OPERATIONS

Study: Retail employee turnover increasing

BY Katherine Boccaccio

Philadelphia — Management consulting firm Hay Group reported Tuesday that employee turnover levels in the retail industry are on the rise.

According to a new survey from Hay Group, an improving job market and solid first quarter sales are impacting turnover. Retailers report a median turnover rate of 67% for part-time store workers, a 33% increase over 2011. One in five retailers report that they have experienced more turnover in the first part of 2012.

“Higher employee turnover is a double-edged sword,” said Maryam Morse, national reward practice leader of Hay Group’s Retail practice. “On one hand, it’s a harbinger of an improving economy, but on the other it’s a significant challenge for retailers who will need to devote more time and resources to retention and recruiting. Retailers are very focused on profitability right now, which is likely leading to an increased demand for part-time workers, who can be scheduled to work at only the highest traffic times.”


For the remainder of 2012, 82% of retailers surveyed expect to see the most turnover among their store hourly workers. Nearly one-third of respondents say they expect to see high levels of turnover among hourly workers at distribution centers.


Hay Group’s survey analyzed responses from 54 major U.S. retailers including Ascena Retail, Carter’s, Meijer, OfficeMax, Petco, PetSmart, Ross Stores, The Limited and Zale Corp. to determine the rate of turnover for key positions within retail organizations, and related retention strategies.


The survey also found that growth in e-commerce and mobile channels is escalating a talent challenge at both corporate offices and distribution centers. With more retail and technology companies competing for the same talent, turnover rates in corporate e-commerce positions are nearly double 2011 levels. E-commerce growth has led to the development of more online fulfillment centers, creating greater opportunities and turnover among both hourly workers and management positions at distribution centers.

Over the past year, the turnover rate for hourly workers at distribution centers increased by 29%.

When asked about key tactics for reducing turnover, 61% of retailers cite career pathing and 54% point to training. Only 30% cite changes to compensation plans.

Although compensation is not the top strategy for retaining employees overall, Hay Group’s March 2012 survey of retailers’ salary budgets found that it is one of the tools used to hold on to high performers. Retailers have budgeted an average of 3.6% in merit increases for top performers this year, up from 3.2% in 2011 and notably more than the 2.8% planned for employees overall this year.

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OPERATIONS

Lowe’s realigns leadership toward improved customer experience

BY Katherine Boccaccio

Mooresville, N.C. — Lowe’s Cos. said Tuesday it has realigned corporate personnel and responsibilities to focus the home improvement retailer more closely on customer experience strategies.

Lowe’s established a Customer Experience organization, led by chief customer officer Gregory M. Bridgeford, charged with creating customer experiences that will best serve customers and differentiate Lowe’s from its competitors.

Reporting to Bridgeford will be customer experience design executive Bob Gfeller, former executive VP merchandising; chief marketing officer Tom Lamb, former as senior VP marketing and advertising; and digital interfaces executive Mike Mabry, former executive VP logistics and distribution.

The newly named operations organization will be led by COO Rick Damron. Direct reports include: Dennis R. Knowles, U.S. stores executive, formerly senior VP specialty sales and store operations support; Brent G. Kirby, sales & service fulfillment executive, formerly senior VP store operations – north division; and Gary E. Wyatt, real estate executive.

Other personnel changes include: Richard D. Maltsbarger is now business development executive, previously serving as senior VP strategy; Brian Peace is now corporate administration executive, previously serving as senior VP corporate affairs; and Doug Robinson is now head of international operations and development, previously serving as senior VP international operations and customer support services.

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F.Dallson says:
Apr-21-2013 01:44 pm

Leadership is the main
Leadership is the main feature if you want to be successful and have a power. I think that it is very important if you want to improve customer experience strategies. I totally agree with your arguments and I have to admit that I really respect your opinion about this question. It would be really interesting to hear other people opinion about it. Sincerely, Frank H. from relationship problems

F.Dallson says:
Apr-21-2013 01:44 pm

Leadership is the main feature if you want to be successful and have a power. I think that it is very important if you want to improve customer experience strategies. I totally agree with your arguments and I have to admit that I really respect your opinion about this question. It would be really interesting to hear other people opinion about it. Sincerely, Frank H. from relationship problems

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News

Kohl’s expands cause line with Fila

BY CSA STAFF

MENOMONEE FALLS, Wis. — Kohl’s has added athletic merchandise from Fila to its exclusive of Kohl’s Care collection. Available now through the end of July, the collection offers chic and stylish athletic apparel, accessories and gifts which can be found in all 40 Wisconsin Kohl’s stores and online at Kohls.com, with 100% of the net profit donated to support the fight against breast cancer, the company said.

From tees, hats and shorts marked with colorful hearts and ribbons to ear buds, arm bands and duffle bags that show support in various shades of pink, gray, and black, all items are available for only $5 and $10 each. In Wisconsin Kohl’s stores, the breast cancer cause merchandise has its own center aisle display where all items are located in one spot to make it easy for customers to support the cause.

"We are excited to once again partner with Fila Sport for the Kohl’s Cares cause merchandise program," said Julie Gardner, Kohl’s EVP and chief marketing officer. "We featured Fila Sport last fall and the collection resonated so well with our customers that we are offering it again this summer, just in time for people to get outside, stay healthy and join together to support women’s health by participating in local breast cancer walks and runs."

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