Tag Archive: market conditions


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By Russell Adams, AdMore Recruitment– Specialists in Retail and Hospitality Recruitment, Search & Selection, Talent Management and Career Development.

In a market where organisations are increasing their proportion of direct hires, do you still need to be talking to recruiters and what are they actually doing for you?  Are they really adding any value and what are they doing that you couldn’t do yourself? Indeed with LinkedIn it is now easier than ever before to be found by organisations looking to hire. So are recruiters really adding any value? The answer to that question will definitely depend on who you are talking to. Sadly the industry is lightly regulated and with no formal qualifications it is very easy for poorly trained individuals to operate without much scrutiny or redress. As we are all aware, the market is still tight. With strong competition for most roles it is likely that you will need to engage the services of recruiters in order to try and access the best opportunities in the market.

So what should a good recruiter be doing for you?

Career Advice

A specialist recruiter should be able to give expert career advice and both challenge and assist you in your career goals and objectives. They should be highly knowledgeable in your field and very well connected.  Your recruiter should be a career partner and not just an agent that will place you in a role.

Recruiters can and should provide impartial career advice. When paid commission you need to appreciate that some may have a short term attitude and advise what is best for them and not for you as the candidate. However, the best recruiters will take a look term approach, appreciate that people will remember great advice and certainly never forget bad advice. Although in the short term they may lose out on a fee, longer term if they do the right thing then you are much more likely to engage them when you are looking to recruit. So look out for the signs that they are thinking long term.

Recruiters can if they are willing provide advice across a range of areas including advice on CV’s and Interviewing. They typically do not change for these services but do it as a way of adding more value to the candidates. Again they are likely to only provide in depth advice to those individuals who they have built a relationship with.

Job Search

In addition to some of the added value areas, fundamentally you want your recruiter to give you access to the best jobs in the market. So, do plenty of research and ask plenty of questions; what roles are they recruiting? Who are their key clients? Are they recruiting the types of roles you are interested in? The competition out there is fierce and through building a strong relationship with key recruiters in your sector you can try and ensure you gain access to these roles. A good recruiter should always call you back. In the current market, recruiters are incredibly busy, there are large number of candidates on the market chasing relatively fewer roles, however if you agree up front how to communicate and how frequently then you should be able to find a way that works for both parties.

 Process Management

A good recruiter should “coach” you through the recruitment process.  They should be using their in depth knowledge of the client and the individuals within it to guide and advise you on how to position yourself. They should be able to give you a strong insight into the culture and how you will fit.  The are also likely to get in depth feedback from the client after each stage so make sure they are sharing this information with you, so you can understand what you may need to do more or less of.  In fact a really good recruiter will always think long term. The better ones will coach you through a process even when they aren’t representing you but it is with a client they know. They will appreciate the long term benefits of doing this and the potential for the future.

 Offer Negotiation

Whilst there are a multitude of reasons for moving jobs, increasing your salary and benefits is often an important aspect.  Your recruiter should be instrumental in negotiating the right salary for you.  They should know the client well and will have a real feel for what the client may be willing to pay for someone with your skill set.  But make sure they are clear about your parameters because as much as you want to receive the best offer you also don’t want to put yourself in a situation where you are jeopardising a potential offer because the recruiter is demanding an unachievable  salary on your behalf. Also make sure you understand the full package. The benefits on offer may vary considerably from your current role and other roles you are considering and it is wise to look at the package as a whole. This will both influence your thoughts around basic salary but also may give you some leverage. Make sure you have this information early in the process. Like any negotiation the Recruiter will be aiming to find middle ground that is acceptable to both you and the client. It is ok to push but get a feel for where those boundaries lie.

Post Placement

A good recruiter won’t just place you and collect their fee, they will support you through your notice period and then though your induction into the business. They should provide you with an insight into the key players in the business you are joining, the culture and advice on how to integrate into the business. They should keep in touch and ensure that your induction runs smoothly, feeding back to the client where appropriate.

Conclusion 

Identifying and then building a relationship with the right recruiters will be critical if you are determined to make the best career move possible.

So how can you ensure your recruiter is doing all these things for you? Firstly please choose wisely. It is best to get recommendations and check their credentials.

Secondly to gain this level of advice, support and opportunity you need to invest time in building a relationship with the recruiter. This is easier said than done when working in a demanding and consuming role, so select a small number of well connected recruiters. For some additional advice on job hunting please read our recent blogs Looking for a job in 2013and How to avoid joining the wrong business.

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By Jez Styles, AdMore Recruitment– Specialists in Retail and Hospitality Recruitment, Search & Selection, Talent Management and Career Development. 

The most challenging, and by it’s very virtue interesting recruitment is often when you are resourcing for an employer whose brand does not quite match up with candidate perceptions. This can work two ways. A business may have a great employer brand but in truth be a difficult to place to work and develop a career. Conversely, there are many businesses that have a poor employer brand but are actually a great place to work. This mismatch often arises for two key reasons; firstly businesses change – a company may have had a high staff turnover previously but due to a change of CEO/HRD the underlying problems have been removed. The second reason is that many people confuse the customer brand with the employer brand. Yum! Brands (The parent company of KFC) are a great case in point. Potential employees think ‘fried chicken?’ but do not necessarily know the fantastic, employee- focused career opportunities they offer.

So, what can you do to educate candidates?

I was recently invited to a Retail networking event at Harrods. I’ll declare my hand early; I used to work in Harrods. It was an amazing experience and I can honestly say that it was the most theatrical and exciting place to ‘retail.’ However, it would seem that many candidates do not see Harrods as being an employer of choice. Following a period of change at Harrods (click here for more information) the Resourcing team have decided that now is the time to win hearts and minds.

The event was by invitation only (thanks to Linda Treen for the invitation!) and was aimed at attracting the top talent from retail that had thus far declined to attend a formal interview. It was typically Harrods – held in the Georgian restaurant where we were offered some beautifully crafted bacon rolls served with coffee and tea. The Retail Director, Paul Thomas, kicked off the day with introductions. This was perhaps the most powerful part of the day. There were 8 Harrods employees present; they came from Asda, Zara, Tesco and a collection of large and small retailers. Not the typical luxury backgrounds one might expect. They also had interesting career paths; it would seem that the path from Operations to the Support functions was well travelled. I guess that is the benefit of having the core of your business and its supporting Head office within a few miles of each other.

Following the introductions, a chap by the name of George Hammer talked about his own experience of setting up the Urban Retreat salon concession in Harrods. George is a classic entrepreneur and was quick to cut to the chase. Harrods is not an easy place to work quite simply because the standards and expectations are so high. As he put it, if you want to work somewhere spectacular you will have to take a risk. This is an interesting point, as this is absolutely about confidence. If you are confident in your ability then why would you not be successful? His most memorable quote being; “be exceptional, do not be average.” George is clearly an extremely successful entrepreneur, he was the founder of Aveda amongst many other concerns, however he seemed to connect with the audience and many of the candidates present were clearly impressed by his honesty and his passion for Harrods.

Paul Thomas went on to talk about his own career path (Asda – Saturday boy to Store Manager, Sainsburys, Harrods Food Hall) and then fielded some questions. Paul was candid about his own decision to join Harrods with the admission of a wobble during his notice period prior to joining – had he made the right decision?  He was keen to tackle the negative perceptions within the room. A few candidates opened up and to Paul’s credit he dealt with these in a way that encouraged others to raise their own concerns.  He talked about the operational roles being narrower, yet deeper, than normal. He discussed perceptions around a more mature workforce and the ‘stuffy’ stereotypes. He noted that in the four years since they have started measuring employee engagement, they have seen a marked improvement in scores. This willingness to meet these questions head on certainly engaged the audience.

I noted with interest the number of candidates that were keen to formally register their interest in Harrods following some further informal conversations. I suspect that the Resourcing team were slightly surprised to get such an immediate result. Jenny Parry, Head of Resourcing, told me that she was primarily hoping to get the message out there that Harrods is evolving.  Judging by the reaction from the candidates attending, I think they certainly achieved this. It would be interesting to know what other retailers are doing to actively manage their employer brand in what is proving to be a period of intense change in the retail industry, comments below please!

Join our group on LinkedIn for further updates and discussions.

By Jez Styles, AdMore Recruitment– Specialists in Retail and Hospitality Recruitment, Search & Selection, Talent Management and Career Development.

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Russell Adams – Director, AdMore Recruitment

Over the last few weeks much has been written and discussed about the future of Britain’s High Streets and retail generally. It has dominated the news channels, the papers and even Question Time.  Clearly the sad plight of Comet, Jessops and HMV has crystalized in many people’s mind the changing retail landscape and the headwinds many retailers face. Such a period of publicity and scrutiny form the wider public has not been this intense since the demise of Woolworths. Many opinions and predictions have been voiced over the last couple of weeks but in contrast to some reports this is a highly complex issue, driven and influenced by a multitude of factors with no easy answers for retailers, the government or indeed landlords.

Many people point simply to the growth of online retailing over the last decade and the changing patterns of consumers as the major cause and decline of the high street. Without a doubt this has been a significant factor and pure online businesses with a lower cost base have been able to undercut the traditional Bricks and Mortar retailers.  However, this issue has not happened overnight and businesses like Amazon haven’t suddenly appeared.  I do think that this argument at times is still overstated. Firstly, according to some reports, approximately 90% of products are still purchased in a physical retail environment, with, according to the British Retail Consortium 43% being spent on the high street. No one questions that this figure will decrease over time but it still doesn’t justify the statement that the High Street is dead. Secondly, everyone acknowledges that much of the future is in multi-channel or Omni-channel and where businesses have got it right, such as John Lewis, it has delivered fantastic results. Further innovations such as Click and Collect are needed to respond to the change in customers’ behaviours.  Looking back over the last few weeks a number of businesses have shown the benefit of this multi-channel approach with much improved results from the likes of Argos.

Another suggested factor affecting the failing High Street is the poor management of a number of retail businesses. With the businesses that have entered administration, many fingers have been pointed but I personally would like to defend these executives. These were often well run businesses with Boards made up of experienced and successful retailers, who in many circumstances have joined the business to try and support its turnaround. I do wonder if it was more to do with whether shareholders were prepared to forego short term gains to ensure long term success. As has been seen, being a quoted company can be challenging when a major change in strategic direction is required.

There are also certainly challenging times ahead for landlords. Indeed one in ten shops on the High Street currently lay empty with demand focused on the large and successful shopping centres.  While this shift is not new, as multiple retailers look to reduce their store footprints this will only lead to less demand on the high street and a greater need to be innovative with property uses.  Many have called for tighter planning regulations to prevent more large shopping malls being built but this really isn’t a long term strategy. Fundamentally customers want to shop in a convenient and enjoyable way and we must give people a reason to visit the High Street, whether that be better parking or a better range of local products etc.  In the short term there is little hope that the leisure and restaurant sectors will snap up some of these units as they themselves struggle against the economic headwinds causing more people to stay at home. Much debate has been made around what should be done however we are seeing some form of renaissance for the independent retailers. It is difficult to argue that there is just overcapacity on some High Streets and thought must be given as to how property is reclassified and used. Going forward it is unlikely that retail demand will match the supply and it may be that residential use and the reshaping of the high street is inevitable.

Clearly the economic slump has been a major factor affecting the high street. After 5 years of negative or little growth, GDP is still 3% below pre-recession levels. I do believe though that in some cases it has just sped up the demise of businesses who faced structural changes to their market. HMV, Jessops and indeed Woolworths are all businesses described as “walking dead” or “Zombie”. Many of the businesses may have survived a little longer in more buoyant times but would still have inevitably faced a bleak future because of the changes to the marketplace and sectors in which they operated. Retail history is littered with consolidation and administrations as the sector rapidly evolves and develops. As always there are winners and losers and the ability to anticipate and adapt to the changing needs is essential in delivering long term success.

Many people have looked towards the government to take more decisive action, whether that be to cut rates or to support Portas or other initiatives, however no action will ultimately change the underlying trends and headwinds for the sector.  There are no easy solutions. Portas and other initiatives are important but change needs to happen and it will be painful.

The last few years have been extremely challenging for the High Street and as times became tougher, costs have been cut which has reduced the level of service and the attractiveness of the environment giving consumers less reason to visit physical locations. Although not the only solution, service, product knowledge and in-store theatre will provide a greater incentive for people to shop both physical stores and the High Street in general. Businesses need to invest where possible to create and deliver this environment. I wish I had another example but I am afraid like many others I cannot help but admire Apple. Unlike most other businesses they have been investing in their store portfolio and can boast some very impressive sales per square foot. I do appreciate part of their success is the desirability of their products but to be fair they can easily be purchased on-line like so many other products. The reason for their success from a store perspective is they have successfully created a retail environment that enhances the purchase experience but perhaps critically, the customer service and product knowledge offers real value to the customer and gives a genuine reason to visit the store.

There are certainly many challenges ahead but I am not sure it is as apocalyptic as some suggest – there is a future and it is about adapting to that future to meet the needs of changing consumer behavior. Many retailers need to adjust their store portfolios and this will cause short term pain. High Streets are and will continue to be an important part of the retail mix but in a different format to what we see today.  People still love to shop, people love to see and feel product in certain categories but they need to be able to shop in a convenient, enjoyable and engaging way.

Russell Adams

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By Jez Styles, AdMore Recruitment– Specialists in Retail and Hospitality Recruitment, Search & Selection, Talent Management and Career Development.

You will have read this morning that HMV has entered in to administration with the potential loss of over 4000 jobs. This is deeply sad and on the back of the collapse of Comet and Jessops in recent weeks it is perhaps the worst period in retail since the demise of Woolworths. Much of the commentary on HMV would suggest this is a result of structural failure, that the model simply has no place in modern retail. In my view this is rather simplistic. The reality is that HMV has faced a set of unique (in their combination and complexity) challenges that have served to paralyse the business over a period when change was crucial.

HMV’s demise can be traced back to the original stock market flotation in 2002. There is a conflicting argument as the reality is that the funds generated from the float served to fuel HMV’s expansion and competitor acquisitions. This expansion allowed HMV to build the best economies of scale in their market and to be the last man standing (Our Price, Virgin/Zavvi, Woolworths, Silverscreen, Sanity, Borders, MVC…the list goes on). However, being a PLC also presented the Management team with significant barriers to future proofing the business.

At the same time HMV was floating in 2002, BT had just 136,000 Broadband subscribers and additionally Apple’s IPOD had recently launched in October 2001. There were some predictions about how these two products would affect the market but in truth very few people predicted just how quickly they would be adopted. Broadband offered consumers an opportunity to not only browse products in a different way but also to consume them differently. Many critics of HMV have suggested that they should have launched a download service earlier however in reality there was stiff resistance within the wider industry. The Wild West days of the noughties and the plethora of pirate websites where you could download unlimited amounts of content for free initially pushed music and film companies to further retrench their position (on providing official channels). By the time they had realised the tide was against them, Apple amongst others had taken up the mantle (Apple were not really associated with music/film consumption before 2002). HMV have been playing catch up ever since and the brand had been severely compromised as a result.

The pirate websites also revealed an unsavoury insight in to our own cultural acceptance and views on theft. Unfortunately many people did not see illegal downloading and CD/DVD pirating as morally wrong. How often did you see individuals selling pirated product, unchallenged in pubs or street corners? I suspect this cultural acceptance is entrenched in the mix tapes of the 80’s and the romanticism that this still evokes. This created two major issues for entertainment retailers – lost revenue and erosion of what consumers were prepared to pay legally.

In 2002 it was not uncommon to pay £13.99/£19.99 for a Chart album or film and much more for older back-catalogue products. Today you will often see the same products on sale for £7.99/£13.99 respectively, or less. This is quite a dramatic price deflation when you consider that over the same period a loaf of bread (800g) has risen from an average of 60p to £1.30 today. The price deflation was deepened by competitors running loss leaders in a bid to survive, the market entry of the supermarkets and finally internet shopping.

During the same period of price deflation there has been a very real increase in costs. Payroll has continued to rise and unfortunately HMV has an expensive supply chain model. The cost of getting products on the shelves is much more expensive than it is for a Supermarket with employment-as-a- percentage-of- sales being close to double that of the Supermarkets. A typical HMV store has significantly more SCUs (product lines) than virtually any other similarly sized retailer. Each SCU has to be processed and put on shelves individually, a time consuming exercise but an essential one if you want a wide selection. The only way to have reduced this cost would have been to move this back-catalogue purely on-line.

This however was also extremely problematic. In the early days online retailers were making very little money. Amazon ran at a loss for many years…without paying much tax. HMV were in a tricky situation on two counts.  Moving their online business off-shore would attract negative press, a consumer backlash and a legal minefield. This coupled with a reluctance to under-cut the physical retail pricing model meant that the website failed to gain momentum. By the time that ‘perceived’ consumer sentiment had begun to soften, HMV had fallen too far behind. This is clearly a huge mistake but to some extent an understandable one.

The stock market- fuelled expansion brought further issues. Growth was fundamentally underpinned by store expansion with over 100 stores opened in a 5 year period. The dynamics of the market dictated that expensive leases were signed and for long periods.

The way in which we consume entertainment has changed dramatically over the last 5 years (Permira bid over £800 million for the business in 2008). I myself use SKY+ to record TV series to watch at a more convenient time while I download films directly via Apple TV. I download and play the occasional game on my smart-phone and stream music via Spotify. I still buy CDs, I love browsing and physically selecting products but not in the same quantity that I did in the past (having children hasn’t helped to be honest). The market has also changed significantly. The music industry is continuing to move towards singles rather than album releases while Hollywood is not producing blockbuster films in the same quantity that they did prior to the recession.

When I visit an HMV store I get the sense that they have lost touch with who their core customers are and could be by trying to appeal to everyone. They desperately needed to radically overhaul the product offering. They have made some inroads into the technology market but this is a relatively low margin arena and is not enough to sustain stores of their size (neither big enough nor small enough). The appetite to pursue this further has not been there and this has been driven by a Management team with either limited vision or who are constrained by the PLC ownership model. Had HMV been owned by a rich benefactor I genuinely believe the brand was salvageable. I don’t think there is a place for a specialist CD/DVD retailer for all the reasons stated but there is a place for a retailer that celebrates popular culture. A combination of fashion, technology and yes, some quirkily packaged entertainment products. Had some brave decision been made earlier HMV might not be in the position it is today.

The truth is that HMV has suffered a long and agonising death, by a thousand cuts. I can’t think of another retail market that has faced the same set of challenges and in such a short space of time. I sincerely hope that someone with a passion for the brand, and some spare cash, comes forward to save what is a truly iconic institution. Just as I was finishing this blog I received the following email from a contact that I suspect sums up what many feel about this sad news:

“It really is – I’ve just been reminiscing with my boss – things like; the first tape/LP we ever bought, all the presents we bought and were given from HMV, the cool posters i used to spend hours leafing through. Of all the casualties of the current retail market, this has hit me the hardest.”

On a final note, a by-product of HMV and the overall physical entertainment market’s demise will be an increase in costs elsewhere. Expect your broadband cost to continue to rise (if you can only download your music you are a captive customer) and your satellite TV package costs to continue to rise…

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Jez Styles, AdMore Recruitment– Specialists in Retail and Hospitality Recruitment, Search & Selection, Talent Management and Career Development.

 

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