Elearning! Fall 2007 - (Page 24) Out with the Old, In with the New For Trendy Saks EXPENSIVE, CONVENTIONAL TRAINING GETS THE BOOT AT NEW YORK’S FASHION GIANT BY LINDA GALLOWAY Several years ago, Saks, Inc. — facing a pending shortage of up-and-coming buyers and merchandise managers — embarked on an ambitious training initiative for its merchandise division. Realistically, recruiting could fill only a percentage of the budgeted positions. A significant number of positions needed to be filled from within, which meant building “bench strength” for the fashion giant, owner of 54 Saks Fifth Avenue stores, 49 Saks Off 5th stores and saks.com. The company also operates Club Libby Lu specialty stores. Good buyers are crucial to a retailer’s success, and they are demanding jobs. The profile of a buyer for fashion retailers is a study in contrasts: highly creative and innovative to help spot fashion trends before they happen, but also highly analytical and business-savvy, with good math and negotiation skills. If clothes don’t sell quickly, prices must be marked down and the retailer loses revenue. Among other things, good buyers know what items are likely to sell and the quantities they should order to maximize sales. They’re also successful at negotiating favorable prices from vendors. The Saks training program, rolled out over 2005 and 2006, won an award for initiative excellence in the Bersin & Associates 2006 Learning Leaders program. OUT WITH CONVENTIONAL Until 2004, most training dollars at Saks were spent on conventional classroom and on-the-job training. While effective, such programs were costly, labor intensive, and limited in terms of numbers of learners. Moreover, most emphasis was on new-hire and management training rather than training for ongoing career development. Like many companies, the company’s training budget was limited and divided among several operating units. To address the challenges of merchandising training, Saks’s training and development organization knew it had to think “outside the box” in terms of budget, focus, approach and delivery. The company formed a unique partnership with the National Retail Federation, 24 Fall 2007 Elearning! http://saks.com
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