Key to success in retail - Developing the skills of frontline managers

Last year at a forum organised by the Retail Institute, New Zealand’s top retail CEO’s agreed that well trained supervisors and managers are key to retail success and improving productivity in the retail sector.

Retail managers’ are vital to store performance. They set the tone for the store; they monitor, manage and magnify the behaviour of all store staff; and they need to be capable of creating the right customer experience in a variety of settings.

A 2009 survey by McKinsey and Company revealed that retail companies which successfully empower their frontline managers show significant increases in productivity and financial returns over those that don’t. Empowered managers are those that can confidently and safely make decisions, anticipate problems and coach their direct reports, rather than simply following and giving orders and solving day to day problems.

McKinsey and Company demonstrated that frontline managers require high levels of skill development to effectively perform their jobs. However, they get considerably less training and support than floor staff:

“while frontline employees receive extensive training and development, their managers—who may have had no previous experience leading others—do not. At all levels, executives believe that the little training they do receive fails to prepare them to take on leadership roles successfully”
This picture is consistent with the experience of the Retail Institute in New Zealand. 90 % of trainees signed on by retailers for formally recognised training programmes are shop floor staff, learning basic retailing and customer service skills. The percentage of supervisors and managers engaged in training is much less than Retail Institute would expect.

John Meeuwsen, CEO of the Retail Institute notes that “The level of communication skills – language, literacy AND numeracy skills - required for any business in today’s world has increased markedly, not only in terms of the ability to improve teamwork and the clarity of internal communications but also to empower store management to confidently manage stores to better meet the needs of locals and the increasing expectations of customers for ‘an experience’ ”

John Albertson, CEO of the New Zealand Retails Association agrees that there is a need for training at this level. “Many supervisors and managers are shop floor staff that have been promoted internally because of their excellent customer service or selling skills. Just because someone is a good salesperson, doesn’t necessarily make them a good manager. Training can help managers improve their management skills and keep up with changing retail trends.”

Retail Institute believes that the key to long term productivity and success is having strategically minded “thinking managers and supervisors”. Over the next few months, Retail Institute will be doing everything it can to encourage employers to support their supervisors and managers in developing their skills. It now has a complete range of training products for middle managers which will enable staff to progress from the shop floor to senior positions and which are formally recognised by the New Zealand Qualifications Authority – see below for a description.

Retail Institute will be approaching the CEO’s of New Zealand’s 160 or so chains and individual owner-operators to promote take up of the training available. With government support, these products are cost efficient and provide support to individual trainees according to need at localities throughout New Zealand. “This campaign is to help business owners understand the benefits of empowering their frontline managers’, says Retail Institute Marketing Manager Emily Stevenson.

Frontline Management Programmes Available

Retail Institute has worked with the industry to specify the content of two training programmes designed to develop the skills of retail supervisors and managers. Those who satisfactorily complete these programmes will gain formal recognition by gaining the National Certificate in Retail (Level 3) and the National Certificate in Retail (Level 4).

The programmes are modular, workplace based and skills learnt are directly reinforced on the job. The programmes are self-paced so supervisors and managers can work the programmes around their commitments. The programmes cover the following topics:

The National Certificate in Retail (Level 3)
The National Certificate in Retail (Level 3) is the supervisory level certificate for the retail industry. It is suitable for most retailers in a supervisory position or those who have completed the National Certificate in Retail (Level 2) and want to progress to the next level. The qualification covers:

• Store Management: Effectively managing the daily operation of your store requires you to effectively manage your staff and your store’s resources. The Store Management module covers store performance measures, assisting in the management of staff and reviewing and improving the effectiveness of loss prevention policies.
• Staff management: Staff management covers the fundamentals of teamwork and developing teams to be effective. After trainees have completed this module they will be able to analyse the strengths and gaps of their team, use techniques to coach and support their team, understand the staff recruitment and appointment processes in their store and the legal and contractual requirements of staff recruitment.
• Stock management: Managing stock effectively can positively impact on a store’s profitability. Stock management covers displaying stock, maintaining stock levels, preventing stock damage and wastage, identifying preferred and alternative product suppliers and how to complete a stock take in accordance with store policies and procedures.
• Knowledge management: Knowledge management covers elements of the marketing mix. After trainees have completed this module, they will be able understand company vision, identify target markets, use consumer behaviour concepts, enhance their product knowledge, maintain and comply with knowledge of legislation applicable to the sales of goods and services.

The National Certificate in Retail (Level 4)
The National Certificate in Retail (Level 4) is the management qualification for the retail industry. It is ideal for retail managers or supervisors, or experienced retail staff aspiring to become managers or supervisors. It is also designed for anyone who has completed the National Certificate in Retail (Level 3) and wants to step up to the next skill level. The programme contains two compulsory modules and two elective modules and comes with a supporting DVD.

The compulsory modules are: 

• Leadership Development: The role of a leader is to influence individuals and teams to work in a way that aligns with a workplace’s vision and values, ensuring goals are achieved. The Leadership Development module covers leadership and management, problem-solving, self-development and managing in a retail environment.
• Keeping Your Business Profitable: Being profitable is the core of business survival. There are many different aspects of store operations that impact on profitability. The Keeping Your Business Profitable module covers performing business calculations, running a profitable store, managing stock, keeping staff focused, safety and security and legislation and compliance.

The elective modules are (choose two):

• Creating Your Competitive Edge: Creating Your Competitive Edge is a marketing based module. It focuses on developing a point of difference, planning and implementing campaigns, developing a customer database and using it to develop customer relationships. 
• Informed Retail Sales: Informed Retail Sales covers reviewing store policies and procedures for float preparation, reconciling and solving variances in sales and takings, using effective communication techniques to match the motivations of customers, and using data to inform decisions.
• High Performing Teams: For a store to function smoothly there must be effective teamwork. When teams work effectively together staff are satisfied, there is lower staff turnover, and productivity is increased. The High Performing Teams module covers working collaboratively, communication skills, filling skills gaps and managing conflict.
• Training and Assessment in the Workplace: Training and Assessment in the Workplace is designed to build in-store capability by providing managers and supervisors with the skills they need to become trainers and assessors in their workplace. It covers developing training plans, providing guidance and feedback to staff, understanding unit standards and understanding verification.

Retail Institute
The Retail Institute is New Zealand's Industry Training Organisation for everyone working in retail. We work with the industry to improve productivity through developing qualifications and training materials for retailers.