I do not always head to the opening of a new retail store. Indeed, new store openings are comparatively rare in 2021, against a backdrop of retail outlet closures, reflecting the move to online purchases, and pandemic restrictions on movement.
But this one caught my eye – a new Marks & Spencer on a town close by, Leamington Spa, where they opened a new food hall last week.
First impressions were positive – this did not look like a Marks & Spencer, but to me looked like the Wholefoods Supermarket I usually head for in central London. The lighting, layout, and focus on fresh & supposedly healthy eating seemed quite similar – but different for M&S. The aisles are marked out for ‘global foods’ (no mention of canned goods, even though they sell those too), and the cheese was set out ‘deli style’ not in a chilled cabinet of old.
Why a new store? Firstly, there are some in the area who do not regard this as a Good Thing, mainly because it replaces two existing stores in Leamington & Warwick. Both of these are in town centres: the new store is on a retail park just outside the centre. It will be extended in October when the property next door – a former Debenhams – becomes M&S clothing & home store. But the location and style fit with the M&S strategy of larger out of town stores, easy to park near, and better placed for ‘click & collect style shopping. So this is evidence of the M&S strategy in practice.
Having visited the new store, we popped into the Sainsbury’s nearby straight afterwards which made the contrast quite starkly: it felt like travelling back in time 10 or 20 years. Maybe it should?
Decades ago when I started my banking career, the branch was open from 9.30am -3.30pm. This store is open 8am-9pm (shorter on Sunday) so is positioned as a supermarket, and towards the premium end of the market.
These hours are not unusual in this sector, yet I wonder if there is a connection between working hours and recruitment? M&S seem fully staffed, but recruitment problems are well documented in sectors which do not offer working from home (WFH), or so much in terms of flexibility. Think about the situation beyond retail – hospitality, logistics, entertainment, and service sectors such as call centres.
The causes of recruitment issues seem to be a combination of long-standing anti-social hours in the logistics sector, a dependence on immigration for labour, and a change in rules post Brexit which limit immigration to ‘skilled’ roles.
I am pondering another cause: pandemic reflection. The enforcement of WFH and furloughing staff has enabled many people to consider what they value, and reflect and what they want, including how they want to work. Data on this I find hard to come by, but such reflections have been a feature of my conversations with other CIPD (Chartered Institute of Personnel & Development – the HR professional body) members over the last few months.
I will confess I have it easy in terms of flexibility and WFH: my own office and I choose my hours, as I am my boss.
In retail and other sectors, you need to be there – somewhere other than home – and at times to match customer demand.
Could it be that people are now valuing control over their time more highly, and are less willing to work evenings and weekends for the pay rates on offer?
I notice too that one response from businesses is not to increase pay – but to consider reducing it for those who can WFH. Admittedly many of the examples I have seen of this come from the US, where there can be a greater differential in pay between states than even the UK situation where historically working in London would be paid a ‘weighting’ (i.e. more – partly to compensate for the cost and hassle of commuting).
My conclusions:
- This is not the conclusion, but the middle of a working revolution. Lots of talk about flexibility, but that flexibility does not stretch to every working situation.
- Directly or indirectly, this will affect your business. Whether you are in a service, retail, manufacturing, public or third sector, the labour market right now means people have more choice about which role they will take.
- Your offer to employees must now be much more than ‘a fair day’s work for a fair day’s pay’. What is the nature of the work, what flexibility can you offer, how can you ensure the work has a purpose to it?
Consider that when you next buy something. If you buy in a store, someone will have put product in front of you and maybe even served you. If you buy online, then somewhere in a warehouse by a motorway, a computer will be telling someone to fetch it, check it or pack it.
Whatever time of day or night you buy it.
Buzzwords of the Week – Quick Ratio
Definition – A ratio to measure liquidity – how easily you (or a customer) can pay your/their bills. Calculated by adding cash to accounts receivable (Debtors) and dividing by current liabilities. Usual desired outcome is a 1:1 ratio. Note this excludes stock which is regarded as being less liquid. Also known as the Acid Test Ratio.
Alternate View – Very popular with Credit reports, which sometimes also look at cash ratio – the quick ratio without accounts receivable. The debate about whether 1:1 is ideal depends on whether your suppliers like it that way when they look at your balance sheet – some will understand the desire to look financially efficient (hold less cash). Could also be seen as an indicator of you own financial risk appetite – do you like to be seen as ‘liquid’?
Coming Up…
An Exciting Opportunity to Accelerate Your New Business Growth
The Challenge for Start Ups
- This year has seen a considerable number of people starting their own businesses having seen how working for someone else does not work for them.
- In the past, many of these start-ups would begin with a product or service, start selling on an online platform like eBay, and find a way to get by.
- These start up new businesses would find themselves at the whim of bigger businesses and competitors with more marketing muscle. But spending their time working ‘in’ the business would mean they did not look at the big picture and consider their desired outcomes, and direction. A huge number fail within 12 months.
- This does not have to be the case.
- Using everyday technology matched with the human skills to create services people want and products you can help people buy, provides a more realistic chance of success in the 2020s.
Getting Better: Your Only Option
- Going self-employed remains a risk: so does staying employed.
- Ultimately the success of any start up business depends on the knowledge, skills, attitudes, and habits of the people involved: the opportunities, challenges and tools are available to all.
- Many ‘free’ support services are available, yet they may lack the experience of seasoned business people familiar with the challenges:
- The cost of starting up without the direction and skills you need may be considerable: many will give up.
- It does not have to be like that…
InGlued Start Up Academy
- You can Fastrack your start up success by developing and applying the skills successful business people use.
- The Academy is custom designed based on our experience as business people and our experience in training and coaching start-ups to survive and grow.
- This training, coaching support and development is now available from Rob and Phil working in partnership with you.
- Inglued is a collaborative programme from Phil Ingle and Glued’s Rob Harrison
August 28th, 2021, 11:00 UK – Explanatory Webinar
- Register in advance for this meeting:
- https://www.eventbrite.co.uk/e/introduction-to-the-inglued-start-up-academy-registration-165724762225
- After registering, you will receive a confirmation email containing information about joining the meeting.
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