October 16, 2006
BraintTrust Query: How will a younger generation of headquarters executives and older store-level workers change the face of retailing?
By Bernice Hurst, Managing Director, Fine Food Network
Most of our discussions on RetailWire about baby boomers address ways in which to sell to them. Meanwhile, many corporate executives are probably part of that demographic and starting to consider retirement. Younger people who may have different approaches to retailing will eventually replace them. How will that affect the business and consumers – or won’t it?
Conversely, older workers (many retired from the full-time workforce) are increasingly finding work at store-level.
Recruitment instructions from organizations such as ACAS (Advisory, Conciliation and Arbitration Service) here in the U.K. seem designed to encourage retailers to hire older workers for the shop floor. Which then leads to questions about what those people did before. Were they executives in a past professional life? Are they using their experience to go back to their roots? Think about that for a minute. There are decided advantages for customers and for willing and eager young retirees but what about the new bosses, now in charge of people who were once bosses themselves? Numerous interesting possibilities spring to mind.
As the faces at headquarters and in-store change, so too may the face of retailing.
Discussion Question: How will a younger generation of headquarters executives and older store-level workers change the face of retailing?
BrainTrust
Recent Discussions
Discussion Questions
Poll
My sense of things is that older store level employees will likely lead to better customer service (the employee will intuitively understand the concerns, needs, and frustrations of the shopper as they are also consumers, shoppers, and customers). Younger (adolescent) employees are more inclined to look at “work” as a way to get a money for a weekend movie with friends and not see it in the context of a “business” having customers with needs.
Younger executives will introduce their own methods of doing things (technology, innovation, etc.). Some of those things will fail, some will succeed, but the executive will be less bound to the “conventions or traditions” of how things are done and will look for ways to exploit opportunities.
It should be interesting to see how two generations, both lacking wisdom, survive trying to both manage each other and work together.
The differences between the several previous generations actually built things. Today, the several generations succeeding them haven’t done that. They mostly traded 4 years of partying for what was once a career’s journey to gain wisdom, left the laundry at Mom’s and stepped in making more than any one with no experience deserved in any field let alone retailing.
Wisdom is a lost trait for many in the succeeding generations. They fail to see the value of it and have little respect for it. That possibly comes from the same generations being rewarded without accomplishment since grade school.
The difference couldn’t be more evident than it is with third generation retailing in the independent sector.
The conflict will likely lie in a complete lack of generational respect for each other. That is hard to surmount; each have so different a vision of sacrifice and reward. It may come to a head or it may not. Current CEO and executive salaries and bonuses are emblematic of the strife that lies ahead in the projected turnabout of roles. Is it resentment? Or is it a lack of understanding between the generations? It’s likely a little bit of both. However, there was a completely different set of expectations at the launch of careers between these generations and those preceding it. I think it likely that the expectations have deepened even more so.
Since many in the rising generations barely recognize or value wisdom, it’s likely not going to make it easier for them to look to the elder to guide them. Moreover, the response from the elder being guided into the abyss by the younger will likely not go quietly either.
The end result in all of this may bode well for retailing but likely will have tremendous adverse repercussions on customer service. The premature leadership will likely misinterpret the result.
Wow, great question. While I’d love to believe what Bill says about the older generation listening more and being more observant, I’m not sure that I can agree. The younger generation is more technically savvy. The older generation moved around from job to job, in the last 15 years, almost as much as the younger generation. Why is it bad to move around early on? Doesn’t it round one out? Doesn’t it create more exposure to different philosophies? The older generation created many of the problems that presently exist at retail. Aren’t we the ones who made every day sale day? Aren’t we the ones who reduced margins and reduced service? Yes, the older generation is now trying to rectify the poor customer service issues. Yes, retailers are trying to figure out how to increase margins with other than soft dollars. Perhaps, side by side, both generations can bring their disparate strengths to the table to create better retailers. The older generation is not ready to step aside fully. Remember, 60 is the new middle age or the new 40. If that is true, many of us will still be engaged for the next 10-15 years. We will need to work together.
The new, younger crop of HQ executives will focus more upon technology and be guided by their more diverse composition than exists today. That will result in a more international flavor in food assortments and presentations, and new innovations in how to get tedious jobs accomplished at store level. They will also expand out-of-store marketing and further change that face of food retailing.
Older workers, working under this screen of evolving events, will bring about a greater concentration on customer service and human interplay. They will add a more comfortable feel to the shopping experience. The future changes should be even more appealing for food retailing.
Maybe it’s my own advancing age, but I am pretty sure that older people listen better and are more observant than younger ones. These are good attributes for someone working at store level trying to help shoppers fulfill their needs.
The younger executives at headquarters are another story. They tend to have their eyes on their next career move and the next quarter’s results. They care about customers and employees. But these are far down the list after shareholder value and personal goals.
I believe we can get a good indication of the evolution of the grocery industry by looking at the path that has been chosen by other industries that are run by post boomer executives. These are the industries that have outsourced everything they can, so I would imagine that we will see the demise of the grocery chain-operated warehouse (this is already happening).
Every cost center will be examined and all bookkeeping, personnel, benefits, etc. will be outsourced to India or the next “cheapest” service provider. The management will become more detached from their customers.
Every effort will be made to remove services from the stores. The meat, seafood and produce departments will become prepackaged refrigerated sections. The front end will be dominated by self check out isles. The medicine department will triple in size and grocery carts will be rented. Management will focus on operational overhead because the consolidation of food manufacturers/processors will make it impossible for grocers to squeeze operating margins out of the supplier community. The store managers primary job will be managing DSD suppliers as everything will delivered by third parties.
Let’s review now: no meat, no produce, no front end employees. Few, if any stockers as DSD will take care of their own. Management will communicate with stores electronically and stores will exclusively operated by baby boomer retirees and management will have to treat them very well because they don’t need the jobs and won’t put up with being mistreated. In fact, management will outsource so much that their only function will be keeping their baby boomer employees happy.
Baby Boomers (like me) need to be careful not to stereotype Gen Y headquarters managers as they advance to leadership roles. Plenty of observers have pointed out Gen Y’s perceived lack of loyalty, short attention-span and lack of work ethic. But don’t paint this group with a broad brush; the ones who make it to the top rungs of a retail organization will exhibit the same drive as their Boomer predecessors. Their immersion in technology will likely speed some new “best practices” for the industry.
The spread of retired “boomers” to the in-store workforce will be a more interesting development. Workload and back-of the store design efficiencies will need to develop in response to the workers’ physical limitations. And the escalating health care needs of this group will drive up benefit costs in significant ways.
It’s going to be an interesting situation since you have, for the first time, several generations working side-by-side. This is going to drastically change the dynamics of the workplace, especially since different generations have different values.
Senior executives have to realize that there are potential difficulties with having managers who may be half the age of the people who report to them. It will take tact, discipline and more than a measure of respect for people to work well together and maintain productivity.
For one thing, I would suggest that younger managers take advantage of the expertise provided by older workers. Work with them rather than trying to be a command and control type. People who have spent a lifetime working are not going to respond well to the “I’m-the-boss-so-it’s-my-way-or-the-highway” syndrome.
You might want to also pair up older workers with younger ones. Both can learn from the experience. It can’t hurt to have people from different generations working together. The more they learn about each other, the less likely there is to be an altercation.
Overall, I’d say that the vast majority of employers out there have yet to take advantage of this tremendous asset.
The younger generation is technologically savvy. They’ve grown up with personal computers and the internet. They understand technology’s great potential. Even if you assume that store staff is getting older, more and more of them have become heavy technology users themselves, in their private lives. The internet raises everyone’s horizons and expectations for quicker, more forthright communication.
The next generation of executives will bring a new insight into retail and bring the necessary changes to the retail supply chain, from point of manufacture to point of sale. In my opinion, if you want a glimpse into the future, take a close look at the Target Corporation. If I am not mistaken, the average age in the corporate office is under 30 years old. 67% are women and the company actively recruits and trains new talent.
The company is focused on the customer, the brand and the culture. “Expect more, Pay Less” is a mantra within the corporate office and the company delivers to the consumer. What makes this company unique, continues to be it’s ability to evolve with the customer.
Fact based decision, trend analysis, price volume modeling and supply chain cost reductions are part of everyday business in the company. The long and short of the future as I see it is simply this; The next generation will make retail successful by selling product to consumers in new and innovative ways, vs. the old guard trying to make profit by BUYING product and not really focused on selling the products to the customer.
More Discussions
Is Five Below Poised For Even Greater Growth?
Five Below is hitting serious growth numbers. Can this trend continue?Should IKEA Be Flattening Management?
Should IKEA be trimming down its management headcount?Is Legislation the Answer on Visa, Mastercard Swipe Fees as ~$200 Billion Record Is Set?
Is lawmaking the way forward on swipe fees?
My sense of things is that older store level employees will likely lead to better customer service (the employee will intuitively understand the concerns, needs, and frustrations of the shopper as they are also consumers, shoppers, and customers). Younger (adolescent) employees are more inclined to look at “work” as a way to get a money for a weekend movie with friends and not see it in the context of a “business” having customers with needs.
Younger executives will introduce their own methods of doing things (technology, innovation, etc.). Some of those things will fail, some will succeed, but the executive will be less bound to the “conventions or traditions” of how things are done and will look for ways to exploit opportunities.
It should be interesting to see how two generations, both lacking wisdom, survive trying to both manage each other and work together.
The differences between the several previous generations actually built things. Today, the several generations succeeding them haven’t done that. They mostly traded 4 years of partying for what was once a career’s journey to gain wisdom, left the laundry at Mom’s and stepped in making more than any one with no experience deserved in any field let alone retailing.
Wisdom is a lost trait for many in the succeeding generations. They fail to see the value of it and have little respect for it. That possibly comes from the same generations being rewarded without accomplishment since grade school.
The difference couldn’t be more evident than it is with third generation retailing in the independent sector.
The conflict will likely lie in a complete lack of generational respect for each other. That is hard to surmount; each have so different a vision of sacrifice and reward. It may come to a head or it may not. Current CEO and executive salaries and bonuses are emblematic of the strife that lies ahead in the projected turnabout of roles. Is it resentment? Or is it a lack of understanding between the generations? It’s likely a little bit of both. However, there was a completely different set of expectations at the launch of careers between these generations and those preceding it. I think it likely that the expectations have deepened even more so.
Since many in the rising generations barely recognize or value wisdom, it’s likely not going to make it easier for them to look to the elder to guide them. Moreover, the response from the elder being guided into the abyss by the younger will likely not go quietly either.
The end result in all of this may bode well for retailing but likely will have tremendous adverse repercussions on customer service. The premature leadership will likely misinterpret the result.
Wow, great question. While I’d love to believe what Bill says about the older generation listening more and being more observant, I’m not sure that I can agree. The younger generation is more technically savvy. The older generation moved around from job to job, in the last 15 years, almost as much as the younger generation. Why is it bad to move around early on? Doesn’t it round one out? Doesn’t it create more exposure to different philosophies? The older generation created many of the problems that presently exist at retail. Aren’t we the ones who made every day sale day? Aren’t we the ones who reduced margins and reduced service? Yes, the older generation is now trying to rectify the poor customer service issues. Yes, retailers are trying to figure out how to increase margins with other than soft dollars. Perhaps, side by side, both generations can bring their disparate strengths to the table to create better retailers. The older generation is not ready to step aside fully. Remember, 60 is the new middle age or the new 40. If that is true, many of us will still be engaged for the next 10-15 years. We will need to work together.
The new, younger crop of HQ executives will focus more upon technology and be guided by their more diverse composition than exists today. That will result in a more international flavor in food assortments and presentations, and new innovations in how to get tedious jobs accomplished at store level. They will also expand out-of-store marketing and further change that face of food retailing.
Older workers, working under this screen of evolving events, will bring about a greater concentration on customer service and human interplay. They will add a more comfortable feel to the shopping experience. The future changes should be even more appealing for food retailing.
Maybe it’s my own advancing age, but I am pretty sure that older people listen better and are more observant than younger ones. These are good attributes for someone working at store level trying to help shoppers fulfill their needs.
The younger executives at headquarters are another story. They tend to have their eyes on their next career move and the next quarter’s results. They care about customers and employees. But these are far down the list after shareholder value and personal goals.
I believe we can get a good indication of the evolution of the grocery industry by looking at the path that has been chosen by other industries that are run by post boomer executives. These are the industries that have outsourced everything they can, so I would imagine that we will see the demise of the grocery chain-operated warehouse (this is already happening).
Every cost center will be examined and all bookkeeping, personnel, benefits, etc. will be outsourced to India or the next “cheapest” service provider. The management will become more detached from their customers.
Every effort will be made to remove services from the stores. The meat, seafood and produce departments will become prepackaged refrigerated sections. The front end will be dominated by self check out isles. The medicine department will triple in size and grocery carts will be rented. Management will focus on operational overhead because the consolidation of food manufacturers/processors will make it impossible for grocers to squeeze operating margins out of the supplier community. The store managers primary job will be managing DSD suppliers as everything will delivered by third parties.
Let’s review now: no meat, no produce, no front end employees. Few, if any stockers as DSD will take care of their own. Management will communicate with stores electronically and stores will exclusively operated by baby boomer retirees and management will have to treat them very well because they don’t need the jobs and won’t put up with being mistreated. In fact, management will outsource so much that their only function will be keeping their baby boomer employees happy.
Baby Boomers (like me) need to be careful not to stereotype Gen Y headquarters managers as they advance to leadership roles. Plenty of observers have pointed out Gen Y’s perceived lack of loyalty, short attention-span and lack of work ethic. But don’t paint this group with a broad brush; the ones who make it to the top rungs of a retail organization will exhibit the same drive as their Boomer predecessors. Their immersion in technology will likely speed some new “best practices” for the industry.
The spread of retired “boomers” to the in-store workforce will be a more interesting development. Workload and back-of the store design efficiencies will need to develop in response to the workers’ physical limitations. And the escalating health care needs of this group will drive up benefit costs in significant ways.
It’s going to be an interesting situation since you have, for the first time, several generations working side-by-side. This is going to drastically change the dynamics of the workplace, especially since different generations have different values.
Senior executives have to realize that there are potential difficulties with having managers who may be half the age of the people who report to them. It will take tact, discipline and more than a measure of respect for people to work well together and maintain productivity.
For one thing, I would suggest that younger managers take advantage of the expertise provided by older workers. Work with them rather than trying to be a command and control type. People who have spent a lifetime working are not going to respond well to the “I’m-the-boss-so-it’s-my-way-or-the-highway” syndrome.
You might want to also pair up older workers with younger ones. Both can learn from the experience. It can’t hurt to have people from different generations working together. The more they learn about each other, the less likely there is to be an altercation.
Overall, I’d say that the vast majority of employers out there have yet to take advantage of this tremendous asset.
The younger generation is technologically savvy. They’ve grown up with personal computers and the internet. They understand technology’s great potential. Even if you assume that store staff is getting older, more and more of them have become heavy technology users themselves, in their private lives. The internet raises everyone’s horizons and expectations for quicker, more forthright communication.
The next generation of executives will bring a new insight into retail and bring the necessary changes to the retail supply chain, from point of manufacture to point of sale. In my opinion, if you want a glimpse into the future, take a close look at the Target Corporation. If I am not mistaken, the average age in the corporate office is under 30 years old. 67% are women and the company actively recruits and trains new talent.
The company is focused on the customer, the brand and the culture. “Expect more, Pay Less” is a mantra within the corporate office and the company delivers to the consumer. What makes this company unique, continues to be it’s ability to evolve with the customer.
Fact based decision, trend analysis, price volume modeling and supply chain cost reductions are part of everyday business in the company. The long and short of the future as I see it is simply this; The next generation will make retail successful by selling product to consumers in new and innovative ways, vs. the old guard trying to make profit by BUYING product and not really focused on selling the products to the customer.