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From November 2007
By Walter F.
Loeb
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There is a real need for vocal leadership in the
retail industry, leadership by dynamic,
innovative executives who will speak out on
issues or events to reflect the collective
industry position.
Operating chief executives must be heard on
specifics, and, I believe, that only they can
create excitement when they speak out. They are
informed and often have solutions. Here are some
issues that are important to the industry and
consumers:
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• Fashion excitement news and trends
• The Greening of America – how to preserve our
resources
• The use of energy-efficient products
• How to welcome visitors from other cities and
other countries
• How free trade agreements help consumers save
money
• Health care in stores
• Sourcing of merchandise
• Innovation in retail stores
• Store safety and security
• Technological advances
Look at the bigger picture
Most retailers speak only about their companies,
their successes and their outlook for sales and
earnings. However, they do not talk as
frequently about the bigger industry picture.
For instance, department stores are undergoing
massive worldwide consolidation: In the United
States, Federated Department Stores and May
Department Stores merged to form the $27 billion
Macy’s that is now in almost every state.
Similarly, in Canada, The Hudson Bay Co. and
Sears are the only survivors. There is only one
department store company in Spain (El Corte
Ingles); in Germany, Karstadt and Kaufhof are
struggling for identity and survival. It’s a
similar story in Italy, Switzerland, Denmark and
Holland; in fact, it is only in Paris and London
where multiple department stores are surviving.
Another issue is the shift of sourcing of
merchandise and how it benefits consumers
through better quality and creativity. One also
has to look at the myriad specialty retailers –
from booksellers and pharmacies to fashion
specialists and office products superstores.
None of these segments has anyone that speaks
out effectively for their portion of the
industry.
Of course, they would need someone who could
look beyond their individual company’s
objectives. How wonderful it would be if someone
would create interest in a writing contest
sponsored by all booksellers, or developed
fashion clinics in which all mall stores could
participate.
Industry innovation
I wonder whether recent federal regulations
scared everyone (and their lawyers) from
speaking up on behalf of the excitement and
creativity of this industry. Recently,
Starbucks’ Howard Schultz and Safeway’s Steve
Burd spoke about the need for more intensive
health care and, in recent years, Limited’s Les
Wexner and Gap’s Donald Fisher championed
international trade.
Wal-Mart’s Lee Scott has spoken about the need
for greater care for the environment. However,
none had the force and immediacy of Stanley
Marcus, Alan Questrom or Sam Walton or the
impact of Lord & Taylor’s Dorothy Shaver in her
day.
Innovation for retailers should not only come
through technology, but through new stores and
new ideas. Recently I heard that Kroger’s
management has developed shared job assignments
– shared time by two associates who will do the
single assignments and have more time with their
families. That is a great idea that might
encourage more people to work in an industry
whose hours are detrimental for young people who
want to have a family life.
Retailing needs leaders who will speak up. I am
wondering whether the next wave of leadership
will be more open and willing to face major
issues – or intimidated by economic and
political environment. |
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