Retail stores sell a wide range of merchandise and provide services directly to the customer. Retail establishments are found everywhere and include shops that sell a wide variety of goods, such as large supermarkets and department and general merchandise stores. Also included are stores that sell specific lines of merchandise, including meat and fish markets, bakeries, and clothing, shoe, hardware, electronic, furniture and homefurnishings, and drug and liquor stores. Retail stores also provide services directly to the customer, and include restaurants and bars, automotive and boat dealers, and vehicle service stations. Managers who work in these establishments, generally called retail managers, are responsible for the success of retail stores. They insure that retail businesses function smoothly and efficiently, and provide quality goods and services to the customer. (Managers in eating and drinking places, the largest retail trade industry, are discussed in the Handbook statement on restaurant and food service managers.)
Retail managers have many responsibilities, depending on the size and type of establishment. Managers coordinate and direct all aspects of retail trade, including ordering, inspection, pricing, and inventorying of goods; monitoring sales activity; developing merchandising plans; maintaining good customer relations; monitoring profits and losses; and coordinating displays, advertisements, and sales announcements.
Retail managers supervise, among others, chefs, cooks, and other kitchen workers, food and beverage service workers, retail sales workers, cashiers, customer service workers, stock and inventory clerks, and grocery clerks. (Some of these occupations are discussed elsewhere in the Handbook.) Retail managers also are responsible for interviewing, hiring, and training employees, as well as preparing work schedules and assigning workers to their specific duties.
Because the retail trade industry provides goods and services directly to customers, the retail manager is ultimately responsible for complete customer satisfaction. Answering customers' complaints and inquiries, and ensuring that customers receive prompt service and quality goods, is the primary duty of retail managers.
As the size of the retail store and the types of goods and services increase, retail managers increasingly specialize in one department or one aspect of merchandising. Larger organizations tend to have many layers of management. Similar to other industries, supervisory level retail managers usually report to their mid-level counterparts who, in turn, report to top-level managers. Small stores and stores that carry specialized merchandise typically have fewer levels of management.
Supervisory level retail managers, often known as department managers, provide the day-to-day management of individual departments such as shoe, cosmetic, or housewares in large department stores, produce and meat in grocery stores, and service and sales in automotive dealerships. Department managers commonly are found in large retail stores. These managers establish and implement policies, goals, objectives, and procedures for their specific department; coordinate activites with other department heads; and strive for a smooth operation within their specific department. They supervise employees who price and ticket goods and place them on display, clean and organize shelves, displays, and inventory in stockrooms, and inspect merchandise to ensure that none is outdated. Department managers also may greet and assist customers to improve customer services and promote sales and good public relations. Department managers also review inventory and sales records, develop merchandising techniques, and coordinate sales promotions.
Mid-level retail managers, often called store managers, have broader responsibilities than supervisory level managers. Mid-level managers set sales goals, create budgets, develop procedures to direct and improve customer services, define department managers' responsibilities, and delegate authority within their store. Store managers coordinate different departments so that sales promotions and procedures are consistent throughout the store. They also may open and close the store, and may even make bank deposits. Some coordinate other activities within the store, such as safety and security, maintenance and cleaning, and meetings, seminars, and programs for employees. Store managers usually are responsible for implementation and compliance with corporate programs and rules within the store. They plan merchandise demonstrations and coordinate marketing events to promote products. They may implement employee incentive programs, including bonuses and awards, that increase motivation and morale and inspire good customer service. Store managers may review purchasing and sales records and meet with department heads to determine when to restock inventory or announce price-slashing sales. Store managers meet frequently with top management and other store employees to keep the lines of communication open.
Senior level retail managers, commonly known as district, area, or regional managers in large chains and franchises, are covered in the Handbook statement on general managers and top executives. District managers coordinate sales and distribution operations for a number of stores and franchises in a specific area or district of the country, and choose the wholesalers that can supply the highest quality goods to the stores. They define store managers' responsibilities and regularly meet with them to make sure that stores attain sales and profit goals, that merchandising and pricing techniques are up to date and comply with company procedures, and that the store and specific departments are clean and follow company guidelines. In order to evaluate the productivity of each individual store, district managers make on-site visits, and often report back to the top executive of the company.
Customer service and satisfaction are important duties of retail managers.
Most retail managers have offices within the store itself, while senior level managers may have offices at corporate headquarters. Though much of their time is spent in the office completing merchandise orders or arranging work schedules, for example, a large portion of a retail manager's time is spent on the sales floor of the store.
Work hours vary greatly among retail establishments. The work schedule of retail managers usually depends on consumers' needs. Most retail managers work around 40 hours a week, but longer hours are common, especially during holidays, busy shopping hours and seasons, sales, and store inventory. Retail managers are expected to work evenings and weekends, but usually are compensated by getting a weekday off. Hours can change weekly, and managers sometimes may have to report to work on short notice, especially when many employees are absent. Independent owners can set their own schedules, but hours must be convenient to their customers.
Mid- and senior level managers' jobs often require substantial travel. District managers travel frequently between national headquarters and regional and local store branches. Store managers travel to vendors' offices and trade shows to order goods. Meetings and conferences sponsored by industries, vendors, and associations occur regularly, and provide opportunities to meet with peers and keep abreast of trends in consumer preferences.
Managers who work in retail trade held about 1,070,000 wage and salary jobs in 1992. About 175,000 primarily owners of small retail establishments were self-employed. Managers are found in every retail trade industry eating and drinking places, grocery stores, department stores, clothing and shoe stores, automotive dealers, and furniture stores are among the largest industries. The accompanying table shows the distribution of wage and salary employment by industry.
Table 1. Distribution of managers, selected retail establishments, 1992
Total (percent)..................................................100.0
Eating and drinking places....................................... 34.7
General merchandise stores....................................... 9.3
Grocery stores................................................... 9.0
Department stores................................................ 7.6
Miscellaneous shopping goods stores.............................. 6.0
Motor vehicle dealers............................................ 5.9
Building material and garden supplies............................ 5.7
Clothing and accessories......................................... 4.3
Furniture and home furnishings stores............................ 3.8
Appliance, radio, TV, and music stores........................... 3.1
Auto and home supply stores...................................... 2.3
Gasoline service stations........................................ 2.2
Food stores, other than grocery stores........................... 1.6
Shoe stores...................................................... 1.2
Other............................................................ 3.3
SOURCE: Bureau of Labor Statistics
Knowledge of management principles and practices is the essential requirement for a management position in retail trade, and such knowledge usually is acquired through work experience. Most managers begin their careers on the sales floor as a sales clerk, cashier, customer service worker, or a food and beverage service worker, for example. In these positions they learn merchandising, customer service, and the basic policies and procedures of the store.
Those individuals who display leadership skills, self-confidence, motivation, and decisiveness become candidates for promotion to assistant manager or department manager, depending on the size and structure of the store. In many retail establishments, managers are promoted from within the company. In small retail establishments, where the number of positions is limited, advancement to a higher management position may come slowly. Larger establishments have more extensive career ladder programs and offer managers the opportunity to transfer to another store in the chain or to the central office if an opening occurs. Promotion may occur more quickly in larger establishments, but relocation every several years may be necessary for advancement. Purchasers and buyers (discussed elsewhere in the Handbook), who purchase merchandise directly from distributors for resale, is one career step within the central office. Other positions within the central office include marketing, advertising, and public relations managers, who coordinate marketing plans, monitor sales, and propose advertisments and promotions, and purchasing agents and managers, who purchase goods and supplies for their organization. (Both occupations are covered in other Handbook statements.)
Training varies from store to store. Many national chains have formal training programs for management trainees, which include both classroom and in-store training. Training may last from 1 week to 1 year or more, as many retail organizations require their trainees to gain experience during all shopping seasons. Other retail organizations may not have any formal training program at all.
Classroom training may include such topics as interviewing and customer service skills, and employee and inventory management and scheduling. Management trainees may be placed in one specific department while training on the job, or they may be rotated among several departments to gather a well-rounded knowledge of the store's operation. Training programs in franchises generally are extensive, covering all functions of the operation, including promotion, marketing, management, finance, purchasing, product preparation, human resource management, and compensation. College graduates usually directly enter management training programs.
The educational background of managers in retail trade varies widely. A high school diploma often is required, and a postsecondary degree is preferred for individuals who wish to advance in the profession. Though generally not required, postsecondary education is a sign of motivation and maturity, increasingly important qualities as the individual is promoted to more responsible positions. Regardless of the education received, business courses including accounting, administration, marketing, management, and sales, as well as courses in psychology, sociology, and communication, are helpful. Managers also must be computer literate as cash registers and inventory control systems become more computerized.
Most managers who have postsecondary education hold an associate or a bachelor's degree in liberal arts, social science, business, or management. Many postsecondary students participate in internship programs to gain retail experience. Such programs usually are planned between individual schools and retail firms.
Many managers who have worked in the retail industry for a long time open their own store. However, retail trade is highly competitive, and although many independent retail owners succeed, some fail to cover expenses and eventually go out of business. Retail owners need good business sense and strong customer service and public relations skills.
Retail managers must get along with all kinds of people. They need initiative, self-discipline, and the ability to organize and direct the work of others. Patience and a mild temperament are necessary when dealing with rude, angry, or demanding customers. Good judgment and decisiveness are necessary when reacting to competition from other stores. Retail managers also must be able to motivate subordinates and communicate clearly and persuasively with customers and other managers.
Employment of salaried retail managers is expected to grow about as fast as the average for all occupations through the year 2005. Retail establishments are growing in number and size. However, similar to other industries, corporate downsizing and restructuring may temper demand for retail managers. In the face of intense competition, many firms are improving operating efficiency by using computerized registers and inventory control systems, also slowing growth of new retail management jobs.
Because retail managers comprise a large occupation, most job openings are expected to occur as experienced managers retire or stop working for other reasons. Many retail managers transfer to other occupations because of high pressure, long hours, and inability to meet sales quotas. Jobs in retail management vary greatly in earnings, weekly hours, number of employees supervised, and type of goods and services. Since most jobs in retail management do not require education beyond high school, competition is expected for jobs with the most attractive earnings and working conditions. Candidates who have retail experience will have the best opportunities.
Projected employment growth of retail managers reflects projected industry growth. For example, faster than average growth is expected in appliance, radio, television, and music stores, while average growth is expected in miscellaneous shopping goods stores. On the other hand, slower than average growth is expected in department stores, while employment of managers is expected to decline in gasoline service stations.
Salaries of retail managers vary substantially, depending upon the level of responsibility, length of service, and type, size, and location of the firm.
According to a survey sponsored by the Association of Convenience Stores, the median salary for assistant store managers ranged between $13,100 and $14,300 a year in 1992, depending on the size of the organization. Store managers earned between $18,400 and $23,700; district managers, $29,800 and $62,700; and regional managers, $47,000 and $128,500.
Compensation systems vary by type of establishment and merchandise sold. Most managers receive a commission or a combination of salary and commission. Under a commission system, retail managers receive a percentage of department or store sales. These systems offer managers the opportunity to significantly increase their earnings, but they may find that their earnings depend on their ability to sell their product and the condition of the economy. Those managers who sell large amounts of merchandise often are rewarded with bonuses and awards, and receive recognition throughout the store or chain.
Retail managers receive typical benefits and, in some cases, stock options. In addition, retail managers generally are able to buy their store's merchandise at a discount, often from 10 to 40 percent below regular prices. In some cases, this privilege is extended to the employee's family as well.
Retail managers serve customers, supervise workers, and direct and coordinate the operations of an establishment whose aim is to maximize profits and satisfy the customer. Others with similar responsibilities include managers in wholesale trade, hotels, banks, hospitals, law firms, and a wide range of other industries.
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Reprinted with Permission of U. S. Department of Labor