Careers in Retailing

Overview

A person looking for a career in retailing has two broad possibilities: owning a business or work­ing for a retailer. One alternative does not preclude the other. Many people open their own retail businesses after getting experience as employees. A person can also choose franchising, which has elements of both entrepreneurship and managerial assistance (as discussed in Chapter 4).

Regardless of the specific retail career path chosen, recent college graduates often gain per­sonnel and profit-and-loss responsibilities faster in retailing than in any other major sector of business. After an initial training program, an entry-level manager supervises personnel, works on in-store displays, interacts with customers, and reviews sales and other data on a regular basis. An assistant buyer helps in planning merchandise assortments, interacting with suppliers, and outlining the promotion effort. Our blog (www.bermanevansretail.com) has loads of career-related materials: We

• Have a table describing dozens of positions in retailing.
• Present career paths for several leading retailers across a variety of formats.
• Offer advice on resume writing (with a sample resume), interviewing, and internships.
• Highlight retailing-related information from the Occupational Outlook Handbook.
• Present links to a number of popular career sites.

THE BRIGHT FUTURE OF A CAREER IN RETAILING

The U.S. Bureau of Labor Statistics predicts that employment in retailing will grow by about 7 percent between 2014 and 2024.¹ In addition to new positions being available, there will be opportunities to advance in a retail career via designated career paths. For example, many employees who started as a retail salesperson have progressed to department level sales managers.

According to the Bureau of Labor Statistics, the largest retail employers are general mer­chandise stores (including warehouse clubs, supercenters, dollar stores, and variety stores), and food and beverage stores. The next largest employers include motor vehicle and parts dealers, and clothing and clothing accessory stores.

The National Retail Federation offers a lot of valuable advice and resources at its “Retail Careers Center” Web site (www.nrf.com/career-center).

OWNING A BUSINESS

Owning a retail business is popular, and many opportunities exist. Most retail outlets are sole proprietorships; and many of today’s giants began as independents, including Walmart, Home Depot, J.C. Penney, McDonald’s, Sears, Cheesecake Factory, and Mrs. Fields.

Too often, people overlook the possibility of owning a retail business. Initial investments can be quite modest (several thousand dollars). Direct marketing (both mail order and online retailing), direct selling, and service retailing often require relatively low initial investments—as do various franchises. Financing may also be available from banks, suppliers, store-fixture firms. and equip­ment companies. Furthermore, owning a business gives the operator opportunity to be flexible in choosing among retail formats, to serve unique niches, to be independent of stockholders and other publics. In many cases, there are few or no licensing standards.

OPPORTUNITIES AS A RETAIL EMPLOYEE

As we’ve noted before, in the United States, tens of millions of people are employed by traditional retailers, as well as others who are employed by firms such as banks, insurance companies, and airlines. More people work in retailing than in any other industry.

Career opportunities are plentiful because of the number of new retail businesses that open and the labor intensity of retailing. Thousands of new outlets open each year in the United States, and certain segments of retailing are growing at particularly rapid rates. Many large retailers also plan to open many new stores in foreign markets. The increased employment from new store open­ings and the sales growth of retail formats (such as supercenters) also mean there are significant opportunities for personal advancement for talented retail personnel. Every time a chain opens a new outlet, there is a need for a store manager and other management-level people.

Selected retailing positions, career paths, and compensation ranges are described next.

1. Types of Positions in Retailing

Employment is not confined to buying and merchandising. Retail career opportunities also encom­pass advertising, public relations, credit analysis, marketing research, warehouse management, information technology, human resource management, accounting, and real-estate. Look at our Web site for a list and description of a wide range of retailing positions. Some highly specialized jobs may be available only in large retail firms.

The type of position a person seeks should be matched with the type of retailer likely to have such a position. Chain stores and franchises typically have real-estate divisions. Department stores and chain stores usually have large human resource departments. Mail-order firms often have advertising production departments. Franchises and fast-growing retailers commonly have large real-estate departments. And online firms have Web site design, Web analytics, and large order fulfillment departments. If one is interested in travel, a buying position or a job with a retailer having geographically dispersed operations should be sought.

2. Career Paths and Compensation in Retailing

For college graduates, executive training programs at larger retailers offer good learning experi­ences and advancement potential. These firms often offer careers in both merchandising and nonmerchandising areas.

Here is how a new college graduate could progress in a career path at a typical department store or specialty store chain: He or she usually begins with a training program (lasting from three months to a year or more) on how to run a merchandise department. That program often involves on-the-job and classroom experiences. On-the-job training includes working with records, reorder­ing stock, planning displays, and supervising salespeople. Classroom activities include learning how to evaluate vendors, analyze computer reports, forecast fashion trends, and administer store policy.

After initial training, the person becomes an entry-level operations manager (often called a sales manager, assistant department manager, or department manager—depending on the firm) or an assistant buyer. An entry-level manager or assistant buyer works under the direction of a seasoned department (group) manager or buyer and analyzes sales, assists in purchasing goods, handles reorders, and helps with displays. The new manager supervises personnel and learns store operations; the assistant buyer is more involved in purchases than operations. Depending on the retailer, either person may follow the same type of career path, or the entry-level operations man­ager may progress up the store management ladder and the assistant buyer up the buying ladder.

During this time, responsibilities and duties depend on the department (group) manager’s or buyer’s willingness to delegate and teach. When a manager or buyer has authority to make deci­sions, the entry-level manager or assistant buyer will usually have more responsibility. If a firm has centralized management, a manager (buyer) is more limited in his or her responsibilities, as is the entry-level manager or assistant buyer. Further, an assistant buyer will gain more experi­ence if he or she is in a firm near a wholesale market center and can make trips to the market to buy merchandise.

The next step in a department store or specialty store chain’s career path is promotion to department (group) manager or buyer. This position is entrepreneurial—running a business. The manager or buyer selects merchandise, develops a promotional campaign, decides which items to reorder, and oversees personnel and record keeping. For some retailers, manager and buyer are synonymous. For others, the distinction is as just explained for entry-level positions. Generally, a person is considered for promotion to manager or buyer after two years.

Large department store and specialty store chains have additional levels of personnel to plan, supervise, and assess merchandise departments. On the store management side, there can be group managers, store managers, branch vice-presidents, and others. On the buying side, there can be divisional managers, merchandising vice-presidents, and others.

At many firms, advancement is indicated by specific career paths. This lets employees moni­tor their performance, know the next career step, and progress in a clear manner. Selected retail career paths are shown in the careers section of our Web site.

As an illustration of the diversity in retail career paths, Table 1 lists 10 retail positions with unique responsibilities. Table 2 lists compensation ranges for personnel in various retailing positions.

GETTING YOUR FIRST POSITION AS A RETAIL PROFESSIONAL

The key steps in getting your first professional position in retailing are the search for opportuni­ties, interview preparation, and the evaluation of options. You must devote sufficient time to these steps so your job hunt progresses as well as possible.

3. Searching for Career Opportunities in Retailing

Various sources should be consulted. These include your school placement office, company directories and Web sites (such as www.linkedin.com), ads in your local newspapers, Web net­working and job sites, and networking (with professors, friends, neighbors, and family members). Here are some hints to consider:

• Incorporate internships into your college experience. This lets you try out different types of positions, different types of retailers, different goods/service categories, and different size firms. Internship sponsors also can directly see your job-related skills and motivation.
• Do not “place all your eggs in one basket.” Do not rely too much on friends and relatives. They may be able to get you an interview but not a guaranteed job offer.
• Be serious and systematic in your career search. Plan in advance and do not wait until the recruiting season starts at your school to generate a list of retail employers.
• Use directories with lists of retailers and current job openings. Online listings include Career- Builder.com Retail Jobs (http://careerbuilder.com/jobs-retail) com (www .allretailjobs.com), Work in Retail.com (www.workinretail.com), and I Hire Retail (www .ihireretail.com). Also visit our blog (www.bermanevansretail.com).
• Rely on the “law of large numbers.” In sending out resumes, you may have to contact at least 10 to 20 retailers to get just two to four interviews.
• Make sure your resume and cover letter highlight your best qualities. These may include school honors, officer status in an organization, work experience, computer skills, and the proportion of college tuition you paid. Also aim your resume and cover letter to each specific potential employer. Our Web site shows a sample resume for an entry-level position in retailing.
• Show your resume to at least one professor, your college’s placement office manager, or other advisor. Be receptive to their constructive comments. Remember, their goal is to help you get the best possible first job.
• Be professional at social media sites. Companies may look you up at Facebook, LinkedIn, and other social media sites. Be careful what you have posted—including the pictures you display.

4. Preparing for the Interview

The initial and subsequent interviews for a position, which may last for 20 to 30 minutes or longer, play a large part in determining if you get a job offer. Thus, you should prepare for all interviews:

• Adequately research each firm. Be aware of its goods/service category, current size, overall retail strategy, competitive developments, and so on.
• Anticipate questions and plan general responses. “Tell me about yourself.” “Why are you interested in a retailing career?” “Why do you want a job with us?” “What are your major strengths?” “Your major weaknesses?” “What do you want to be doing five years from now?” “What would your prior boss say about you?” In preparation, role-play your answers to these questions with someone.
• Treat every interview as if it is the most important one. Otherwise, you may not be properly prepared if the position turns out to be more desirable than you originally thought. And remember that you represent both your college and yourself at all interviews.
• Be prepared to raise your own questions when asked to do so in the interview. They should relate to career paths, training, and opportunities for advancement.
• Dress appropriately and be well groomed.
• Verify the date and place of the interview. Be prompt.
• Have a pen and pad (or PDA/smartphone) to record information after an interview is over.
• Write a note to the interviewer within a week to thank him or her for spending time with you and to express a continuing interest in the company.

5. Evaluating Retail Career Opportunities

Job seekers often place too much emphasis on initial salary or the firm’s image in assessing career opportunities. Many other factors should be considered, as well:

• What activities do you like?
• Would you regard the position as fulfilling?
• What are your personal strengths and weaknesses?
• What are your current and long-term goals?
• Do you want to work for an independent, a chain, or a franchise operation?
• Does the opportunity offer an acceptable and clear career path?
• Does the opportunity include a formal training program?
• Will the opportunity enable you to be rewarded for good performance?
• Will you have to relocate?
• Will each promotion in the company result in greater authority and responsibility?
• Is the compensation level fair relative to other offers?
• Can a dedicated and hard-working employee move up the career path much faster than an average one?
• If owning a retail firm is a long-term goal, which opportunity is the best preparation?

UPWARD MOBILITY IN YOUR CAREER: THE CHIEFS OF RETAILING

While it’s become more common to hear about new “chief’ roles, determining the specifics of what each is responsible for can be tricky. When an employer, a headhunter, or a colleague learns someone is a CFO – chief financial officer – a reasonably clear picture of that person’s role emerges. If the title is chief experience officer, however, the definition is far less clear.

Susan Hart, co-leader of Spencer Stuart’s global executive search and leadership consulting practice, admits that finding the right candidate for these jobs often requires a deep dive into the employers’ exact qualifications, but it’s not all that different from other jobs the company is asked to fill. “Every company is somewhat unique, so it’s up to us to probe how they operate, how they expect this candidate to interface with others in the company, what’s the structure of the job,” she says. “We start with a diagnostic, then work to zero in on the right person.”

She says chief digital officers are currently in high demand, and it is a position that could be a breeding ground for future retail CEOs. “The 21st-century retail CEO needs to be fluent in all things digital, E-commerce, and marketing,” she says. “They need to know how to use data to gain customer insight. Oftentimes, much of that is what the chief digital officer is working on today.” Maryam Morse, national retail practice leader for Hay Group, believes some retailers are working through hiccups as they carve out a course for the newly named chiefs to follow. “Firms are making the leap by designating a chief digital officer, but most say they’re paving the path as they go.” In the past, retail “celebrated and rewarded individual accountability. Now, leaders are asked to think differently (to apply companywide thinking to every task) to keep the customer at the center.”

That was exactly the case for Kathy Doyle Thomas of Half Price Books. Thomas logged several years as vice-president of marketing and development before being named chief strategy officer. “Decisions to elevate someone to ‘chief’ are grounded in the importance of a certain business objective — whether that be digital or innovation or whatever,” she says. “There are a lot of VPs in retail, and as that organizational structure progressed the need to designate a chief became more apparent.”

Thomas views “chief” titles as indicative of executives who are being called upon for more big-picture thinking. “As chief strategy officer, I’m charged with exploring any new opportuni­ties for the company—ranging from new revenue-generating opportunities to exploring outside partnerships,” she says. “I’m being asked to come up with new ideas that will increase sales rather than focusing my attention on the nuts and bolts of one portion of the company.”

Will those functions and responsibilities be understood and valued outside Half Price Books, were she to move on? “That’s hard to say,” Thomas admits. “I would imagine the responsibilities of the chief strategy officer would be different from one company to the next. Still, in this role, my job is to encourage and to help make things happen, but I don’t necessarily get credit for that. For example, I can push for certain divisions to carry different merchandise, but if and when they do, that’s something a buyer would be rewarded for. So much of this comes down to recognizing how different retail is now from what it looked like even just a few years ago.”

Many experts feel the inclination to name more retail chiefs is a positive trend, but they’re guarded about the staying power of the titles. “I see these chief titles as catalytic roles at a point in time,” Eamonn Kelly, a director with Deloitte Consulting, says. “They’re trying to make a con­nection between advances in digital and customer and technology. If a firm gets that right and embraces customer-centric thinking—that’s a success, and these roles wouldn’t be needed five years later. What really matters is the ability to combine a deep understanding of the customer with an understanding of how digital technology will drive new sources of customer value. Then everyone wins—the customer, the retailer and the industry.”

Source: Barry Berman, Joel R Evans, Patrali Chatterjee (2017), Retail Management: A Strategic Approach, Pearson; 13th edition.