Posts Tagged ‘career’

Department Stores in Southern California – Bullock’s

Monday, January 3rd, 2011
  Bullocks Downtown Los Angeles – 1907 – Grand Opening

In 1907, John Gillespie Bullock and Percy Glen Winnet opened Bullock’s at the corner of 7th & Broadway Streets in downtown Los Angeles. The two had worked at The Broadway and convinced Arthur Letts, Sr, founder of The Broadway to back them in this new retail venture  targeting the more up-scale customer. The store grew over the years as it acquired buildings on 7th Street between Hill and Broadway; one of the buildings was a competing department store. In 1923, John Bullock and P. G. Winnet bought out Arthur Lett’s interest.

In 1929, the company opened its first branch store on Wilshire Boulevard. This luxury Art Deco designed  store targed the wealthy as they moved to the nearby Hancock Park neighborhood from the downtown’s West Adams district.  Later, the Bullock’s Wilshire store became a separate division within Bullocks. For years Bullock’s Wilshire merchandised the store in Palm Springs which only operated in the Fall, Winter, and Spring seasons. The Palm Springs store served the Hollywood community with winter homes in that area.

Bullock’s was known as a chain which targeted the better customer and provided unparalled customer service. The company had approximately 65 buyer/managers in each store until 1970. Up until then, the company believed that having buyers in each store for each department helped provide a localized assortment. However, it was hard for Bullock’s to buy from larger manufacturers as each store could not meet minimum quantity orders. The company did have exclusive relationships with key better vendors which helped it retain the better market position.

The third suburban store was opened in Pasadena (it was designed to be converted into a hotel if it did not succeed as a store). Later the chain continued to expand with stores in Westwood, the San Fernando Valley, Santa Ana, Torrance, Lakewood, San Gabriel Valley, Orange County, Las Vegas, Pheonix, and San Diego.

Bullock’s acquired  I.Magnin & Company in 1944 to form Bullocks-Magnin. In 1964, publicly held Bullocks-Magnin was acquired by Federated Department Stores. This was a hostile takeover. P.G. Winnet, the founder, opposed the sale. His son-in-law, Walter Candy who was President, was for the sale and gathered support of the management team.  Abe Fortes, who later became a Supreme Court Justice, was the attorney representing Federated. (Note: Bullock’s in Northern California was a separate division of Federated Department Stores.) This acquisition affected both Bullock’s and Federated for many years.  First,  many of the management team were protected for supporting Mr. Candy and the Federated acquisition so it was agreed that directional and management changes would not be made for five years. That is one of the key reasons Bullock’s did not convert to central merchandising until 1970. P.G. Winnet mostly continued working out of the Bullock’s-I Magnin offices but did visit stores and was known for pinning candy on sales people who he recognized as outstanding. Secondly, Federated was restricted from further growth through acquisition. The Justice Department was concerned that Federated was gaining too much share of the department store sector which at the time was the largest individual segment in the retail industry.

In 1988, Bullock’s was sold to the R.H.Macy Company as Federated was owned by Campeau and needed cash. As Macy’s-Atlanta took over merchandising,   Bullock’s lost its better positioning. As I understand it, under Macy’s store gross margin production shrank dramatically. In 1995, Bullock’s name was formally changed to Macy’s. Now, all the Bullock’s sites are known as Macy*s or Bloomingdales since the R.H. Macy Company was acquired by Federated Department Stores.

Bullocks was known for:

  • Merchandise assortments which trended towards better.
  • Higher quality salespeople who were focused on customer service.
  • Strong fashion presentation with upgraded and well-maintained stores.
  • Special events.

What happened???       When Federated Department Stores acquired Bullock’s it was a leader in Southern California but was marginally profitable. As management changes were made the company became highly profitable and in a dominant market position because the company secured top merchandising talent, invested in systems, and had the capital from Federated Department Stores to upgrade facilities and to expand into new markets. The downtown store continued to slide as the market demographics changed, the Southern California transportation system collapsed, and as customers shopped more at shopping malls. Bullock’s flourished until Nordstrom’s entered the Southern California market. At that time, Bullock’s began losing some of its fashion edge as markdown programs were reduced with the intent of increasing profitability but in reality allowed fashion to become stale in comparison to Nordstrom’s. Bullock’s remained dominant but should never have allowed Nordstrom’s to gain a foothold in Southern California. (Note: Terry Lundgren, CEO of Macy’s (Federated Department Stores) started with Bullock’s as a trainee. Keep in mind, the Bullock’s motto was….” to build a business which shall know no end”.

Today, the former downtown Bullock’s store building is divided between a St Vincents Jewelry Mart, a parking lot, and small retail stores. The Bullock’s Wilshire store now houses the Southwestern Law School. The Bullock’s Wilshire store is kept in its original Art Deco splendor and serves as a reminder of department store retailing in the grander days.

I started my retail career with Bullock’s. Although I grew up in Modesto, California, about 300 miles north of Los Angeles, I knew Bullock’s especially well. My mother was from Los Angeles. My grandmother used to knit infant clothing for Bullock’s downtown. My godmother, Ms. Paquita Machris, used to take me twice a year to Bullock’s Wilshire to pick out clothing. Her personal sales person, Ms. Dineen, met us at the MotorCourt and took us through the store followed by a lunch in the tea room where I enjoyed my first taste of Babas au Rhum. Years later,  I always made sure Ms. Dineen was well taken care of as she had the largest sales book in the entire Bullock’s chain. I joined Bullock’s when I taught Statistics at U.S.C. I then became a part of the Personnel department in the corporate offices. I remained with Bullock’s until 1978 when I was recruited to Mervyn’s, a new publicly held company in the San Francisco Bay Area.

My collection of Bullock’s postards are shown below. If anyone has memories of Bullock’s I hope you will feel free to memorialize your memories in the Comments Section below. I know I have many friends and co-workers who are anxious to do so. You must receive my permission to copy or reprint any of these postcards.

Bullock’s Downtown

Bullock's Downtown 1920's

July 4, 1921

DownTown LA 1912

Bullock's Downtown 1930's (note outdoor dining - before smog)

Bullock's Downtown - 1930's

First Floor 1914 - Later became Cosmetics floor

 

Gown Room - Third Floor - Pre 1920

 

Children's Departments - Fourth Floor - Pre-1920

Millinery Room

The Tea Room…..

Tea Room - 1920's

The Lobby - Tea Room

The Foyer - Tea Room - 1920's

The Foyer - Tea Room - 1910

Tea Room - The Grey Room - 1920's

Tea Room - 1920's

Tea Room - 1930's

Tea Room Kitchen - 1930's

California Poem Sent to Bullock's Downtown Customers - 1924

Bullock’s Wilshire – Opened 1929

Bullock's Wilshire

Bullock's Wilshire - Fine Pottery and Glassware

Bullock's Wilshire - Fine Jewelry Gorham Sterling & Precious Stones

Bullock’s Pasadena

Bullock's Pasadena - Designed to be a hotel if it did not work as a retail store.

Fashion Postcards Sent to Bullock's Pasadena Customers

Bullock’s Santa Ana

Bullock's Santa Ana - Company developed mall- Sister Company I Magnin is co-anchor

Bullock's Downtown Easter Placecard - Shirley Temple - 1928

This placecard was provided to me by someone whose Great Aunt worked at Bullock’s and kept this placecard. She had Shirley Temple, Ma Kittle, and Bob Hope as customers. I have not verified the signature. Bullock’s, Bullock’s Wilshire, and Bullock’s Palm Spring served many of the Hollywood Stars!

Restaurant Careers: The Path From Dishwasher To Chief Executive Officer May Now Include A Stop At Harvard

Sunday, November 28th, 2010

For years the food services industry has been labeled an industry for low pay and low skills. Research recently completed by Plummer & Associates, an executive search firm, shows quite the opposite. The food service industry now has highly educated leaders.

This new study on the education of Chief Executive Officers at the top 100 food service chains in the United States shows that today over 68% have college degrees. This study also shows a growing trend of CEO’s with advanced degrees as 18% hold MBA degrees, 2% hold MA/MS degrees, and 4% hold JD degrees.

For years the food service industry was known for its career path from ‘dishwasher to CEO’. Our research indicates that while this may have been a viable path in the past, the current trend is for a minimum of a college degree and there is an increasing importance placed on advanced degrees. This demonstrates the importance of the sophisticated intellectual tools and the strategic vision gained through higher education.

Like with other segments of the retail industry, the food service sector has consolidated from regional companies led by founding families into massive, complex businesses requiring sophisticated tools to manage them effectively. This new breed of food service businesses are intensely competitive and are constantly looking for cost and marketing advantages to enhance their market position.

According to Plummer & Associates, some of the complexities facing the food service industry demand a command of the following disciplines:

 Marketing – Sophisticated tools have elevated the ability to forecast demand and to measure customer buying pattern changes. These tools also help measure brand awareness, customer loyalty, and the return on investment for all marketing programs. With the advent of social network marketing, the methodology of communicating with the customer is changing.
 Merchandising – Food trends and tastes are constantly evolving. To create a competitive edge it is important that food service organizations be active in planning product life cycles, assortment strategies, and new product introductions backed by a superior product development process. All these strategies must mesh well with operations to prevent overwhelming production and unnecessarily impacting quality and costs.
 Supply Chain Management/Logistics – Today there are tools available to help food service companies secure significant cost advantages throughout the supply chain while simultaneously improving the quality of customer service. This can provide organizations with a significant advantage over competitors.
 Finance – This function has quickly progressed from recording history to active involvement in ‘creating value’ through analytics. This is important as the company competes in the market for capital.
 Legal – Our society has become more litigious making larger businesses more of an attractive target. The complexity of new regulations has resulted in an increase of the legal staff. A food service leader is now required to be more involved and responsible for setting the tone of legal strategies.
 Human Resources – Once considered just an expense, Human Resources managed effectively must now create differentiation versus the competitors. A company’s talent and culture, including a devotion to the customer, are now more important than ever.
 Information Technology – In the past, technology seemed to be the sole domain of the IT department. With advanced POS systems, the food service organizations learned the power of information and the ability to forecast demand by day part. Now, leading IT departments interrelate with the entire organization by providing useful information to aid in decision making, control costs, forecast and analyze. Companies are now operating enterprise wide systems and it is becoming mandatory that the CEO know the capabilities of these systems to ensure the company gains a competitive edge.
 Global Reach – The days when food service companies only operated stores in the U.S. with product secured from U.S. sources are long gone. The implications of global activities are enormous.

Forward thinking food service companies such as Pepsico (Yum!) and Pillsbury/Grand Met (Burger King) who saw the need for talented executives started recruiting programs to attract students from colleges and also actively recruited MBA’s. These recruiting programs are responsible for the majority of CEO’s now leading the food service industry.

For those who are looking to progress up the ladder in food service, the data demonstrates that it takes more than experience in the industry to become a CEO. The food service business now requires the sophistication that comes with a college education and the trend shows an increasing demand for the additional tools gained in an MBA program.

The research shows that a college education is far more important than the particular school attended. While Ohio State University produced three CEO’s, the University of Kentucky produced two, and the University of Central Florida produced two, no other school produced more than one. On the other hand, in regards to CEO’s with MBA degrees, the Graduate School of Business at Harvard University produced four which is statistically important. Close behind is the University of Chicago producing two. It is clear that the industry prefers graduates from the top tier graduate business schools.

Retail Executives: Recruiting Executives To A Family-Owned Company

Wednesday, August 18th, 2010

 

The first blush comment from most in the recruiting industry is that recruiting executives to family-owned private businesses is difficult or near impossible. But, if you look at the facts, there are large family-owned companies that have successfully grown and have successfully recruited top talent. For example, look at Hershey, S. E. Johnson, H. E. Butt, Wegman’s, Jockey International, and Carlson Companies as prime examples of successful family-owned businesses.

In my opinion, it is not the family ownership that makes recruiting difficult. The issue is the management style of the ownership. The style of the executive evaluating the opportunity is equally important.

An executive considering joining a family-owned business has several questions to ask. These are:

What will be my future with the company? Is there opportunity for personal growth? Are there family members involved who will limit my chances for promotion?

What is the financial health of the company and is the family willing to invest more or dilute their ownership through debt or equity? Is the family willing to be open about the financials and their strategies?

How willing is the family to invest in new equipment, research, systems, etc?

Is the family open to new ideas?

Is the family willing to share interest in the business to key executives? Will this interest be developed on an open basis? Will this be on a true partnership basis?

Is the family really willing to delegate responsibilities to non-family members?

How long does the family plan to own/control the company? What will be the exit strategy for the family ownership: IPO, strategic sale, or other? Are all family owners on the same page in terms of the exit strategy?

At the same time, family owners have questions to ask the prospective executive. Among the questions are:

Is this executive really committed? Will he/she put in the effort required to take the business to the next level?

Is this executive willing to share the risk? If the economy gets soft, will this executive pitch in and work harder and smarter and also accept the earnings declines that the ownership suffers…or will this executive just move on when times are tough?

Will this executive work with us as we ponder through difficult times and difficult financing issues?

Is this executive willing to put skin in the game (i.e.: personal finances, or extraordinary effort)?

The success or failure in both parties trying to develop an effective working relationship depends on both parties’ questions being put on the table and answered truthfully and in an open manner.

The company that is not willing to provide full and honest disclosure and not truly willing to answer all the executive’s questions will make recruitment difficult. A recruiter will be able to bring in a hired hand but will not be able to recruit a true partner for the business.

The executive who wants the upside but who also wants guarantees is probably not the right executive either.

For a recruiter, the challenge is to quickly learn about the family and their willingness to answer the questions candidates will ask. To the degree the family is willing to answer those questions will determine the level of candidate the recruiter will be able to bring to the table. This requires a skilled executive recruiter who knows how to assess family organizations and also assess candidates for their ability to fit the circumstances.

As a side note: These issues are not as important with larger family-owned public companies. In smaller family-owned public companies these issues and the management style are still important. Even though the ownership and the financial data is public information, the family involvement in the business and their longer term intentions need to be disclosed to potential executives. What is most important for the executive to discover in these circumstances is whether the family self-interests are aligned with the short- and longer-term needs of the business.

Retail Executives: Are you a job hopper?

Friday, July 23rd, 2010

One of the worst labels an executive can get is “job hopper”. This is an executive who has had multiple employment changes in a short period of time.

In the eyes of the prospective employer this raises many red flags. Job hoppers are usually the first candidates to be ruled out by employers and search firms as there are so many good candidates who don’t carry this baggage.

There are many reasons for too many career changes. These can be:
-unfortunate circumstances
-bad choices
-bad timing
-incompetence/malfeasance
-the idea that one should always be looking for the next job
-listening to a self-interested recruiter who wants the executive to move on to earn another fee.

We all make bad choices. Once is understandable. After that, it is a reflection upon the individual’s personal judgment or his/her inability to do good due diligence before accepting new employment.

Obviously, the executive who changes employment because of incompetence or malfeasance is always eliminated.

Just as importantly, the one who is always looking for his/her next job with another employer is also eliminated from candidate slates. The reason is simple. Employers are not simply looking to fill a position. They want someone in whom they can invest for future returns.

The tough issue is for those who ran into unfortunate circumstances.
-They had to leave an organization because of personal or family illness
-The family ended up not making the move or could not accept the new city
-The executive who followed a superior to a new company and accepted the superior’s due diligence on the new company which failed shortly afterwards.
-The new employer was acquired or new management was installed that terminated current employees.
-The economy tanked in 2009.

One of these events in a career is understandable. But two or three such events make it difficult to avoid the deadly job hopper label. Be honest and factual when you describe the circumstances to a prospective employer. Covering up your mistakes will only hurt you.

If you are labeled as a job hopper, it is very similar to having a low credit score. You can work your way out of it. You need to be dedicated to your new employer and committed to building your new career in that organization.

If you are tempted to make a jump simply to catch up with your peers, consider that you may be about to commit a fatal error.