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With Retail Store Openings Down And Closings Up, Employees Appreciate Leadership

Art Patch
Art Patch

Last updated on June 8th, 2018 at 10:03 am

by Art Patch/a retired retail executive & regular columnist for The Shelby Report

There is so much happening in retail businesses, it’s no wonder employees are concerned about their future. Most distressing is a recent industry study by Jones Lang LaSalle showing new store openings down 28.8 percent in 2017.

Most of us follow the sad stories of Sears and Toys “R” Us. The constant change in the industry—as reflected in the merger of Albertsons and Rite Aid, Kroger’s sale of its convenience store business and Amazon’s “Just Walk Out” 1,800-s.f. format selling key items with minimal clerk support—can cause discomfort.

Another issue that will require change is the new demographic segment referred to as the “Z” generation. These shoppers, born after 1997, are now 27 percent of the population. This group tells us they would rather shop at a store like Sprouts Farmers Market because of their selection of fresh, natural and organic products at attractive prices.

In the late 1980s, Price Pritchett and Ron Pound wrote what they called a handbook, titled “Business as Unusual.” Although dated, the book addressed key issues of leadership that helped businesses get through the period of mergers and takeovers.

They focused on three challenges:

  1. How do you keep your good people?
  2. How do you keep morale from dropping?
  3. How do you get results?

From these questions, they made a list of 27 things leaders needed to pay close attention to during hard times. Listed here are five.

  1. Establish clear priorities. Plan and organize.
  2. Motivate to the hilt. Serve as the cheerleader. Remember, different things motivate different people.
  3. Beef up communication. Stay in touch with your people.
  4. Protect quality and customer service. Reminder: it is five times more expensive to get a new customer than to keep one.
  5. Re-recruit your good employees. Your best talent will be most attractive to your competition.

Jamie Dimon, chairman and CEO of JPMorgan Chase, was quoted as saying, “Leadership is an honor, a privilege and deep obligation.”

Now would be a good time to make leadership a business priority.

Chase those sales; they won’t chase you!

After a 40-year career that included executive-level positions with Safeway, Lucky Stores, Appletree Markets and Save Mart/Food Maxx, Art Patch retired from the retail grocery business in 2007. He is a graduate of San Jose State College and the Cornell Food Executive Program. Patch is on the ExecuForce Team of Encore Associates and is a ­counselor for SCORE, helping new and emerging ­businesses develop business and ­marketing plans. He ­welcomes your feedback. Email him at [email protected].


Keep reading:

Art’s Angle: Keeping The Business Simple Bodes Well For Growth

Art Patch: Food Retailers, Tighten Your Belts—The Fun Has Just Begun

Will Someone Win The Price Vs. Service Battle, Or Is There Room For Both?

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