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06 Feb 2014 Retailing & Franchaising


Ruffain Apparel at Kelowna had been without proper store manager for several months Other problems include staffing shortage Resulted in unoptimal sales figures

Important to get store on track before Back to school rush


Sold both brand name and exclusive mens apparel. 68 locations in west Canada; employees 1200 Usually found in local shopping centres and strip malls Competitors include Below the Belt, Bootlegger, Thriftys, Extreme, West 49 Brands stocked include Volcom, Quicksilver, Hurley, Billabong, DC & Element

Employee Expectations & Duties

Staff numbers ranged from 10 20; Average store has 12 people. 1 store manager, 1 assistant manager, 1 full-time associate & numerous part time associates Employees were expected to make sales through Extreme Customer Service which entailed going beyond expectations and making the shopping experience a pleasant one. Training deemed critical for both full-time and part-time

Employee Expectations & Duties

Duties of employees
Part time: assisting customers, dealing with phone, cash register, incoming stock, merchandising, and other odd jobs Full time: Opening & closing store, managing part time employees, returns & stock transfers in absence of manager and assistant manager Assistant Manager: Same along with shrinkage checks and payroll duties Store manager: All store tasks including paperwork related to inventory control & HR duties (hiring, scheduling, training, termination, performance evaluations)

Goals & Compensation

Part time:

$8.15 per hour plus 4% commission which translated to sale of just over $200 per hour Achieving this depended equally on store location, day and time of shift as it did on sales ability While sales goals were assigned by store manager, standard was to sell $100 per hour

Full time & Assistant Manager:

Hourly rate of $9 - $12 with commission of 2% of all sales adding $60 -$200 a week Sales goals similar to part time employees of $100 per hour

Store Manager:

Fixed salary; negotiable and highly dependant on seniority long with store size & sales volume $650 - $1150 per week Sometimes they took on additional duties to supplement their pay Sales goals were $80 - $100 per hour as they had number of non sales duties.

Goals & Compensation

Additional goals apart from sales goals including performance goals for low price point , high price point accessories and multiples 4 hour shift had goal of 2 low price point accessories, 1 high price point accessory & 60% multiples Stores were judged on ability to hit targets and were issued verbal & written warnings if goals not met. Cascading effect of negative reinforcement encouraged managers to push employees to hit

Typical Employees

Usually reflected stores target market with young people meeting minimal hiring standards and were willing to work for long hours for low wages. Job Requirements focused on soft skills more than hard skills Hiring process was informal and subjective Full time employees, assistant and store managers were promoted from within or similar stores Tended to have little post-secondary education as they worked up the ranks

The Kelowna Store

Low leasing costs, host for huge sporting and cultural events, 2nd largest city in British Columbia, University establishment

Store had average to above average returns and requires less maintenance. Success attributed to Samantha Abbott (1995 2005) whose efficiency led to very rare visits from regional sales manager and regional manager

Samantha Abbott [1995 2005]

Sara Teegs [July Oct 2006]

Mark Asselhoff

Nathan Edwards

Grace Williams [Jan July 2006]

Wayne Price [ Oct 2006 May 2007]

Jennifer Sands

The problem

She resigned due to being under appreciated in 2005 Current staff: Nathan Edwards + 6 part time employees ( Exhibit 1) Difficulty in hiring part time employees (Exhibit 2); Low pay combined with non-existent commission Sales, accessories, multiples plummetted

Problem Contd..

No positive or negative reinforcement Man power shortage Manager lacks real experience

Untrained part-time staff

Protocol not being followed with regards to upselling

Strategic HRM in Retail

Commitment, Competence, Cost effectiveness & Congruence are to be considered to enhance performance of organization and ensure well being of employees Various aspects of HR in Retail
R&S Criteria Screening Promotions Selection Training Induction Skill enhancement Communication Company policies Motivation Culture Recognition Rewards Growth Evaluation Goal Setting Attitude alignment

Identify Roles Merchandising Operations Tech Support

Immediate Steps
Increase the number of permanent employees; provide more benefits Drop Nathan to Assistant Manager & recruit a store manager with better incentives Provide training to part time employees Send more support to the Kelowna branch

Long Term Solution

Customize sales target to store location Improve communication with store with upper management Recognize employees progress, performance frequently

Associate non monetary benefits with customer service and performance

Incentivize part time employees with opportunity of full time employment Motivation through creating a culture Recognize & share best practices

Thank You

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