Stores Magazine - November 2007 - (Page 106) CONSIDER THIS / LOEB RETAIL LETTER Copyright 2007 by Loeb Associates Inc. Used by permission. Time to Speak Up BY WALTER LOEB 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: • 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 yond 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, LimitWalter F. Loeb is a New Yorked’s Les Wexner and Gap’s Donald Fisher based consultant and member championed international trade. of the NRF board of directors Wal-Mart’s Lee Scott has spoken about the whose newsletter is published need for greater care for the environment. monthly in STORES. However, none had the force and immediacy of Stanley Marcus, Alan Questrom or Sam Look at the bigger picture Walton or the impact of Lord & Taylor’s Dorothy Shaver in Most retailers speak only about their companies, their her day. successes and their outlook for sales and earnings. HowInnovation for retailers should not only come through ever, they do not talk as frequently about the bigger industechnology, but through new stores and new ideas. Retry picture. For instance, department stores are undergoing cently I heard that Kroger’s management has developed 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 Innovation for retailers should not only every state. come through technology, but through new Similarly, in Canada, The Hudson Bay Co. and Sears are the only survivors. There is only one department store stores and new ideas 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 departshared job assignments — shared time by two associates ment stores are surviving. who will do the single assignments and have more time Another issue is the shift of sourcing of merchandise and with their families. That is a great idea that might encourhow it benefits consumers through better quality and creage more people to work in an industry whose hours are ativity. One also has to look at the myriad specialty retaildetrimental for young people who want to have a family ers – from booksellers and pharmacies to fashion speciallife. ists and office products superstores. None of these segRetailing needs leaders who will speak up. I am wonderments has anyone that speaks out effectively for their ing whether the next wave of leadership will be more open portion of the industry. and willing to face major issues — or intimidated by ecoOf course, they would need someone who could look benomic and political environment. 106 STORES / NOVEMBER 2007 WWW.STORES.ORG http://WWW.STORES.ORG
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