Retail Industry Challenges & Solutions: Preparing for the Future Retail Industry Challenges & Solutions: Preparing for the Future April 13, 2005

2 Retail Industry Virtual Classroom Layout Chat Room Participant List Presentation Slide Area

3 Retail Industry Submitting Questions  Enter questions into the Chat Room (located in lower left corner of the virtual classroom).  To submit a question, type the question in the text box and click the arrow button.  To send questions to the Presenter only (not to Everyone), select Presenter from the drop- down menu before clicking the arrow button.  Questions will be answered at the end of the presentation. Chat Room Arrow Button Text Box Drop-Down Menu

4 Retail Industry Access to Webinar Materials  Materials and presentation slides used in this webinar will be available for download from the Resources & Information section of the Workforce 3 One Webspace.  All webinars are recorded and available for viewing after the event. Recorded webinars will be posted to the Multimedia Information/ Self-Paced Learning section of the Workforce 3 One Webspace.

5 Retail Industry Participants Panelists:  Kathy Mannes, National Retail Federation Foundation  Emily Crawford, Saks Incorporated  Steve Flynn, Toys “R” Us  Steve Wing, CVS/pharmacy Moderator:  Maggie Ewell, Business Relations Group, US DOL ETA

6 Retail Industry Agenda  Introduction (Maggie Ewell)  Overview of Retail Industry workforce needs and challenges (Kathy Mannes)  Overview of Retail Skills Centers and National Professional Certification in Customer Service (Kathy Mannes)  Overview of RetaiLearning Leadership Initiative (Kathy Mannes)  Employer Commitment to RLL and the public workforce system  Saks, Incorporated (Emily Crawford)  Toys “R” Us, (Steve Flynn)  CVS (Steve Wing)  Review of outcomes and connection to Workforce 3 One.

7 Retail Industry President’s High Growth Job Training Initiative Vision  National leadership to engage industry leaders  Investment in national models and demonstrations of workforce solutions in high-growth/high-demand industries  Sharing information and models widely with the workforce system

8 Retail Industry High Growth Outcomes  Targeted investment of workforce development resources and support for private and public sector partnerships  Increased integration of community and technical colleges with business and workforce development system activities  Pipeline of skilled workers through registered apprenticeship training opportunities  Workers with paths to career- enhancing opportunities in high- growth occupations

9 Retail Industry Types of Services If you have worked with retailers, please let us know what types of service you provide. Examples include:  Referrals  Screening  Training  Certification Testing (Please enter your responses using the Chat Feature)

10 Retail Industry Challenges What do you see as the biggest workforce challenge facing the retail industry? (Please enter your responses using the Chat Feature)

11 Retail Industry Kathy Mannes Manager, Workforce Initiatives National Retail Federation Foundation

12 Retail Industry  More than 23 million people are currently employed in the retail industry, about 1 in 5 working Americans  Retailing is expected to add another 2.1 million jobs by 2012, making it among the largest sources of future job growth  Retailing is the entry to employment for many individuals Source: NRF Foundation, Retail Industry Indicators, August 2003 Retail: Careers in a High Growth Industry  2004 NRF Foundation

13 Retail Industry  Retailing contributes almost 10% of U.S. GDP  2003 U.S. retail sales: $3.8 trillion  2004 U.S. retail sales: $4.1 trillion Source: NRF Foundation, Retail Industry Indicators, August 2003 Retail: Careers in a High Growth Industry  2004 NRF Foundation

14 Retail Industry  Marketing/Advertising  Store Operations  Loss Prevention  Store Management  Finance  Distribution, Logistics, Supply Chain Management  Human Resources  IT/E-commerce  Sales & Sales Related  Merchandise Buying/Planning  Entrepreneurship  2004 NRF Foundation Retail: Careers in a High Growth Industry

15 Retail Industry Example Career Paths:  Store Management  Store Operations Retail: Careers in a High Growth Industry

16 Retail Industry The retail industry offers competitive compensation in a variety of long-term career areas: Average salary* Source: NRF Foundation, Annual Specialty Store Compensation and Benefit Survey, 1999; *Salaries average entry-level through executive compensation. Salaries are representative of national averages and may be greater or less based on type of retail (specialty, department store, mass merchandiser), geographic location, store size, and sales volume.  Marketing, Sales Promotion, and Advertising$105,000  Store Operation$172,000  Loss Prevention$90,000  Store Management$60,000  Finance$185,000  Human Resources$95,000  IT and E-commerce$115,000  Sales and Sales-Related$50,000  Merchandise Buying/Planning$105,000  Distribution, Logistics, Supply Chain Management$110,000  Central Administration (C-level, Law, Real Estate, $239,000 Store Planning/Design/Construction) (commission sales) © 2003 NRF Foundation. All rights reserved. Retail: Careers in a High Growth Industry

17 Retail Industry Average Salaries from Entry Level to Store Manager SalariedAverage salary* Source:2004 NRF Foundation, Annual Specialty Store Compensation, Benchmark and Benefit Survey, *Salaries average entry-level through executive compensation. Salaries are representative of national averages and may be greater or less based on type of retail (specialty, department store, mass merchandiser), geographic location, store size, and sales volume.  Store Management$46,000  Trainer/Specialist$68,000  Visual Merchandiser$49,000  Asst. Store Manger (Small Retailer)$31,000  Dept. Manager (Big Box)$32,000 Hourly  3 rd Key Holder $11.90/hour  Full Time Sales Associate$10.70/hour  Full Time Stock$10.34/hour Retail: Careers in a High Growth Industry © 2004 NRF Foundation. All rights reserved.

18 Retail Industry The retail industry offers tremendous opportunity in a variety of retail formats: Source: NRF Foundation, Dictionary of Retailing and Merchandising, 1995  Catalog  Department Store  Discount Store  Drug Store  Supermarket  Convenience Store  Franchise Operation  Independent Retailer  Internet Retailer  Mass Merchant  Specialty Store  Super Store/Big Box © 2003 NRF Foundation. All rights reserved. Retail: Careers in a High Growth Industry

19 Retail Industry  Recruit, train, and place individuals in long-term retail careers and flexible job opportunities  Supported by partnerships among NRF Foundation; mall developers; employers; local state and federal government agencies; schools and colleges; and community-based organizations  Work closely with and expand the capacity of the Public Workforce System  Serve as Satellite One-Stops  Meet Industry HR needs Skills Centers

20 Retail Industry  Students and employees receive: –Standards-based assessment –Sales and service training –Support to advance in retail and service careers  Employers gain access to highly skilled and motivated workers  Communities pool resources and work together to meet common workforce development goals © 2004 NRF Foundation. All rights reserved. Skills Centers

21 Retail Industry Map of Existing and Potential Retail Skills Centers Key: Existing Retail Skills Centers Potential Retail Skills Centers

22 Retail Industry Benefits of National Professional Certification In Customer Service ® Employers  Distinguish competencies of certified applicants  Recognize high performing workers  Develop and reinforce a staff dedicated to providing quality customer service Workers  Instill pride and reinforce value of work skills  Provide portable credential for work and education Workforce System & Trainers  Ensure that industry competencies are being met

23 Retail Industry National Professional Certification in Customer Service ®  70-question assessment comprised of real-life customer service situations –Delivered via the internet, but must be proctored –Video and audio, with multiple-choice questions presenting possible courses of action –Takes just over an hour to complete –Candidate receives score immediately –$50-$70 assessment and certification fee © 2004 NRF Foundation. All rights reserved.

24 Retail Industry Online Demo © 2005 NRF Foundation All rights reserved. Not for duplication or distribution. Log onto and click on: “Assessment & Certification”

25 Retail Industry This is the price list at a garden shop. Use the price list to answer this question. If a senior citizen buys a bird feeder on Wednesday, how much will it cost? A. $16.00 B. $17.00 C. $18.00 D. $19.00

26 Retail Industry A hardware store has this sign displayed at its entrance. One day, an associate sees a child bump into a shelf of industrial strength cleaners. A bottle falls off the shelf and breaks. Its contents spill on the floor. The child runs to a parent in the next aisle, who doesn’t seem to notice what happened. Which of these should be the associate's FIRST response? A.Approach the child and ask open-ended questions B.Direct customers and employees away from the area C.Calmly clean the spill according to the directions on one of the bottles still on the shelf D.Let the parent know about the damage and tactfully ask for payment according to the policy

27 Retail Industry A museum has this sign clearly posted on the door. A museum employee is giving directions to a visitor and sees that another visitor has a small child who has brought a dripping ice cream cone into an exhibit hall. The child is standing near a display of antique dolls. Which of these is the employee’s best response? A.Briefly interrupt the first visitor and ask the second visitor kindly to dispose of the ice cream B.Finish helping the first visitor, then politely explain to the second visitor that he must step outside until the ice cream is gone. C.Excuse herself from the first visitor briefly and tell the second visitor that he will have to pay for anything his child might damage D.Call security or a supervisor to deal with the situation, but warn the visitor and give him some time to leave before they arrive.

28 Retail Industry NRFF High Growth Job Training Initiative: RetaiLearning Leadership  Goal: To develop an industry-wide career ladder, supporting competencies, and training resources for entry-level through management level positions  Builds on partnerships and training developed by industry, including Toys “R” Us; Saks, Inc.; CVS Pharmacy; and The Home Depot  Provides industry-driven leaning for employer, public workforce, and education use

29 Retail Industry RetaiLearning Leadership Timeline  December 2004: E-Learning Modules Developed for Entry Level  Dec. ’04-May ’05: Customer Service Certification Pilot  January 2005: Management Competencies Developed  March 2005: Pilot Entry Level Training  January 2006: Pilot Management Level Training  June 2006: Delivery of Comprehensive Industry-wide Competencies and Training Curriculum along the Cross-Industry Career Ladder

30 Retail Industry Pilot Sites  6 sites are under development for Phase I of the pilot- testing Toys “R” Us curricula. –Skills Centers, WIBs, Community Colleges, Retail Employers  More pilot sites will be needed for Phase II – management training  Please contact us if you are interested in being a pilot site! –Bridget Garra, NRFF

31 Retail Industry Emily Crawford Vice President of Training and Development Saks, Incorporated

32 Retail Industry Importance of Training  Saks Incorporated is keenly aware of the gap that exists between the knowledge and skills the retail industry requires today versus what will be required in the future  The need for competent retail managers has never been so intense for the retail industry as it is today  There is consensus among retailers that the acquisition of knowledge and skill development is necessary to build talent, and that the industry can profit from investing in the right management training

33 Retail Industry Key Training Initiative  Saks Incorporated Training & Development Goal = Improve Performance and Build Talent  Accomplish goal by providing efficient and effective curricula that will: –Improve retail manager productivity –Increase bench strength for this position –Enhance job satisfaction

34 Retail Industry Key Training Initiative (Cont’d)  As a partner in the RLL Initiative: –Developed competency database for a retail manager –In process of designing and producing corresponding core curriculum to support required competencies  Results = Retail management candidates will have knowledge and skills to excel in retail areas of accountability

35 Retail Industry Areas of Accountability for a Retail Manager  Selling and Service  Merchandising  Human Resources  Store Operations  Financial Reporting

36 Retail Industry Connections to the Public Workforce System  Saks Incorporated is a strong supporter of the public workforce system - we rely on this system to provide qualified retail management candidates  A strong public workforce system with a connection and support from employers is a requirement for growth in the retail industry

37 Retail Industry Steve Flynn Director of Learning Toys “R” Us

38 Retail Industry Importance of Training  Toys “R” Us believes that one of the critical elements of our future success will be the ability of our Associates to relate to the customer.  We feel that the NRF certification provides us with a basic "comfort level" that the candidate is interested in, and has a facility for, good customer service.

39 Retail Industry Commitment to Training  We invested our time and resources to develop a comprehensive employee training program to ensure that our workers are highly skilled in a number of components that are critical to the success of our store and ensure employee professional and career growth. Some examples are: –Customer Service –Selling –Supervision –Delegation

40 Retail Industry Connections to the Public Workforce System  As a company, Toys “R” Us has been a strong supporter of the public workforce system.  We believe that the public workforce system has the capacity to provide qualified candidates who can become outstanding Associates.  A strong public workforce system with linkages to employers is critical for economic growth in our company.

41 Retail Industry Importance of Model Sharing  Beyond our personal interest in seeing better-qualified candidates referred by the public workforce system, we feel that it is important that the retail sector, which over the past few years has dramatically increased in importance to our country's economic growth, requires an identified and recognized standard of achievement.

42 Retail Industry Importance of Model Sharing (Cont’d)  We feel that by having access to an industry driven competency model and training curricula, the public workforce system can provide qualified applicants and assist small and large employers in the retail industry with pre- employment and incumbent worker training.

43 Retail Industry Steve Wing Director of Government Programs CVS/pharmacy

44 Retail Industry CVS = ? What does CVS stand for?

45 Retail Industry Government Programs  Vision Statement A cutting-edge leader in the development and implementation of diverse employment programs, which establish CVS Corporation as the distinguished standard for workforce initiatives  Mission Statement Establish partnerships with local, state, and federal agencies, non-profits, and faith based organizations to support the hiring, training, development, and retention of quality associates while delivering added value to CVS Corporation

46 Retail Industry CVS Career Path

47 Retail Industry Final Thought What are you, the public workforce system, looking for in working with the retail industry? (Please enter your responses using the Chat Feature)

48 Retail Industry Stay Informed, Get Connected! Workforce 3 One:  Communities of practice  Live Web-based events  Register for updates! For more information about working with the public workforce system:  Visit  Call US2-JOBS  Contact the Business Relations Group at phone (202) or

49 Retail Industry