A large variety of stores within the retail panorama, independently from the brand or the organization seem managed by employees in the managerial position, which are underperforming.
Why is that? How do we know?
There is a huge variety of stores in both outlet centers, shopping malls or even on the high street where let’s admit it customer service is awful.
Now if the store team is not having the right approach with consumer there could be a massive variety of causes, however being wrongly managed, motivated and rewarded by their line managers can be one it.
We have spoken a lot about team motivation before, and a large variety of tools and approach are available to improve that. That said could be questionable that unsuccessful managers are running retail units.
The question is why senior leaders are not aware of it
One of the answers could be that the business unit is performing from a revenue standpoint hence the satisfaction or the morale of the team doesn’t count.
You will question, “if the shop is not managed in a successful way, how the numbers can be green?” well a simple explanation of that is in the fact that the shop represent a well established brand, is in a prominent location, the company is operating a well targeted price policy for the local market and so forth.
The profitability of these units will not present a problem until there are some external circumstances that will highlight the problem; the one that an underperforming manager manages the shop.
In fact whilst is working on a short period, the store is probably hitting the quarterly revenue target, it will probably present a problem in the long run. So the question is, why senior leader are not looking at the impact of those missed opportunity in the mid-long term?
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