Retail executives tend to track sales figures as their most important metric, but in my experience, trying to maximise sales figures alone makes little sense. As in sport, focusing on the score won’t work on its own. Only good and consistent practice, combined with a commitment to continually improve skill and technique will deliver the desired results. The scoreboard simply reflects the results achieved in the more mundane variables.
A few years ago a well-known strategic thinker stated that any futurologist who back in the early 1990s did not predict the emergence of the internet should seek alternative employment, himself included. Yet, in spite of our inherent inability to foresee the major shifts that invariably occur we keep trying.
On 19 June 2015, retailbiz.com.au reported a claim by CHOICE magazine that shoppers could face a 250%+ price hike on goods purchased online from overseas if the Federal Government closes a highly damaging loophole in the GST system.
The vast majority of people don’t steal, but some do and this small minority finds retailers particularly temping targets – they have money and goods, with relatively easy access to both.
In its 1 May 2015 edition, Fortune magazine featured an article by Leena Rao about the perils of email in modern enterprise. Apparently, we now spend one third of our work time managing emails.
The ‘Fair Work’ Commission recently announced a 2.5% increase to minimum wage, effective from 1 July 2015. This may be old news to you, but the misguided nature of this decision cannot go without comment. The increase creates issues at many levels, some of them strategic, with long-term consequences.
In August 1996, I wrote an editorial for The Quality Magazine, titled ‘Quality Management in Retail’. In the article, I lamented the lack of interest in TQM (Total Quality Management) amongst Australian retailers. Twenty years later, the industry still struggles with sub-optimal results, but I believe that I’ve now discovered one of the reasons why TQM gets the cold shoulder.