Posts Tagged ‘wholesale’
Wednesday, April 24th, 2013
The pundits are having a good time poking fun at Ron Johnson’s expense. Yes, he made big mistakes. However, he was not the real problem.
Penney’s has been declining for years. The real blame belongs to the Board and the prior management. Over the years, J C Penney focused on the same customer and followed those customers as they grew older; management failed to attract younger customer. Everyone in retail knows the younger customers are the profitable customers. Only during the brief tenure of Allen Questrom and Vanessa Castagna did J C Penney do the right things.
I always believed the probability of success in Ron’s strategy to take JCP upscale and simultaneously attract a younger customer was unlikely. As retailers switch from one customer base to another, the retailer usually first finds the bottom of the Grand Canyon. That is where JCP is today. The old customers do not like what they see and the new customers do not like shopping with the old customers. In my mind, investors cannot afford to take the time required to successfully support a retail turnaround.
I have seen several retailers attempt to make customer base changes. Some that come to mind are:
- Abraham & Straus Department Stores – Brooklyn, New York
- Sears – The Softer Side
- Kmart- The New Kmart
- Mervyn’s – Mervyn’s California
All were colossal failures. On the other hand, Target did successfully make a change but it was done gradually and over several years. The customer base change was also less significant.
The essence of this story is that the Board and management need to keep their eyes focused on the long-term health of the company versus short-term quarterly tactics. The truth is that a merchant prince can seldom pull off a successful major change in customer base.
Tags: big box retail, big box retailers, Dallas, Department Store History, department stores, dina lokets, ecommerce, executive search firms, fashion, fashion careers, Fashion Institute, heidi plummer, J.C. Penney Co, JCP, john plummer, modesto, national retail federation, nrf, plano, plummer & associates, plummer and associates, Plummersearch, plummersearch.com, retail, retail careers, retail executive search, Retail History, retail recruiters, retailexecutivesearch.com, retailing, Specialty retail, susan gill, TEXAS, USC, wholesale, Womens Wear Daily, WWD
Posted in Uncategorized | No Comments »
Monday, January 31st, 2011
Downtown LA - May Company (after addition)
MAY COMPANY – CALIFORNIA – The Largest Department Store in the West
In 1923, the May Company based in St. Louis, Missouri, bought Hamburger’s in Los Angeles and re-named it May Company California. The May Company itself had started in 1877 in Leadville, Colorado, specifically to serve the silver miners. The May Company Department Stores expanded by moving to Denver and later purchasing Famous Brothers in St. Louis. It then moved to St Louis and merged with William Barr Dry Goods in 1911 to create Famous Barr. With the 1923 acquisition of the large Hamburger store in Los Angeles, it entered the California market.
For the first 15 years, the May Company California division focused on the downtown Los Angeles store. The first branch store was opened in 1939, at the corner of Wilshire Boulevard and Fairfax. Even though the Great Depression did not hit California hard, the May Company remained cautious. They did know that they needed a store in Western Los Angeles as that was where the population growth was happening. In 1947, after WWII, they opened a store in the Crenshaw shopping area where many of the aircraft plant workers lived. In 1952, they opened a large store in Lakewood, near the Douglas plant and airfield. Afterwards, the company began opening a new suburban store every year or two until their stores captured significant market share in Los Angeles, Orange, San Diego, and San Bernardino counties.
Like Broadway Stores, May Company was a mid-tier department store chain catering to the broad value oriented customer. The company developed strong merchants and, although highly promotional, they were great at following the fashion trends. I remember in the 60’s and 70’s when the juniors revolution was taking place, the May Company – California stores had a junior area that captured the times as well as the best junior specialty retailers. May Company was hot! In those days May Company California was a major profit producer for May Department Stores Company.
In later years, the May Company California expanded outside of California as the parent company bought Goldwater’s (Arizona) and incorporated the Goldwater’s Las Vegas store into a May Company California store.
In the late 1970’s and 1980’s May Company California stores started to show wear as the stores were not well-maintained under the expense control programs being implemented. The company still maintained strong merchandising programs and the May Department Stores Company became known for making money through effective merchandising. However, the California division was hurt by executive turnover and corporate programs that influenced and limited local merchandising.
In 1993, after the May Department Stores Company acquired Associated Dry Goods Company, the Associated’s W.J. Robinson & Company division was merged with the May Company California stores to form Robinsons-May. Robinson’s was an upper-tier department store operation and the merger of these two businesses first created some difficulties. When Bob Mettler became responsible for merchandising the problems seem to end as he differentiated the merchandising for the stores based upon local markets. He also brought a new level of enthusiasm to merchandising and buffered the merchandising team from the corporate merchandising pressures.
In 1984, the original store at 8th and Broadway was closed. The headquarters had moved out of that building years before. This area of downtown Los Angeles had deteriorated significantly.
In 2006, after the May Department Stores Company was acquired by Federated Department Stores, the Robinsons-May division was closed and the stores were converted to Macy’s or sold.
What happened????? Although May Company California was a strong and aggressive merchandising organization, they, like others, had difficulties facing increased competition. Nordstrom, Mervyn’s, Target, a reinvigorated J.C. Penney, Costco, and others were taking market share and operated with lower costs. The May Company reduced expenses in a manner that resulted in a less than pleasant shopping environment. Corporate turnover and control also caused problems and eventually ended local merchandising programs. In the end, the collapse of the parent company ended May Company California.
I have posted postcards of the downtown Los Angeles store, the Wilshire store and the Crenshaw store. Postcards of the downtown LA store are listed under Hamburger’s, the company May Company purchased in 1923. Postcards of the newer May Company California stores are, in my mind, not important for this blog. The newer stores were just big boxes with no architectural importance.
May Company Downtown LA 1930's
May Company California - Store at Fairfax and Wilshire Blvd -1940
May Company Store at Fairfax and Wilshire Blvd. Miracle Mile 1960's
May Company California - Crenshaw Store 1940's
Tags: Allied Stores, Associated Dry Goods, Beaux Arts, big box retailers, Carter Hawley Hale, City Stores, dayton hudson, defunct department stores, defunct retailers, Department Store History, department stores, Downtown Los Angeles History, executive recruiters, executive search, executive search firms, fashion, Fashion Institute, FEDERATED DEPARTMENT STORES, grand dames, grand dames of retail, J.W. Robinson & Co, john plummer, Los Anteles times, macy's, may company, May Company Department Stores, May Company Southern California, Merchantile Stores, modesto, national retail federation, nrf, plummer & associates, plummer and associates, plummer blog, Plummersearch, plummersearch.com, retail, retail executive recruiters, retail executive search, retail executive search firms, Retail History, retail recruiters, retail talent, retailexecutivesearch.com, retailexecutivesearchfirms.com, Robinson's May, skywalker, Specialty retail, susan gill, USC, wholesale, Womens Wear Daily, wsj, WWD
Posted in CALIFORNIA STORES, Retail Postcards | 8 Comments »
Saturday, January 22nd, 2011
The Boston Store - Los Angeles - 1910
J.W. ROBINSON & CO – Los Angeles
James Winchester Robinson opened his first store in 1881 under the banner of The Boston Store. The original store was located at Spring and Temple Streets. In 1914, the name was changed to J.W. Robinson & Company and it moved to a new location at 7th and Grand in a building designed by Noonan and Richards. In 1934 the building was modernized by Edward L. Mayberry. The downtown store had six floors of selling space. On the seventh floor were the restaurants, the beauty salon, and customer service. The women’s rest area and lavatory were reputed to be exquisite.
Robinson’s catered to the carriage trade as did Bullock’s and Coulter’s. The store presented better fashions and offered excellent customer service. For years the store competed well with Bullock’s in the downtown market because it was located west on 7th street in an area attractive to the upper-end customers.
In 1957, the company was acquired by Associated Dry Goods and became their fashion headquarters for the West.
In 1952, the company opened its first branch store in the Beverly Hills market. Robinson’s needed that store to capture the carriage trade: customers that were now shopping at Bullock’s, I. Magnin’s, and Sak’s stores located out on Wilshire and at the specialty shops on Rodeo Drive. Even Coulter’s had closed its downtown store and moved to Wilshire. Later, Robinson’s opened a winter-only store in Palm Springs to serve the customers who wintered there. Other suburban stores opened in Panorama City, Anaheim, Santa Barbara, Glendale, Pasadena, Newport Beach, Cerritos, Woodland Hills and the City of Industry.
In 1986, Associated Dry Goods was acquired by The May Department Stores Company (St. Louis). In 1993, the Robinson’s division of Associated Goods was merged with the May Company Southern California division to form Robinson’s May. This was a difficult marriage as May Company was targeting the moderated market and Robinson’s catered to the carriage trade. In 2005, after the acquisition of The May Company Department Stores by Federated Department Stores, the stores were either renamed Macy’s, Bloomingdale’s or were sold.
What happened???? Although Robinson’s had relatively good positioning in Los Angeles, it relied too long on its one store downtown. It did not have the clout with vendors to develop exclusive relationships. As the customers moved west to Beverly Hills and south to Orange County and when the downtown retail market declined, Robinson’s was slow to expand and gave up market share to Bullock’s, I. Magnin’s, Sak’s, and other retailers. Robinson’s started to rebound when Michael Gould became the CEO, but he did not get full support from the parent, Associated Dry Goods. When it merged with May Company, the company quickly lost the carriage trade customer.
I knew Robinson’s well as a competitor when I worked at Bullock’s. The downtown LA and the Beverly Hills stores were well-maintained and operated at high customer service levels. The management was not known as sophisticated. The management development program was not strong so the company was never able to develop talented merchants. I remember when the Attorney General for California looked into price fixing amongst the Southern California department stores. They found a folder amongst the corporate office files at Robinson’s entitled “Price Fixing Agreements”.
I wish there were postcards showing the interior of this wonderful store. I have only one which shows the women’s restroom. As soon as I locate it I will post it.
New Downtown LA J.W. Robinson Store Drawing
J. W.Robinson & Company - Los Angeles - 1917
J. W. Robinson & Company - Los Angeles - 1920's
J. W. Robinson & Company - Los Angeles - 1920's
J. W. Robinson & Company - Los Angeles - 1940 - After 'Remuddling'
Utopia Yarn/ J.W.Robinson & Co - 1940
Rogers Peet Suits/J.W. Robinson & Co. - 1941
J.W. Robinson & Co. - Beverly Hills Store
J. W. Robinson & Company - Newport
Tags: Allied Stores, apparel retail, Associated Dry Goods, big box retail, big box retailers, Boston Store, BULLOCK'S, Bullock's Wilshire, catalog, department store, Department Store History, department stores, direct marketing, Downtown Los Angeles Retail, Dowtown Los Angeles History, ecommerce, executive search, executive search firms, fashion, fashion careers, Fashion Institute, fast food, FEDERATED DEPARTMENT STORES, FIT, food service, J.W. Robinson & Co, J.W. Robinsons, john plummer, la times, LOS ANGELES RETAIL, LOS ANGELES RETAILERS, Los Angeles Times, macy's, may company, May Company Southern California, May Robinson, MBA, modesto, national retail federation, New york Times, nrf, NYT, plummer & associates, plummer and associates, Plummersearch, plummersearch.com, private companies, retail, retail careers, retail executive recruiters, retail executive search, retail executive search firms, retail recruiters, retailers, retailexecutivesearch.com, retailexecutivesearchfirms.com, retailing, Robinson May, Robinson's, shop TV, skywalker, Southern California History, SOUTHERN CALIFORNIA RETAIL, SOUTHERN CALIFORNIA RETAILERS, Specialty retail, stores, Supply Chain, susan gill, USC, wholesale
Posted in CALIFORNIA STORES, Retail Postcards | 10 Comments »
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!
Tags: apparel, apparel retail, big box retail, big box retailers, BULLOCK'S, Bullock's Alumni, BULLOCK'S DEPARTMENT STORES, Bullock's History, Bullock's Palm Springs, Bullock's Wilshire, career, careers, catalog, defunct department stores, defunct retailers, Department Store History, DEPARTMENT STORE POSTCARDS, department stores, direct marketing, ecommerce, employment, executive search, executive search firms, fashion, fashion careers, Fashion Institute, fast food, FDS alumni, FEDERATED DEPARTMENT STORES, food service, grand dames, heidi plummer, Hollywood Celebrities, I MAGNIN, KCET, L A Times, los angeles, Los Angeles Department Stores, Los Angeles History, LOS ANGELES RETAIL, LOS ANGELES RETAILERS, macy's, modesto, national retail federation, nrf, Orange County Register, plummer & associates, Plummersearch, plummersearch.com, POSTCARDS, R H Macy, retail, retail careers, retail executive recruiters, retail executive search, retail executive search firms, Retail History, Retail Los Angeles, retail recruiters, retail stores, retail talent, retailers, retailexecuivesearch.com, retailexecutivesearchfirms.com, San Fernando Valley News, San Gabriel Valley News, Santa A, Santa Ana Register, Shirley Temple, shop TV, skywalker, SOUTHERN CALIFORNIA RETAIL, SOUTHERN CALIFORNIA RETAILERS, Specialty retail, stores, supermarkets, susan gill, The Daily Breeze, USC, wholesale, Womens Wear Daily, wsj, WWD
Posted in CALIFORNIA STORES, Retail Postcards | 23 Comments »
Tuesday, December 21st, 2010
Plummer & Associates, Inc.
P.O. Box 607
New Canaan, Connecticut 06840
(800) 603 9981
www.plummersearch.com
Happy Holidays!
At this time of year we all think of our relationships, friends and family. We also like to review our successes and seek areas for improvement.
2010 has been a better year for all of us involved in retail. Although the economy has a long way to go to fully recover, there are significant signs of improvement indicating that the consumer is spending more. That bodes well for all of us!
At Plummer & Associates our commitment is to do a better job than we have before. During the deepest part of the recession, we spent time re-thinking our business model and how we serve our clients. We have always been proud of our success in recruiting top candidates who excelled with our clients, but we challenged ourselves to work more efficiently and at less expense to our clients. We as a team are proud of what we have accomplished.
We have now added a blog to our website: www.plummersearch.com/blog. Currently this blog covers topics related to talent development and information for candidates. In January, as part of our contribution to the retail industry, the blog will cover the evolution of downtown retailers for the prime period from 1880 to 1960. Our first blog will cover the stores of Southern California and the second will cover Northern California. Over time, we will cover all states and provinces in North America, utilizing our collection of over 10,000 retail store postcards.
For now, we thank you for our relationship and want you to know that we are honored to work with you. We trust we have earned your respect so that we may continue this relationship in 2011.
We wish you the best for the holidays and look forward to being in touch in the New Year.
Sincerely,
John Plummer
Susan Gill
Heidi Plummer
Dina Lokets
Kathy Brooke
And the Plummer & Associates Team
P.S. The Santa buttons above are from our collection representing retail stores in the U.S., Canada, Mexico, and the U.K.
Tags: A&S, Abraham and Straus, Allied Stores, Bambergers, Black Stores, bloomingdales, Bon Marche, Bon Ton, Boston Stores, broadway, buffums, BULLOCK'S, Burdines, capwell, Carson, Carson Pierie Scott, Christmas, City of Paris, City Stores, Davidsons, Department Store History, department store santa pinbacks, department stores, emporium, FEDERATED DEPARTMENT STORES, Filene's, food service, Gimbel's, Goldsmiths, Hambergers, happy holidays, heidi plummer, holiday greetings, holiday pinback, Holiday Season, I MAGNIN, J Magnin, J.W. Robinsons, john plummer, Lord & Taylor, Macy, macy's, Marshall Fields, May Company Department Stores, Meier & Frank, Merchantile Stores, modesto, national retail federation, Nordstrom, nrf, plummer & associates, plummer and associates, Plummersearch, plummersearch.com, restaurants, retail careers, retail executive search, retail executive search firms, Retail History, retail holiday greetings, retail recruiters, retailexecutivesearch.com, Rhodes, Richs, santa, santa pinbacks, Seasons Greetings, Specialty retail, store, susan gill, thalheimers, USC, Walker Scott, Wannamaker, wholesale, Woodward Lothrup
Posted in Uncategorized | No Comments »
Monday, November 22nd, 2010
Should an unemployed retail executive suspend his/her job search during the holidays?
Every retailer knows the holiday season is a busy time. Store executives are working iron days, merchants are following sales trends closely to ensure inventories are balanced, human resources are keeping the stores staffed with temporary employees, and senior management is in constant angst about the season’s prospects. Your natural fear is that retail executives will not have the time to consider you for employment or that you will be seen as a pest if you bother them.
Nothing could be further from the truth! In fact, if you suspend your job search during the holidays you might be losing out on some significant opportunities. Keep in mind…
1. Retailers traditionally make executive changes after the fiscal year ends on January 31. January, February, and March become the busiest seasons in the recruitment of retail executives. As a result, the holiday season is a good time for you to make an impression with retail executives; and,
2. Retailers with positions open want to fill them before the fiscal year ends.
Your approach during the holiday season is important. Following are some things to think about for your holiday season job seeking activities:
• Retailer executives, like everyone else, think about family and friends during the holiday season. This is a good time to keep in contact with your network by sending a holiday email with your resume attached and letting them know that you appreciate any referrals as they hear about opportunities. You might also consider making a short call to wish them the best. Your object is just to stay in front of them.
• If you know a specific company has a current opportunity, be aggressive. No matter how busy they are, they need to fill that position before the end of the fiscal year.
• This is also a good time to build your relationships with recruiters, and industry consultants. They are not as harried as those in the retail industry.
Tags: apparel, apparel employment, apparel retail, big box employment, big box retail, careers, catalog, christmas employment, cosmetics, department store, direct marketing, ecommerce, employment, employment opportunities, executive search, fashion, fashion careers, fast food, fast food employment, grocery, grocery employment, holiday employment, job search, john plummer, modesto, plummer & associates, plummer and associates, restaurant employment, resume, retail, retail careers, retail employment, retail executive, retail executive search, retail executive search firms, retail jobs, retail recruiters, retail services, retail talent, retailers, retailing, seasonal employment, shop TV, skywalker, Specialty retail, supermarkets, USC, wholesale
Posted in Candidate Information | 1 Comment »
Monday, October 4th, 2010
I often discover a gap in a candidate’s employment history while reviewing their resume. What is surprising is that so many individuals do not know what to do about these employment gaps. Some individuals try to hide it, which is lying. Others try to stumble through an explanation which makes an employer suspicious.
There are many reasons for a gap in your employment history. These could be:
- Your employer went out of business leaving you looking for employment.
- Your employer terminated your employment due to a staff reduction.
- Your employer terminated you for cause.
- Or, you quit.
Any of these reasons could leave you with an employment gap while you were looking for a new career. Sometimes, the gap is longer because of an economic downturn or because your family did not want to relocate.
What ever the reason, you should show the employment gap on your resume and be ready to fully explain what you were doing during that time. If you do not have a prepared and honest explanation it will lead prospective employers to think that something else was going on in your life … maybe incarceration.
The last thing you want to do is cover up an employment gap. If your perspective or, worse yet, your new employer finds out about the cover up, you will most likely be not hired, or terminated. Now, it is too easy for employers to verify accurate dates of employment; and, employers do check.
Honesty is the best explanation. An example of a good explanation is ….” after I left company xyz, I started looking for opportunities in my city. Unfortunately, there are no other retailers there so I tried to transfer my skills to another industry. My son/daughter was in his/her senior year in high school so our family made a choice not to relocate. A year later, I found myself still looking. With my son graduating, our family has now agreed to relocate.”
There are many other reasons. Do your best to honestly explain the situation.
Tags: ace hardware, Amazon, amercian apparel, auto zone, big box retail, big box retailers, catalog, charming charlie, Chipotle, creers, Darden Group, department stores, dina lokets, direct marketing, ecommrce, employment, employment gaps, employment opportunites, employment opportunities, executive search, executive search firms, fashion, fashion careers, fashion industry, fast food, food service careers, Gap, HEB, heidi plummer, home depot, J.C. Penney, job changes, job search, john plummer, kroger, Limited, lowes, macy's, McDonald's, modesto, Morton's, Nordstrom, orchard supply, plummer & associates, plummer and associates, Plummersearch, plummersearch.com, Publix, recruiters, restaurant careers, restaurant recruiters, resume, retail, retail careers, retail executive recruiters, retail executive search, retail executive search firms, retail recruiters, retailexecutivesearch.com, retailexecutivesearchfirms.com, retailing, safeway, Sears, shoptv, skywalker, stores, supermarkets, Supply Chain, susan gill, the gap, True Religion Jeans, trueserv, USC, Walmart, wholesale, Womens Wear Daily, wsj, WWD, yum
Posted in Candidate Information | 8 Comments »
Tuesday, August 31st, 2010
In 2009, our firm published an article (listed below) indicating the level of higher education held by the CEOs of the top 100 retail companies. We have now identified the ten currently highest paid retail executives and have discovered that this group confirms our previous study. The complexity of the retail business is such that executives who possess the most intellectual tools rise to the leadership roles. The statistics are as follows:
Education of Highest Paid CEOs Education of Top 100 Retail CEOs
BA degrees 90% 85%
MBA degrees 10% 23%
JD degrees 10% 6%
According to our research, the following executives fall into the category of the top ten highest paid executives. Total compensation for each is based upon current public records of publicly traded retail companies in the U. S.
Andrea Jung. Chairman and CEO – Avon
Total Compensation: $13.7 million
Education: Bachelor’s – Princeton University
Michael T. Duke. President, CEO and Director – Wal-Mart
Total Compensation: $13.3 million
Education: Bachelor’s – Georgia Tech
Terry Lundgren. Chairman, President and CEO – Macy’s
Total Compensation: $8.7 million
Education: Bachelor’s – University of Arizona
Francis S. Blake. Chairman and CEO – Home Depot
Total Compensation: $8.3 million
Education: Bachelor’s – Harvard College
JD – Columbia University
Myron E. Ullman – Chairman and CEO – J.C. Penney Company
Total Compensation: $8.0 million
Education: Bachelor’s – University of Cincinnati
Trudy Sullivan – President and CEO – Talbots
Total Compensation: $6.9 million
Education: Bachelor’s – Manhattanville College
Katherine L. Krill – CEO, President and Director – Ann Taylor Stores
Total Compensation: $6.9 million
Education: Bachelor’s – Agnes Scott
Robert A. Niblock – Chairman and CEO – Lowes
Total Compensation: $6.1 million
Education: Bachelor’s – University of North Carolina
Gregg W. Steinhafel – Chairman, President and CEO – Target
Total Compensation: $6.0 million
Education: Bachelor’s – Carroll College
MBA – Northwestern University
Carol M. Meyrowitz – CEO – TJX
Total Compensation: $5.7 million
Education: no degree
Following is the study we released in April, 2009, on the education level of the CEOs for the top 100 retail chains.
TOP RETAIL EXECUTIVES HAVE TOP EDUCATIONS!
A new study conducted by Plummer & Associates on the Chief Executive Officer education at the top 100 retailers in the United States shows that today over 85% have college degrees. This represents a significant increase over Plummer & Associates’ 2002 study that showed only 60% had earned college degrees. The number with advanced degrees has remained about the same; however, the new study shows the breakdown at 23% with MBA degrees and 6% with JD degrees.
Does this continuing trend mean that the industry can no longer be led by the person who starts with a push cart? Our research shows that while working your way to the top may have been a viable career path in the past, the constantly evolving and complex nature of today’s retail landscape requires that executives must couple their ground up experience with the sophistication and strategic vision gained through earning a college degree.
Retailers have consolidated from regional companies led by founding families into massive, complex businesses requiring sophisticated tools to manage them effectively. This new breed of retailers is intensely competitive and constantly looking for cost and marketing advantages to secure their market position.
Some of the complexities facing retailers today demand a command of the following disciplines:
- Marketing – Sophisticated reporting systems have elevated the ability to forecast demand, measure customer buying pattern changes, brand awareness and customer loyalty, and help build brand value. Each retailer now operates through more than one channel, (retail, e-commerce, catalog, direct marketing) requiring that the decisions made for each channel are highly strategic.
- Supply Chain Management/Logistics – Today there are tools available to help retailers secure significant cost advantages throughout the supply chain while simultaneously improving customer service. This gives retailers significant competitive advantages.
- Merchandise Management – Advanced technologies are now required to source merchandise for product development, assortment planning, SKU rationalization, customer knowledge, trend analysis, and inventory and category management. The most important part is using these technological advances to increase profitability.
- Finance – This function has quickly progressed from recording history to active involvement in creating value through analytics and is now vital in allowing a retailer to compete for capital against all other industries.
- 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 in legal staff. A retail leader is now required to be more involved and responsible for setting the tone of legal strategies.
- Human Resources – Once considered just a major expense, Human Resources managed effectively must now create differentiation versus competition. A company’s culture and 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 retailer has learned the power of information and no longer relies solely on market information provided by the vendor. Leading edge IT departments now 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 the CEO must know the capabilities of these systems to ensure the company gains a competitive edge.
- Global Reach –The days when retailers only operated stores in the U. S. with product only secured from U. S. sources are gone. The implications of the global activities are enormous.
Forward-looking retailers who saw the need for talented executives brought highly educated executives into the retail industry. In the late 60s and 70s the retail industry started recruiting top students from colleges and graduates from MBA programs. The top leaders at that time were: Jewel Tea, Federated Department Stores, J.C. Penney Co, Sears Roebuck & Company, Kroger, The Dayton Hudson Corporation, and The May Department Stores Company. Those recruiting programs have produced many of the CEOs of today’s successful retailers.
For those looking to progress up the ladder in retail, the data indicates that the career path from bagperson to CEO is no longer viable, nor practical. Retailers striving to be successful must compete for the best educated. And future leaders in retail must strive to educate themselves and that education must include minimally the rigors of earning a bachelor’s degree. Earning an MBA and/or a JD degree greatly improves one’s chances. This is not because one needs a degree to punch up a resume; rather it is the intellectual tools gained through formal education combined with on-the-job training that prepares an executive for the rigorous and evolving challenges facing retailers today.
While the 2002 study indicated no particular school had the lead in producing future CEOs, the current research indicates that a new trend is starting to develop. Harvard University has taken the leadership position having five CEOs with undergraduate degrees and five with MBA degrees. Second is The University of Pennsylvania’s Wharton School of Business with three CEOs holding an undergraduate degree. Columbia University and the Kellogg School of Management at Northwestern University are tied with three CEOs each holding MBA degrees. The University of Illinois has three CEOs with undergraduate degrees.
It is clear the retail industry needs to compete in the market place to bring the brightest talent with superior intellectual tools and education to manage the business for the future.
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Posted in Candidate Information, Talent Development/Education | 23 Comments »
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.
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Posted in Candidate Information, Talent Development/Education | 5 Comments »
Wednesday, August 11th, 2010
Following is an article on ‘Why College Graduates Should Seriously Consider Retail as a Career’. I published this article earlier in the year. I feel this is timely. I also feel the industry must do more to boost its reputation within the academic community.
Plummer & Associates, a Retail Industry Expert Offers The Following Advice to Students Entering Careers in Retail…
John Plummer, Plummer & Associates
Plummer & Associates, a Retail Industry Expert describes why Retail is now an attractive career for college graduates.
With over 40 years experience in human resources management and search consulting, John Plummer has developed a highly consultative approach to executive recruiting and as a human resources executive, he held senior management positions with major retailers.
John Plummer currently is President, Plummer & Associates, a New Canaan, Connecticut, based boutique executive search consulting firm which specializes in recruiting senior officers for the retail industry. Over the years, he has recruited teams for growth retailers (Staples, Starbucks, 24 Hour Fitness, Urban Outfitters, Anthropologie, Hot Topic!, Chipotle, Jamba Juice, Ulta Salon Cosmetics & Fragrances, The North Face, and many more of the retailers) that have changed the retail landscape. Previously, he had served as a human resources executive for divisions of Federated Department Stores, Fedmart*, and Mervyn’s. He graduated with his MBA degree in 1968 from the University of Southern California and also earned his BA in economics from USC.
“Many years ago when I graduated with an MBA degree, I joined Bullock’s Department Stores in Los Angeles where I had already been working on a part-time basis. I quickly heard from Professors and peers that I had made the wrong choice. They said the industry was not sophisticated enough to use my newly learned tools nor would retail offer the challenges needed. Being contrary, I decided to stay. Of course, being paid more than anyone else in his class comforted him a great deal. “
Well, things have changed. Retail is now a highly complex and sophisticated industry offering incredible challenges and the opportunity to put your new skills to work. When John Plummer joined retail, the organizations were primarily run by owning families and few executives were college educated and most were tactical in orientation. Now, the leaders of the top retail organizations are well-educated with over 85 % having college degrees(1) and 23% having MBA degrees(1). As retail continues to grow Plummer & Associates expects the percentage with college degrees will approach 100% and that the percentage with MBA degrees will be close behind.
What has changed….
First, the industry has consolidated from mostly family-owned and managed regional chains into large corporations operating nationwide and globally.
Secondly, these large businesses are in a highly competitive environment and require sophisticated solutions to strengthen the relationship with the consumer, to manage inventories effectively, to effectively utilize operating and capital expenditures, and to build management, systems, and other infrastructure to support growth and to serve the customer.
Thirdly, the industry works in an ever changing environment in which new ways to serve the customer are constantly being invented along with new ways to communicate with the customer. More importantly, the customer base needs to be better understood to seek ways to better serve the targeted customer as well as to understand consumers who could be effectively served and brought into the customer base. E-commerce has become mainstream over the past few years and opportunities through mobile-commerce are just starting to grow. Who knows what the next channel will be.
Fourthly, global growth in retail has been slow to take hold but is now a significant opportunity. For years global retail seemed to be limited to the luxury brands. Now, the food service industry is rapidly expanding on a global basis (examples: McDonalds, Yum!, Starbucks, etc). Mass merchandising is also expanding rapidly with Carrefour having stores worldwide and Wal-Mart, Staples, Best Buy, Costco, and others catching up. This growth demands executives who have the tools to be effective in different cultures with differing ground-rules.
Lastly, the industry is led by executives who know that highly talented executives are required to lead the businesses going forward. These executives have organized the business so that college graduates can quickly assume roles with responsibilities and require intellectual rigor and offer greater satisfaction.
The Opportunities…
Marketing…
Market Research – The industry is learning more about how to target consumer segments and how the company can expand that customer base without negatively impacting on the relationship with the core targeted customer. The opportunities are significant for the individual who knows how to design research and who is able to interpret the information into strategies.
Advertising/Sales Promotion – This was what retail was known for and is still an important role. But, with the growing use of social media the communication with customers is changing dramatically.
Merchandising – This role is constantly evolving. Merchants no longer make decisions based upon ‘gut feel’. In the past the manufacturer had all the customer information. Retailers with sophisticated point-of-sale information now know which products best meet their customer needs. As a result, the merchant is now an interpreter of the research and sales data and is often partnering with the manufacturer in product design, quality control, and costing.
Brand Management- Retailers now know that a nameplate is no longer sufficient and that strong brand management principles are required to be consistently successful and that the brand must be carried out through all marketing materials, the store experience and the e-commerce experience. This requires that marketing be involved in store operations, store design, human resources and all other areas of the enterprise.
Management…
Store Management – Retail is a labor intensive industry regardless if it is in the food service, retail services, grocery, or fashion sectors. The industry will always need executives who can manage people effectively towards meeting customer expectations and to carry out the essence of the brand.
Operations Management – The opportunities in supply chain management are significant. The efficient movement of merchandise is critical to stay competitive.
Store Development – As retailers look for better predictors of success in store locations and store design, executives are needed with sophisticated financial modeling tools, location selection tools, and store design tools. Green tools are also highly important to reduce energy costs and carbon footprints.
Process Improvement – As with any older industry in a new innovative climate, the retail industry now requires executives who can evaluate procedures and processes starting with a fresh pad rather than looking for incremental improvements.
Finance…
Accounting/Reporting – With new financial systems, the size of the accounting and reporting organizations has shrunk but opportunities exist for those who know how to work with and get the most out of financial systems.
Financial Planning & Analysis – Retailers look to the financial organization to provide the analytics and lead in the development of forecasts and budget planning. Opportunities are significant for those with strong analytical tools.
Creating Value –The role of financial executives as teachers and coaches in working with the other functions in the organization to help them understand the financial implications of their decisions is growing in importance.
Corporate Finance – Retailers require financing to support inventories all year and also require financing to support growth.
Information Technology …
Over the past few years systems have been developed for merchandising, supply chain management, financial management, and operations management. Now, systems are being built to better handle channels such as e-commerce, direct marketing, m-commerce, and shop-television. In addition, new communications are being established with social networking and media. This is creating a demand for executives with greater IT knowledge.
Human Resources …
Talent Acquisition… Because retail is people intensive, there is always a need to recruit people. More important, is recruiting top talent with the appropriate skills and style to meet the company’s objectives. Understanding new methodologies to recruit talent through social networking and other new practices, policies, and procedures is increasingly important.
Human Capital Development… Identifying talent within the organization and developing that talent to each individual’s potential is significantly important to the survival of a retailer in supporting growth and achieving brand standards throughout the organization.
Talent Retention… No good retailer can afford to lose good talent. Understanding what causes talent to leave and understanding what it takes to retain top talent is of utmost importance.
Compensation and Benefits… Retail has moved to understanding the importance of talent and retaining top talent. As a result, compensation and benefit plans are needed to provide the best return on investment.
Human Capital is no longer considered an expense. Instead, it creates a major differentiation between one retailer and all others.
Which Industry Segments Offer Opportunities
Food Service – Growth in the food service sector is significant. The best growth opportunities are in quick serve and quick casual. Look at the growth of Starbucks, Yum! (Taco Bell, Pizza Hut, KFC), Chipotle’, Jamba Juice, both in the U.S. and internationally. The opportunities because of this growth are significant. Only the sit down dining sector is experiencing slow growth.
Fashion Specialty – Although the U.S. has been over-stored in fashion, the shake out due to the recession is creating new opportunities for the stronger retailers. In addition, fashion manufacturers are opening company owned retail stores.
Hard-lines Specialty – This sector has faced the most challenges during this recession. Growth has slowed for most hard-lines retailers. The growth opportunities are primarily with Home Depot, Lowes, Dick’s Sporting Goods, AutoZone, Petsmart, and similar operations.
Mass Merchandising – This group consists of Wal-Mart, Target, Carrefour, Costco, Sam’s Club, Metro and similar chains. These are sophisticated and driven retail organizations offering significant opportunities in the U.S. and globally. These retailers are also broadening their customer bases and are expanding their merchandise assortments.
Grocery – The grocery industry was caught off guard with the advent of the warehouse clubs and the entrance of mass merchandisers into the grocery categories. These retailers are fighting back through the development of better operating strategies and marketing strategies. It was just announced that almost 50% of Wal-Mart sales are from the grocery categories. At the same time, new successful concepts such as Trader Joe’s, Aldi, and Whole Foods are growing rapidly.
HBA/Drug – This segment has consolidated heavily down to only a couple of major players who are highly sophisticated. They are also redesigning the business model through the addition of mini health clinics and the addition of third party drug provision services. The innovation in this segment will grow in geometric progression.
Retail Services – This is another major growth category and is a result of consumers need for services provided by a reliable brand. All you need to do is look at the growth of Geek Squad, Jiffy Lube, Jackson – Hewitt Tax Service, California Closets, Aamco, Merry Maids, just to name a few.
E-commerce, catalog, shop television, direct selling, direct marketing, m-mobile – The growth of e-commerce has taken share away from traditional catalog retail and direct selling and direct marketing channels. The emergence of multi-channel strategies and the advent of m-commerce will ensure growth in this broad sector.
New Ventures – This has always been the most exciting part of retail. Just look at the new companies that have developed within the last twenty years into industry dominance. For example, look at Starbucks, Staples, Office Depot, Anthropologie/Urban Outfitters, Amazon, PeaPod, 24 Hour Fitness, Trader Joe’s, Whole Foods, Geek Squad, Best Buy Mobile, Jamba Juice, Chipotle’ Mexican Grill, and all the other major retailers which have evolved from a twinkle in the eye to powerhouses.
What is the most rewarding factor?
The most important feed back an executive finds in the retail industry is the customer’s response to new actions and strategies. Regardless of whether you run an entire retail organization or just a small market, you can quickly see the results of your activities. This inspires self-confidence and drives your ambition to do and try more. Nothing builds esteem like seeing your success!
How to investigate a career in retail?
Check with your placement office for when a retailer will be interviewing at your school. If retailers are not interviewing at your school, I strongly recommend you contact the senior human resources executive at the retailer you are interested in joining. A letter to that executive will get you considered for the company’s executive development program. You may find a position at a local branch at a major chain, but that usually will not offer you the opportunity to quickly move into a decision making role.
For more
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Posted in Candidate Information, Talent Development/Education | 53 Comments »
