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- Now is a great time to look into retailing
- Laura Liebeck writes:
"If there ever was a perfect time to enter the retailing field, now is
the time. Retailing is a dynamic, fast-paced environment filled withexciting
new opportunities. There are so many options, particularly when it comes to
store format." (see Careers in Retailing).
- E-tailing Opportunities Huge
- We are currently in the midst of an historic shift towards electronic
commerce. With the meteoric success of companies like Amazon, CDNow, eToys and
Dell in retailing over the web, we are are seeing a migration of sales outside
of traditional stores to cyberspace. This has created huge demand for
cyber-retailers and should be cause for a little caution for those entering
traditional channels. Common sense suggests that not all goods can be
successfully sold online. Moreover, it will take a long time for e-commerce to
infiltrate. This said, IDC forecasts that online retailing will exceed $425
billion by the year 2002. [For more see "Don't be an Ecommerce
Victim," ZDNet 11/98. Also see Ernst & Young's Internet Shopping
Report]
- High and Growing Sales Volumes
- Sales volume from retailing exceeds $2 trillion dollars and sales have
increased in each of the past 22 years. As a result, retailing remains a good
career field with high growth and job-aplenty.
- Category Killer Reigns Supreme
- The 1990s have been the decade of the retail category killer. Stores like
Wal-Mart, Toys R Us, Home Depot, Baby Superstore and Linens and Things have
sought to be so much better than their competition that they both dominate and
redefine their markets by offering shoppers with a great variety of
merchandise in a product category under one roof with great, knowledgeable
salespeople. This trend of new category killers is likely to continue into the
future. Category killers usually dominate either on price, selection, store
appearance or, better yet, all three.
- Retail is Globalizing
- One of the big trends lately has been globalization of retailing. Players like
Wal-Mart, Sainsbury, the Gap and Metro AG have all been expanding across
borders. For more, see the Ernst & Young Global Retailing Report and the
PriceWaterhouseCoopers Trends in Global Retailing Report.
- Discount Retail Gaining Share
- Traditionally U.S. retailers have been segmented into discount general
merchandisers, department stores and specialty retailers. One of the most
remarkable trends in recent years has been the increasing market share of the
discount retailers such as Target, Wal-Mart and Kmart. Due to the introduction
of higher end goods in the discounters (e.g. Martha Stewart housewares at
Kmart), it's become chic to shop there. For example, over the last ten years
the market share of discounters has risen from 43% to 63% while department
store sales have dropped from 25% to 15% (as of late 1998).
- Watch Your Employer Carefully
- Pay attention to the track record of the company you go work for. It turns out
that many retailers close, particularly in the highly competitive specialty
area. The big department store chains like Federated, Marshall Field and May
have been around for a long time. And, massive players like Sears, Wal-Mart
and K-Mart are likely to be around for a very long time. Pick, choose and be
smart.
- Learn the Ropes
- The operative words in retail are things like sales per square foot, shelf
space, cross-promotions etc. There is a lingo and a set of skills you will
have to pick up mainly through experience. Don't be afraid to start off with
an entry-level job that will let you really learn the ropes.
- Discounters Branching Out
- Discount retailers are becoming increasingly broad in their product offerings.
K-Mart, for example, has been looking to partner with a grocery store chain so
it can offer a full range of products to shoppers. One-stop is a dominant idea
of our time.
- Be Prepared to Move
- In retailing you have to be prepared to move. Candidates who are unwilling
to relocate will have a harder time moving up the organization because you
will have to wait until the person above you moves on so you can move up.
Usually, a retail chain will defray your relocation expenses.
- Micro-Marketing Picking Up
- An important trend which is picking up steam in retailing is micromarketing.
Stores like Target actually stock each of their stores differently according
to seasonal and demographic differences. Using computerized reports on sales
per store, it is possible to go in and expand one set of offerings and shrink
another on a week to week basis. This has proven to be a major source of
competitive advantage which is sure to be duplicated.
- Opportunities Plentiful
- According to the U.S. Department of Labor, more than 19 million Americans are
employed in the retailing industry in more than 2 million retail
establishments. This is a big business with plentiful opportunities.
- Change is Constant
- As good as career opportunities in retail are, you have to be ready for
change. The industry is seeing heavy consolidation as Wal-Mart becomes
increasingly dominant. Things have been changing, are changing and will
continue to change. Be ready for it.
- Ever Think of Starting Your Own Store?
- One important retailing career opportunity is as store owner. Many people go
into retailing to obtain experience that will be beneficial later in starting
their own business. Some of the most interesting stories in retail involve
entrepreneurs who took big ideas national. The Gap was started by a hippyish
lawyer in the 1960s who was unhappy with the availability of blue jeans at the
time. At about the same time, the Limited began to take off under the guidance
of brilliant retailing entrepreneur, Leslie Wexner. There is opportunity in
retailing. Big time.
- Many Channels of Retail Available
- There are also many forms of direct retailing (non-store) which can offer
career possibilities such as mail order, home shopping network, vending
machines, computer shopping, and catalogs. A shake-out could be coming in
these venues.
- Think Technology
- Think about mastering technology in retail. Stores such as JC Penney have made
dramatically increased their efficiency by using EDI (Electronic Data
Interchange) and QR (Quick Response). These technologies allow retailers and
suppliers to observe sales instantly and react by placing orders, diverting
shipments and making payments on merchandise. There's also great interest in
improving point of sale (POS) equipment.