If you ask any customer what the best thing about a local retailing store is, chances are it’ll be the unique relationships they have with the people in the store.
As a sector we pride ourselves on it. It’s our biggest USP. We’re there for a chat when you need it, a bit of banter on good days, an arm round your shoulder on tougher days, a laugh, a giggle and very occasionally a wee tear or two. All the things you’re never going to get at a supermarket or discounter.
Our USP can be summed up in just two words: our people.
We all agree that, don’t we? How many times have we heard ‘our people are our greatest asset’? So I’m going to throw something out there that might not land too well with some retailers. If our people are our greatest asset, why are we so reluctant to invest in them? Can you think of any other industry that doesn’t make a point of investing in its biggest asset?
And yes, I’m very well aware of the practical challenges of investing in people, particularly directly in terms of wages. But here’s the thing: simply paying a minimum wage simply isn’t going to cut it much longer. Yes, we can argue – and we do argue – that retailers can’t run profitable businesses if staff costs get too high. But one thing’s dead certain: you definitely can’t run a business full stop if you don’t have any staff.
The options available to employees these days are becoming more and more attractive. Many of the discounters and supermarkets are paying more per hour than convenience stores and, arguably, for ‘easier’ jobs. Working in a local retailing outlet isn’t easy if you’re doing it right.
So why should people choose us over them? It’s a ticking time bomb and the ticking is getting louder as time goes by. So is it time that we took this challenge seriously? Really seriously. It’s not going to be easy when our entire business model is built on minimum wage staff. We’re going to have to find ways to afford improved wages and conditions by cutting costs elsewhere in the business or growing profits. It’s a daunting challenge but ignoring it isn’t going to make it go away.
Do we have to go back to the drawing board and rebuild the convenience model from the ground up to focus on higher-margin categories? Do we invest in tech to reduce wage costs? Do we embrace opportunities like home delivery? The answer is likely to be all of these things and more, and many businesses have already started on that journey.
But investing in staff doesn’t always have to mean money. Giving staff responsibility, making them feel valued, respecting them and allowing them to shine doesn’t necessarily need to cost a penny. That’s exactly what we’re discussing in this issue’s cover story and there’s a lot to learn from how other retailers are embracing this challenge.
We have reached a tipping point and what we do in the next few years will have a huge impact on the sector in the decade to come.
Antony Begley, Publishing Director, SLR
Time to put our money where our mouths are?
If you ask any customer what the best thing about a local retailing store is, chances are it’ll be the unique relationships they have with the people in the store.
As a sector we pride ourselves on it. It’s our biggest USP. We’re there for a chat when you need it, a bit of banter on good days, an arm round your shoulder on tougher days, a laugh, a giggle and very occasionally a wee tear or two. All the things you’re never going to get at a supermarket or discounter.
Our USP can be summed up in just two words: our people.
We all agree that, don’t we? How many times have we heard ‘our people are our greatest asset’? So I’m going to throw something out there that might not land too well with some retailers. If our people are our greatest asset, why are we so reluctant to invest in them? Can you think of any other industry that doesn’t make a point of investing in its biggest asset?
And yes, I’m very well aware of the practical challenges of investing in people, particularly directly in terms of wages. But here’s the thing: simply paying a minimum wage simply isn’t going to cut it much longer. Yes, we can argue – and we do argue – that retailers can’t run profitable businesses if staff costs get too high. But one thing’s dead certain: you definitely can’t run a business full stop if you don’t have any staff.
The options available to employees these days are becoming more and more attractive. Many of the discounters and supermarkets are paying more per hour than convenience stores and, arguably, for ‘easier’ jobs. Working in a local retailing outlet isn’t easy if you’re doing it right.
So why should people choose us over them? It’s a ticking time bomb and the ticking is getting louder as time goes by. So is it time that we took this challenge seriously? Really seriously. It’s not going to be easy when our entire business model is built on minimum wage staff. We’re going to have to find ways to afford improved wages and conditions by cutting costs elsewhere in the business or growing profits. It’s a daunting challenge but ignoring it isn’t going to make it go away.
Do we have to go back to the drawing board and rebuild the convenience model from the ground up to focus on higher-margin categories? Do we invest in tech to reduce wage costs? Do we embrace opportunities like home delivery? The answer is likely to be all of these things and more, and many businesses have already started on that journey.
But investing in staff doesn’t always have to mean money. Giving staff responsibility, making them feel valued, respecting them and allowing them to shine doesn’t necessarily need to cost a penny. That’s exactly what we’re discussing in this issue’s cover story and there’s a lot to learn from how other retailers are embracing this challenge.
We have reached a tipping point and what we do in the next few years will have a huge impact on the sector in the decade to come.
Antony Begley, Publishing Director, SLR
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