenant announced for shopping center in New York
Mahopac, N.Y. — Heidenberg Properties announced The Stop & Shop Supermarket Company has executed a lease to occupy 54,000 sq. ft. at Lake Plaza Shopping Center in Mahopac, New York.
The new Stop & Shop will be built from the ground up, replacing the existing 24,000 sq. ft. Key Food and the 7,800 sq. ft. CVS. This redevelopment will be more than 25,000 sq. ft. larger than the two existing stores, expanding Lake Plaza Shopping Center from 141,000 to over 166,000 sq. ft.
“This project has been in the planning stages for quite some time and will be transformative,” said Robert Heidenberg, president and CEO of Heidenberg Properties. “We purchased this property as a redevelopment opportunity in June 2008 with the intent of adding value through compelling anchor tenants.” Stop & Shop currently operates 403 stores throughout New York, New Jersey, Massachusetts, Connecticut and Rhode Island, and is one of four regional divisions of Ahold USA.
Lake Plaza Shopping Center in conjunction with The Stop & Shop is slated to undergo a full renovation which will include: a new façade for the in-line tenants, modifications to the shopping center’s pylon sign, and a complete resurfacing of the parking lot including additional parking spaces, new LED lighting, and landscaping.