Holt Renfrew‘s first free-standing menswear store opens this fall in the heart of Toronto’s ‘Mink Mile’. Measuring 14,000 square feet, the 100 Bloor Street West location will feature distinctive branding, as well as luxury amenities. Holt Renfrew is upping its game to compete with neighbouring Harry Rosen, as well as new-to-market entrants Nordstrom and Saks Fifth Avenue, both opening in Toronto in 2016.
From what we can see from the new store’s hoarding, Holt Renfrew’s ‘HR’ logo is contained within a square. This is different from the traditional logo, which comprises of a circle surrounding the HR logo. Holt Renfrew representatives won’t reveal if the company’s signature colour, magenta, will be incorporated in any way in the new men’s store branding. A Twitter account for the new store has been created, currently with 83 followers.
Holt Renfrew’s new men’s store will utilize some of the innovations introduced in the new men’s department at Holt Renfrew’s Yorkdale Shopping Centre location, including a men’s lounge. Appropriately called ‘The Lounge’, the space features a black BMW motorcycle and foosball table. Free services are provided, including straight-razor shaves on vintage barbershop chairs, and shoe shines.
Interestingly, menswear will continue to be carried at Holt Renfrew’s flagship, a block east at 50 Bloor Street West. The 180,000 square foot store will be expanded and renovated over the next two years, with construction beginning this fall.
Holt Renfrew president, Mark Derbyshire, recently told Women’s Wear Daily: “The stand-alone men’s shop will be a classic sartorial store and supports our growth plans to further enhance our luxury men’s wear and Holt Renfrew’s presence on Bloor Street — the destination for luxury.”
The two-level, 14,000 square foot store replaces Roots Canada which, until recently, occupied the prominent corner location. We’re told that Holt Renfrew signed a long-term lease for the space, paying a premium for what is arguably ground zero for Canadian luxury retailing.
Competitor Harry Rosen is located directly across the street from Holt’s new men’s store. Being substantially larger, Harry Rosen occupies a multi-level, 55,000 square foot space. CEO Larry Rosen says he isn’t concerned about his new neighbour, as Harry Rosen’s exceptional product and customer service keeps his customers loyal.
Nordstrom and Saks Fifth Avenue, both opening at the Toronto Eaton Centre in 2016, will provide competition to Holt Renfrew men’s store. Both are geographically removed from Holt’s, however, being about two kilometres south. As competition increases for Canadian luxury shopping dollars, it will be interesting to see if Toronto’s affluent will venture out to Saks and Nordstrom, being physically removed from the city’s premier luxury shopping strip.
Nordstrom is hiring management and staff for its new Ottawa store, the second to open in Canada. In total, about 30 managers and over 350 additional staff will be hired for the Rideau Centre location, scheduled to open March 6th, 2015. Management jobs were posted on Nordstrom’s website yesterday, and hiring will begin in late August. Hiring for associates will follow thereafter.
Management positions are available in a variety of store departments, including womenswear, menswear, footwear, children’s wear, accessories/jewelry and cosmetics. Support positions are also available in alterations, housekeeping and shipping/logistics as well as positions in the store’s new restaurant and coffee bar (called eBar).
A variety of departments will be present in Ottawa’s Nordstrom, from the affordable to the luxurious. For example, the Ottawa store will hoast the company’s priciest womenswear department, called Collectors, featuring the world’s top designers and prices into the thousands. Three footwear departments will carry shoes from the modestly priced to the extravagant, and a variety of pricepoints will also be found in its menswear, jewelry and women’s handbags departments.
Nordstrom’s 157,000 sq ft Ridea Centre store will occupy levels 2 and 3 of the mall’s former Sears store. Image adapted from Nordstrom rendering.
As an extra perk, Nordstrom managers will receive a 33% discount on merchandise, on top of their usual salary and benefits. Nordstrom’s supplemental benefits package includes vision, dental and medical options, as well as an RRSP matching program.
“We’re looking to hire service-oriented Ottawans who love fashion and working with customers, and have leadership and or management experience,” said Nordstrom’s new Ottawa store manager, John Banks. “Nordstrom is a great place to build a career in retail. Canada is a new frontier for us and there will be opportunities to grow with the company as we expand and open stores across Canada.”
In the United States, Nordstrom usually picks ‘proven leaders’ from its stores to become department managers. For its Ottawa store, however, Nordstrom has taken a slightly different approach. Instead of promoting existing staff, Nordstrom is seeking out Canadian talent. For about three months, between October and December, new hires will be temporarily moved to Seattle to be immersed in Nordstrom’s corporate culture. Housing, food and transportation will be provided by Nordstrom. Once trained at the Seattle flagship, department managers may begin recruiting staff for their Ottawa store location.
Rendering of Rideau Centre’s Nordstrom. Photo: Rideau Centre
Rideau Centre’s 157,000 square foot Nordstrom store is currently under construction. Occupying the second and third levels of a former 240,000 square foot Sears store, Ottawa’s Nordstrom will anchor the increasingly upscale Rideau Centre. The mall’s second anchor will be La Maison Simons, which will occupy 105,000 square feet in a northeastern mall expansion. Simons is set to open in August of 2016.
Department managers will begin hiring store staff for Ottawa’s Nordstrom in December of this year. Applicants can create an online profile at: www.careers.nordstrom.com.
Replying to job ads is the age-old method of job searching. The problem with this approach is that you’re competing directly against everyone else who is responding to the same posting. Rather than getting the jump on your competitors, you’ve simply thrown your hat in the ring.
I’m not suggesting you stop doing that. However, if your job search isn’t going well I recommend you go beyond that approach and target employers you’d like to work for. Here is a 5-step guide to targeted job searching in the retail industry:
Step 1 – Identify retailers you’d like to work for
Make a list of all the retail companies in your area that you’d like to work for – companies that you’ve read about and admire, or companies with product categories that you have experience with. Regardless, don’t worry about whether they have any positions open at this point – you’re just figuring out what YOU want.
Step 2 – Research those companies through their websites and social media
Learn as much as you can about each potential company before you approach them – by doing so you will come across as much more confident, professional, organized, and competent. Read their entire website and learn about their history, mission, and philosophy. Find out how many stores they have and where. Check out their LinkedIn company page and get a sense of how active they are on that network. Follow them on Twitter and Facebook as well.
Step 3 – Determine where you would fit in the company
Realistically assess what position you’d be qualified for with each company, and that may be different for each one. For example, say you are a district manager with Old Navy, you oversee 9 stores and a combined $85M in sales, and you’d like to work for H&M or Target. It’s possible that you could step right into a DM position with H&M if the sales volumes were similar, but it’s unlikely that you would be considered for a district leadership position with Target, since the volumes are much higher. In that case, you may want to pursue a store leader position.
Besides sales volume, merchandise category experience is important to recruiters as well. A store manager with Safeway might not be qualified for a store manager position with Best Buy if that person doesn’t have other product experience that is more closely related. (Please note, these are simply examples; I am not speaking on behalf of any of these companies.)
Step 4 – Identify contacts within the company
LinkedIn is a great tool for this. When you click on a company’s page, you will see a section called “How You’re Connected” at the top right. This will show you any first-degree or second-degree connections you already have in that company. Look over the list and try to find someone who would be at the level above the position you’re seeking. For example, if you want a store manager position, try to find the district manager in your area.
If that person is a first-degree connection, you can send them an email. If they are a second-degree connection, you can send them a connection request if you like but I suggest asking for an introduction first. If you hover over the arrow to the right of the “Connect” button, you will see an option for “Get Introduced” – this allows you to ask a mutual first-degree connection to introduce you.
When you ask for an introduction, tell your first-degree connection why you would like to be introduced. For example:
Dear Kim,
I am requesting an introduction to a first-degree connection of yours, Stacy Horton with ABC Company. I have admired this company for some time and I am confident my 3 years’ experience as a store manager for DEF Company would make me a strong candidate for future management opportunities with ABC. If you would consider forwarding this introduction, I would be most grateful. Please let me know if you have any questions or concerns.
Sincerely, Michael Howard
It’s important to note that what you write to your first-degree connection may be forwarded to the second-degree connection, so don’t include anything that you wouldn’t want that person to see.
Step 5 – Initiate contact with the new connection and develop a relationship
One key to networking is to recognize that a new relationship may not bear fruit right away, but it’s still worthwhile. Don’t approach the person with the standard “Do you have any store manager openings?” because you may be disappointed with the answer, you won’t impress them, and in all likelihood the relationship won’t grow from there.
What you want to do is get them interested in you. If they have a position available right now, great. If not, you have a better chance of being considered when the time comes. Here’s an example:
Dear Stacy,
Thanks for connecting with me.
I have been with DEF Company as a store manager for the last 3 years, and in that time I have led my store from $2.5M to $4.5M in sales. I have been very successful in this location, ranking 1st in my district (12 stores) and top 3 in my region (68 stores) in sales volume and key performance metrics for the last 18 months. I now feel that I have accomplished all I can with DEF and am open to other opportunities in retail management.
I am a great admirer of ABC Company and have watched their rapid growth throughout the country in the last few years. I am confident the skills and experience I gained at DEF would make me a top candidate for future store manager vacancies with your company.
Do you have time for a quick phone conversation? I can call you at your convenience, or I can be reached anytime at 555-555-5555. In the meantime, feel free to review my LinkedIn profile for more information.
Thanks again for joining my network Stacy. I look forward to discussing this further with you.
Sincerely,
Michael Howard Email Address
Recruiters appreciate candidates who know exactly what they want and go after it. Targeting specific companies you’d like to work for will portray you as much more confident, assertive, and professional than the “I’ll take anything – what do you have available?” approach that most job-seekers use.
Michael Howard is a professional resume writer working exclusively with store managers, district managers, regional managers, and other retail leaders from across North America. Visit retailresumes.ca for details or follow him on Twitter.
Spanish-based Inditex plans to further expand in Canada, intending to open new Zara and Massimo Dutti stores. It’s a bold move for the company, which barely advertises and currently experiences mediocre sales for its Massimo Dutti brand. Zara does gangbusters sales in Canada, however, warranting further expansion that will see new and expanded stores, as well as new Zara Home locations.
Zara currently operates 26 Canadian stores, as well as two Zara Home locations. Zara intends to substantially expand its Canadian operations, according to sources, including its Zara Home concept. Zara Home’s first Canadian store opened in August of 2013 at Toronto’s Yorkdale Shopping Centre, with a second location opening shortly thereafter at Montreal’s Carrefour Laval. An Ottawa Zara Home location is confirmed for 2016, within a new two-level Zara flagship at Rideau Centre. We’re awaiting further details of Zara’s Canadian store expansion, and we’ll update this article when we learn more.
Interestingly, Inditex plans to open more Massimo Dutti stores across Canada, despite mediocre sales in its first three locations. Dutti’s first Canadian store opened in August of 2012, measuring 4,800 square feet at the Toronto Eaton Centre. It subsequently opened two more Toronto stores: last August at Yorkdale Shopping Centre, and earlier this year at First Canadian Place. The company is now targeting Montreal, Ottawa, Vancouver, and possibly other Canadian cities for new stores, according to a source familiar with the brand. Its first Montreal location just opened at Centre Rockland, and a Carrefour Laval store will follow next week. Its first Ottawa location is already confirmed, being a 5,000 square feet, scheduled to open in August of 2016 at Rideau Centre.
MASSIMO DUTTI. PHOTO: WWW.MEDCOSMOS.GR
ZARA HOME (PHOTO: WWW.QVEST.DE)
Inditex’s brands will soon face increased competition in Canada, as Japanese fast-fashion brand Uniqlo intends to expand, and de-throne Inditex as the world’s largest fashion retailer. Uniqlo is currently working with a broker to secure Canadian space, and a source informs us that Uniqlo management was in Vancouver last week for a number of meetings. Uniqlo intends to open multiple stores in cities across Canada, and the company’s CEO thinks that sales could surpass those of Zara. Last year, Inditex did sales of 16.7 billion Euros.
Canadian retailers could be hurt the most by these international expansions, as we discussed in an interview with CBC yesterday. Local retailers, traditionally complacent and lacking competition, will need to innovate if they hope to survive the increasingly global nature of Canadian retailing.
Ed Strapagiel is a consultant specializing in applied marketing, business development and strategic planning. [Ed Strapagiel’s Website]
Statistics Canada’s latest numbers show a 4.6% increase in total retail sales in May of 2014, over the same month a year ago, on a not seasonally adjusted basis. This is the highest such monthly gain so far this year.
The 3 month year-over-year growth trend (orange line in the chart above) has now risen slightly above the 12 month trend (green line). This implies a fairly steady pace going forward, perhaps with a little upside.
On the other hand, these results are not evenly spread. Overall, the Automotive & Related sector is most responsible for pushing up the total retail gain. In May 2014 on a year-over-year basis, Automotive & Related retail sales increased 6.9%, over double that for Food & Drug with a 3.2% increase, or Store Merchandise with a 3.4% increase.
Food & Drug Stores
Food & Drug stores’ sales gained 3.2% for the 3 months ending May 2014. While not sizzling, this 3 month trend is at the highest levels since 2011 and is tracking above the 12 month trend currently at 2.1%. But there are significant disparities among the store types in this sector.
Sales at supermarkets & other grocery stores were up just 0.7% for the 3 months ending May. This is less than inflation in the food business.
In contrast, specialty food stores and health & personal stores are enjoying high sales growth rates, in the 8% to 9% range, and well above the overall retail average.
Store Merchandise
Retail sales were up 3.4% in May for Store Merchandise, the best single month gain in 2014 so far. After steadily softening since August of last year, the 3 month trend appears to be modestly recovering (orange line in the above chart), although it is still behind the other major retail sectors.
The other general merchandise stores group (mostly large combo retailers) continues to outpace all other merchants in this sector. Year-over-year sales were up 7.1% for the 3 months ending May, and up 8.0% for 2014 year-to date.
Fortunes vary for other store types, mostly unfavourably: – Clothing stores gained 4.0% in 2013 but are up only 1.5% year-to-date in 2014; – Shoe stores gained 6.2% in May alone but are still up only 1.2% year-to-date; – Furniture stores gained 4.4% in May but are still down 0.8% year-to-date; – Electronics and appliance stores lost more ground in May and are down 0.9% year-to-date; – Building material and garden equipment/supplies retailers gained a little in May but are down 0.4% year-to-date.
Automotive & Related
Sales gains in the Automotive & Related sector continue to be well above the overall Canadian retail average. Year-to-date sales were up 7.4% in May, and the trend lines indicate this high level of performance should remain steady going forward.
The only weak spot in this sector is the small other motor vehicle dealers group (e.g., motorcycles and recreational vehicles). Sales were down 6.3% in May and are off 2.6% year-to-date.
Gasoline station retail sales continue to climb and were up 10.6% in May versus a year ago, the single highest increase of any store type in the month. For the 12 months ending May, sales were a record $64 billion, which is over double that of clothing and clothing accessories stores.
Home Outfitters, Canada’s largest kitchen, bed and bath superstore, will be merged into Hudson’s Bay Company‘s (HBC) Department Store Group. Several Home Outfitters locations may close as a result, while others could be extensively renovated. Hudson’s Bay confirms that two Home Outfitters locations will close, as the company increasingly concentrates on its e-commerce operations.
First page of the memo from HBC’s Office of the Chairman.
Founded by HBC in 1999, Home Outfitters currently has 69 Canadian store locations, selling housewares, small appliances, bath accessories, bedding, furniture and home decor. Stores average about 34,000 square feet each and are mostly located in suburban centres.
Company spokesperson Tiffany Bourré confirms that Home Outfitters at Mississauga’s Square One will close in January of 2015, as well a store at 1425 Sumas way in Abbotsford, BC. “We have committed to rationalizing our real estate portfolio and creating a strong, streamlined store base, along with an expanded digital offering. As a result, we will be closing two Home Outfitters locations in January 2015” said HBC spokesperson Tiffany Bourré. “We are committed to open communication with our Associates through the transition and to treating each individual with respect. Store Associates will be offered transfer opportunities where possible. All Home Outfitters stores will continue to focus on serving our customers,” she said.
Regarding HBC’s merging Home Outfitters with Hudson’s Bay’s Department Store Group: “Joining our Home businesses allows us to strengthen our position in the market and create a truly amazing home destination, both in our Home Outfitters and Hudson’s Bay stores, as well as online,” said Ms. Bourré.
Interestingly, a source informs us that HBC is looking for space to open a Home Outfitters store in Downtown Toronto, despite there already being two large Hudson’s Bay stores within the city’s core.
According to the memo from the Office of the Chairman, Home Outfitters’ current gift registry will also be merged with that of Hudson’s Bay’s, creating “one powerful, integrated registry”. Hudson’s Bay is already home to Canada’s largest gift registry, which will become even bigger as a result of the merger.
HBC believes this change will create efficiencies, especially as the company prepares to move most department store merchandise online. The memo reads: “Joining our two Home businesses allows us to create a truly amazing Home destination, both in our Home Outfitters and Hudson’s Bay stores, as well as online. Further, by combining our marketing and merchandising efforts and organizations, we will drive efficiency and collaboration.”
Upscale menswear retailer Harry Rosen will relocate its Ottawa store to an 18,000 square foot space in November. Rosen’s current Rideau Centre store is less than half that size. The stunning new store will compete with the adjacent Nordstrom, scheduled to open in March of 2015.
Ottawa’s new Harry Rosen will feature outstanding interiors, similar to those in its recently renovated and expanded Yorkdale Shopping Centre location. Interestingly, Rosen’s Ottawa store will include a large shoe shop with its own entrance, adjoined to the main store. Rosen’s will also include several designer shops-in-shop, not unlike other larger Harry Rosen stores. Its Yorkdale store, for example, features shops for Ermenegildo Zegna, Canali, and Giorgio Armani.
When finished, it will be one of Harry Rosen’s largest stores. The largest is the 55,000 square foot Toronto flagship on Bloor Street West. In total, Harry Rosen has 16 Canadian store locations as well as one outlet store in Mississauga. A second outlet store will open this fall at Toronto’s Vaughan Mills.
Harry Rosen is renovating and expanding a number of its stores, completely overhauling its Downtown Vancouver and Montreal locations. Its Montreal store will grow to become the company’s second-largest, rivalling the world’s best men’s stores. Its Vancouver store, the second-highest selling in the chain, will be completely renovated and reconfigured.
Ottawa’s Rideau Centre is undertaking a massive expansion which will eventually include new retail anchored by a 105,000 square foot La Maison Simons store and a 157,000 square foot Nordstrom store. Nordstrom is scheduled to open March 6, 2015, next door to Harry Rosen.
Although Harry Rosen will see increased competition from the likes of Nordstrom and Simons, Rosen’s exceptional selection and service will set it apart. We’ll do a separate article next week discussing the future of Ottawa’s upscale retailing, including discussion on both Harry Rosen and Nordstrom.
Target, by its own admission (see the YouTube video below), has made a mess of its business in Canada. The company has lost about a billion dollars since it began operating up north and, while it has pledged to do better, not everyone is convinced it will. In fact, Credit Suisse has gone so far as to suggest that Target’s new CEO, whomever that turns out to be, should seriously consider getting out of the Canadian market altogether.
In a note to investors, as reported by The Financial Post, Credit Suisse analyst Michael Exstein wrote, “We think it may be more prudent for Target to cut its losses and devote 100 percent of its resources on the U.S. — which comprises over 97 percent of the company’s current sales.”
Target is looking to roughly double the $1.3 billion in revenue it generated in Canada during fiscal 2013 without the $941 million in losses that went with it. A lot of people are counting on the chain to succeed, including the more than 20,000 individuals it employs in Canada.
Discussion Question: What are the biggest challenges currently facing Target in Canada? Do you think Target should bail on the Canadian market?
Comments from the RetailWire BrainTrust:
Dick Seesel, Principal, Retailing In Focus LLC: It’s premature for Target to pull out of Canada just over a year since moving in. The company has too much invested in real estate (which they acquired for a bargain price), infrastructure, organization and corporate pride to throw in the towel this quickly. There are some clear lessons learned from the 2013 results that are correctable, starting with inventory levels and pricing. Target is going to have to be a lot more aggressive on both fronts if it intends to gain market share and cover its investment and costs.
Empty shelves: a common complaint among may Canadian Target shoppers. Photo: www.jodyrobbins.com
The Canada experience is symptomatic of what ailed Target overall: Too much caution, too slow to react, too much faith that the “brand” (versus good execution) would carry the day. With luck, the interim CEO is addressing these cultural issues quickly, even during the search for his permanent replacement.
Camille P. Schuster, Ph.D., President, Global Collaborations, Inc.: Either Target needs to invest the resources to understand Canadian consumers or needs to leave the market. The Canadian market is not an extension of the U.S. market and is not homogeneous. While the U.S. has been described as a melting pot (certainly that term is a debatable description of today’s U.S. market), Canada has been described as a mosaic. The significant implication is that differences among consumers exist, are accepted and celebrated. The resources needed to understand this market will be significant. Invest the resources, learn about how to adapt to different markets, or remain a U.S. domestic company.
Steve Montgomery, President, b2b Solutions, LLC: Target has acknowledged many, if not all, of the mistakes it made during its entry into Canada. Admitting you have a problem is the first step to recovery.
Target replaced many former Zellers store locations throughout Canada. Photo: elaineloring.blogspot.ca
The next steps are not easy but doable. The infrastructure is in place, the stores are staffed, supply line exists, etc. Finally, as Dick pointed out, Target got into the market at a price it will not be able to replicate should it withdraw now and then decide to reenter.
Paula Rosenblum, Managing Partner, RSR Research: I agree with Dick Seesel. It’s way too soon. If Canada was located halfway around the world, I might say “yeah, it’s a distraction,” but I can’t see any reason why whatever is done to remake U.S.-based Target won’t be pretty close to what Canadians want as well.
Strikes me that the problem is clear in both countries; lost differentiation (or in Canada’s case, “never found” differentiation). I don’t see any reason to run away. The company has enough cash to work it through and it’s going to need a new CEO with a new vision anyway.
David Livingston, Principal, DJL Research: First Target took horrible Zellers locations no one else wanted. It would appear the former CEO was overzealous and took available locations rather than build ground-up in new good locations. Zellers had run them into the ground so deep that Target will have to do better than a mediocre effort. Consumers associate those locations with negative experiences.
Oh sure, if Target sticks it out they will get better. Just like Fresh & Easy kept getting better and better until they pulled out. There is no place for Target to go but up, but they are so far down they could double their sales and still be well below market. Target’s best effort just isn’t good enough in Canada. They would need new and better locations, and we know that’s not happening. Even if Target did have good locations, it would take several years to overcome their mistakes. I doubt that short-term minded investors have the patience, and therefore, Target needs to put on the brakes, regroup and go home.
Some Canadians complain that American Target stores are different – and better – than the company’s Canadian locations. Photo: Target.
Bill Davis, Director, MB&G Consulting: Target should stay in Canada for now, but should minimize its losses as it learns about doing business in the Canadian market. I would suggest focusing on getting the business running much more smoothly, 90 percent-plus of their effort, as opposed to any growth initiatives, because it’s clear the cost structure is out of whack right now, with $1.3 billion in revenues and $941 million in losses.
Ed Rosenbaum, CEO, The Customer Service Rainmaker, Rainmaker Solutions: Note to Target: Don’t bail out of Canada. Get the right lead dog to navigate through the Canadian path. It is obvious those in the lead did not understand the Canadian marketplace or customers. It appears you can’t paint the Canadian shopper with an American brush.
Gene Hoffman, President/CEO, Corporate Strategies International: The big current challenge for Target is to face up to the reality that its board and past management took themselves too seriously and Canada too lightly. It has resulted in a quick billion dollar loss in Canada and produced only three percent of Target corporate sales. Now that Target has sobered up, it must decide if additional investments in Canada have the potential to get a healthy return in that land north of Montana.
To the second question, YES. Target doesn’t have the street-level business smarts and infrastructure right now to play in two diverse ball parks.
Gene Detroyer, Professor, Independent: If Target wants to grow, they MUST grow internationally. The U.S. market is mature and total U.S. domestic growth will not exceed 2.2 percent for the foreseeable future.
The Canadian sortie was a disaster for Target, but it could prove a learning experience on how to take one’s business to another country. Target must understand that from physical execution to understanding the customer, expansion into other countries is not a “copy/paste” exercise.
Walmart initially made similar mistakes in regard to customers in other countries, but they fixed them. After the failure of its international expansion in Germany, China and South Korea, Mike Duke (former CEO) said that Walmart had learned from past mistakes. “We must be more sensitive to local issues … We must understand global needs and trends.” They established a new President for emerging markets with the aim to spot in advance national differences. Today, Walmart International operates more than 6,100 retail units (55 percent of the total) in 26 countries outside the U.S. In fiscal year 2014, Walmart International net sales exceeded $136 billion (29 percent of their total, and growing).
Target must approach international expansion in the same way.
Through a special arrangement, presented above is the discussion from an article originally published on RetailWire. Read the entire RetailWire discussion here: http://www.retailwire.com/discussion/17655
Canada is about to get a whole lot sweeter. Swiss chocolatier Lindt plans to open 12 Canadian stores between now and 2016, spanning from British Columbia to the Maritimes. Lindt has retained a brokerage to locate retail space in a variety of different potential locations. The company is also growing substantially, having recently acquired competitor Russell Stover.
Two Lindt stores are already confirmed to open in Canada this fall. One will be at Ottawa’s Lansdowne Park, while the other will be at the Montreal Premium Outlets. Lindt expects to open five Canadian locations in 2015, and another five in 2016, and is seeking retail space in Ontario, Alberta, BC, Quebec and New Brunswick. The company currently has 20 Canadian locations, including two Toronto boutiques and 18 outlets in Ontario, Alberta, BC and Quebec.
According to Lindt’s Canadian brokerage, Think Retail, Lindt will consider openings in outlet centres, high streets, super regional malls, large open-air centres, airports and tourist destinations. Lindt seeks stores in the 1,250 to 1,800 square foot range. Preferred co-tenants include Whole Foods, William Sonoma, Sephora, Michael Kors, Lululemon, J Crew, Polo, Anthropologie, Cineplex Odeon, and a mix of casual full-service restaurants.
Last week, Lindt agreed to acquire Russell Stover Candies Inc. “It is a billion (dollar) deal. How much more than one billion I cannot say,” stated Lindt Chairman and Chief Executive Ernst Tanner, in an interview last Monday. Russell Stover generates annual sales of about US $600 million. The deal gives Lindt around 10% of the U.S. chocolate market, ahead of Nestle.
Lindt & Sprungli is recognized as the market leader in premium quality chocolate, offering a large selection of products in over 100 countries around the world. During more than 160 years of Lindt & Sprungli’s existence, it has become known as one of the most innovative and creative companies making premium chocolate, with six production sites in Europe, two in the US, and distribution and sales on four continents. Globally, the company employs approximately 9,000 people. In 2013, Lindt & Sprungli reported net sales in excess of US $2.88 billion.
Employee turnover affects every organization, across all industries and your company is no exception! Some industries are more prone to facing higher rates of turnover based on the types of roles they hire for or where they are located. With the recent economic improvements in the job market and the entrance of a new generation into the workforce, retail turnover rates have seen a steady rise over the last few years. How are you dealing with these factors?
Of course employee turnover directly affects your workforce staffing needs and employee morale, but are truly aware of the huge financial costs impacting your organization? Here are the top 5 reasons why retailers see employee turnover occurring in their organizations:
Inadequate training: Employees who feel they have not received adequate onboarding and training when they joined the organization as less likely to be satisfied in their roles. Feeling underprepared and lacking the support they need is holding them back from succeeding in their current roles. A good training program will give employees the key tools to grow in their current role and prepare them for future grow with the company. Introducing mentoring, training and development programs shows your organization values and is willing to invest in your talent. If you’re attracting great talent why wouldn’t you want to develop and retain them over time?
Lack of advancement opportunities: Employees who feel they lack the ability to grow with the organization will only stick around for so long. This is mainly caused by there being limited or zero advancement opportunities for employees to work towards. This can create a lack of motivation and decreased morale for employees who want to advance their career but feel there job is limiting that ability. Additionally, this can create fear within employees regarding job security and will ultimately drive them to look outside your organization for new opportunities. Would you stay at an organization if there was no room to grow? Most likely the answer is no.
Employees felt they were not integrated into the team: Feeling part of a team is something we can all relate to, and working for an organization is no different. Employees often leave organizations because they feel their contributions and achievements are either undervalued or not recognized. Allowing an employee to feel a connection between their efforts and the business’ success will help keep them engaged and feeling a part of the team. A great way to have employees integrated into the team is to incorporate collaboration between different teams and roles, this can help increase job satisfaction and give more variety in a workday.
Problems with work hours: A lack of flexibility in working hours has been known to cause employees to look elsewhere for new opportunities. Allowing employees the flexibility they need in their schedules will help reduce sick days, no shows and resignation. A work life balance is a topic we hear more about each day. If this is an area that your employees place a high value on, engrain that into your culture and let them feel it is an area you promote and see as important.
Poor treatment by managers: Working with a manager who treats you poorly or fails to support your working needs will ultimately affect your performance. Employees value routine and structure, managers need to understand that their actions have a direct effect on the type of work their employees will produce. Building a strong relationship with your employees where you can openly communicate and share ideas is key. A poor working environment will only cause employees to continually turnover. This is why having best fit managers in place who can grow, engage and retain employees is so important.
Here are some key questions to think about in regards to retaining your employees:
Does my organization have Career Development Programs in place?
How engaged is my current workforce and how do I measure this?
Are my employees a great fit for the organization’s culture?
What percentage of my workforce would I consider a “Best Fit”?
Lisa McCann is the Corporate Marketing Manager at Vancouver-based recruitment company, MindField Group.
