the future of retail?

Here is an article about another successful retailer that is cutting hours and benefits for their employees. It is a sad trend.
Personally, I like the idea of having everyone only work 24 hours a week. That way, there would be very little unemployment and people could enjoy the elusive concept of work / life balance.
The only way to make it work, though, is to pay everyone at least $15 - $20 hourly and include benefits.
This is not an impossible concept. It would give everyone a secure base to live on and enough time to pursue their passions (money-making or not).  It would be a small step toward a more equitable distribution of wealth in this country as shown in my earlier post.

read this and weep:

Forever 21 policy

strategic planning retreat

Wow,  I just got home after turning in my shirts and my badge and guess what was waiting for me in the mailbox?  Cabela's chief outfitter newsletter - and it's full of bullets (not ammunition) about their strategic planning retreat.

I couldn't ask for better fodder for my blog!

Even though the first pillar of the graphic on the front is labeled OUTFITTERS, none of the bullets are aimed at supporting us. Starting at the top, only the outfitters on the floor can deepen customer relationships in a real and personal way, and the only way to do that is to have long term employees who care. If the company is really committed to that, they could share with us, the outfitters, how they plan to support us in that endeavor. I've given them plenty of ideas on how to do that, and I might have more if they would care to listen or apply any of them.  I sure wish I knew what "sustain and adapt our culture" means, there might be something good there, but I'm afraid it is more image driven than real.

Most of the bullets are aimed at supporting the shareholders. Improving profitability and growing revenue along with the favorite word "optimizing" might keep things looking good on paper.
 Many of the full time outfitters and probably some part timers (who are doing this for fun and don't need the money) might be stockholders thanks to Cabela's 401k contributions and employee stock purchase plan. As stockholders, we might stand to profit from Cabela's aggressive vision. Personally, I think the vision is blurred and I would love to see us "focus our priorities" with more bottom - up strengthening.

 The message I am getting is that the outfitters are an integral part of building the business, we are Cabela's greatest asset, we need to be engaged because it's in our nature. Unfortunately, the reality is more like outfitters are a line item in the budget that keeps getting cut. It really can't be both with any honesty and integrity.

mind-blowing link

This link helped change the way I think about the economy.
It is something every American should be aware of.

wealth distribution in the US

farewell

Employee Insights

Updates from the bottom rung

Karin Allen

Cabela’s Outfitter • Gifts & Fudge - Grand Junction • August 22, 2013

Farewell Cabela’s:

After a full year as a Cabela’s Outfitter, I am moving on.  It’s been an eye opening experience working on the bottom rung of the corporate ladder.  I tell my friends I’m just learning how not to run my multi-million dollar corporation when the time comes.

The latest round of new hires are coming aboard, full of the core values and indoctrinated into the Cabela’s corporate culture. It’s good stuff, and I was enthusiastic to become part of the team when I first walked out to the floor. There are a lot of great, dedicated Outfitters on the floor, in spite of how we are often treated (or ignored) by management.  

I was taken under the wing of my co-workers on my first day.  I got to watch fudge and nuts being made and learned how to serve it to customers. I had a general tour of the gifts department and it was okay.  When I showed up for my second day, there was no one but me in the department.  I was baffled, but I knew how to dispense fudge and I spent my time dusting and getting familiar with products on the shelves. 

This week, our new hire trumped my experience.  She showed up for her very first shift and there was no one, NO ONE, in her department to welcome her or show her what to do.  I’m embarrassed for Cabela’s and so sorry for our new employee.  I was looking forward to training someone before I left, but I guess the next fudge maker will have to figure out their own fudge “voodoo”.

cha cha cha changes

The revolving door of retail turnover 

Why is Cabela’s shooting itself in the foot?

Employee turnover costs U.S. employers something like 4 billion dollars annually. (It must be true - I saw it somewhere on the internet)

We have had a huge amount of turnover in our little store since I’ve been here. I’ve tried to address some of the issues that contribute to that in past insights, but it seems that every new policy handed down from above just keeps making it worse.

Penny wise and pound foolish:

28 hour work week for part time employees- This new policy makes it just about impossible for part time employees to make a living anywhere and it is becoming the norm across the retail nation.  28 hours is not enough to get by at $9 an hour. And if you are working 28 hours, it is extremely difficult to find or hold down a second job without giving up any chance of  “work / life balance”.  There is not even the carrot of working more hours at Christmas anymore.  Worst of all, the buzz wants us to blame Obamacare for this latest indignity.

Obamacare is trying to make healthcare more affordable and inclusive.  It is corporate greed that is to blame.  Cabela’s could choose to treat it’s employees with the respect they deserve by simply paying us a living wage and including health care in the deal instead of cutting our hours so they don’t have to pay for any potentially mandated insurance.  By restructuring the pay scale and including real health insurance, Cabela’s (or any large retailer) could probably pay for it in reduced employee turnover.  Once employees feel secure with their benefits and are payed more than enough to cover their basic living expenses....they might get to become CONSUMERS again and that is good for business all the way around.

employee compass results

Employee Insights

Updates from the bottom rung

Karin Allen

Cabela’s Outfitter • Gifts & Fudge - Grand Junction • June 19, 2013

  

 2013 ENGAGEMENT PRIORITIES

1. Growth & Development
2. Future/Vision
3. Trust
4. Recognition
5. Support and Involvement
6. Diversity

Employee Compass

Is this compass set at true north, magnetic north, or wherever management says is north?

What is Employee Engagement?

According to the June 2013 Outfitter newsletter, Employee engagement has increased to 71% favorable. Unfortunately, I have no idea what that means. 

I think I am “engaged”:

I come to work and do my job.  I ask for the tools I need to complete my tasks.  I enjoy interacting with my customers and co-workers.  I am constantly improving my efficiencies.  I spend too much time thinking about my job and Cabela’s as a whole during my time away from work... this writing is done at home on my days off or sleepless nights.

But I have no real concept of what employee engagement means from the Corporate point of view.  I’m concerned that all the “communication” in the form of newsletters, index cards, posters etc. is meaningless to anyone below the rank of management.  Most of it comes in the form of out of context “bullets” which reminds me of shooting into the air instead of at a target (using a metaphor that Cabela’s can understand).

I’m not sure whose priorities the 2013 Engagement Priorities are.  Are they a direct result of the employee survey?   Are these priorities addressing the top concerns of the outfitter?  I’m assuming they are the top items that need serious work and attention from management in support of employees.  Am I being naive again?

  Here’s how I would rank the priorities and explain what they mean to me:

1. Support and Involvement - I would like my management to be involved in my day to day tasks to the point of helping me know what their priorities are for me, and making sure I have the tools and training to do what needs to be done.  This sounds pretty basic, but I continually have issues here.
2. Recognition - In the past 4 months, there has been huge turnover in our store.  The best employees have taken a leave of absence, hoping, I guess, that things will be better after some time off or that they will find something better before they are due back.  Several employees were fired, and others quit for a variety of reasons.  In the mean time, the outfitters that are still here are working twice as hard (with no more, and sometimes less paid hours) to compensate for vacancies until new hires can be hired and trained.  Moral is at an all time low.  I know that turnover costs dearly, and I believe that recognition and monetary compensation are two ways to control that.  There should be a better pay advancement system in place to reward and retain the best employees.  There should be some kind of discretionary  bonus system for employees who step up to the plate and put their best forward in difficult situations.  I got a fish card at Christmas, just like everyone else, including the two employees in my department who called in on the busiest day that our Cabela’s store ever had.  My Christmas bonus was a “green sheet”, but I couldn’t afford to buy much of anything even at a discount.  The new policy of buying stitched-in items at deep discount just makes me feel under compensated because I can’t afford to buy any. Point made.  
3. Trust - Trust is a two way street.  I think I am trustworthy and I would hope that my co-workers and supervisors find me to be trustworthy.  Unfortunately, it is not always a two way street.  This goes back to point one.  When I ask for what I need and I am told it will be done, it often takes until we are completely out and I really can’t do my job before it is taken care of.  I can trust that my needs will not be met in a timely manner and that is the wrong kind of trust.
4. Growth and Development -  I am assuming this refers to outfitters, not more stores.  Investing in continued training and advancement of the best employees would lead to better customer service and employee retention.  In my department there could be multiple opportunities to improve product knowledge.  This could be done by sales reps (for cheap) in a planned environment (conference room with multi-media, snacks and hands -on activities).  This kind of training could be fun, a break in the routine, and would certainly result in increased sales.
5. Diversity - I think we have pretty good diversity in our store except for a lack of hispanics.  The other day there was no one who could take a call in spanish.  We have good diversity in male/female, age, and even sexual orientation.  
6. Future/Vision - Again, with no explanation of what is meant by this, I’m guessing that management wants outfitters to at least understand if not help create a vision for the future. Sorry, I am clueless here.  My future/vision would be that Cabela’s would become a model of conscious capitalism.  That they would compensate employees as if they were truly their greatest asset, that they would help protect the environment for future generations by building green and recycling as much as possible. That they would promote and sell products that are made in factories that are built green, pay decent wages and recycle. That the products sold can pass the test of time and are not built with planned obsolescence in mind. And that they actively participate in conservation projects by donating time and money -  because it’s in your nature.

Have fun at your strategic planning retreat.  I hope you come home with more than just more bullets!

disconnect

Employee Insights

Updates from the bottom rung

Karin Allen

Cabela’s Outfitter • Gifts & Fudge - Grand Junction • April 22, 2013

I AM...not sure what this I AM campaign means. What are the strategic focus areas 2013-2015?  Why should I care?

I AM trying to communicate the disconnect between corporate, management and outfitters in the “field”

I AM hoping for two way communication

not just trickle down.

DISCONNECT

“TRY PROCESS CHANGES THROUGH OUR REGIONAL LEGENDARY IMPRESSIONS CHAMPION”  - I AM a proponent for process improvement

speak English please - what does this mean?

Retail Innovation Pipeline  Jan/Feb/March 2013

I took a copy of the “Pipeline” and was completely baffled by the front page article.  Let me share my lack of understanding.  First, I don’t know what the wiki is or how to search it.  Is that short for Wikipedia?  No, I tried that.  Second, just what are the strategic focus areas 2013-2015?  Have they changed since the 2012 strategic focus in my traditions handbook?  Either way, the handbook doesn’t really explain anything - it’s just a chart and some bullets.  The article does nothing to explain anything.  Maybe it’s just a teaser - don’t touch that dial - stay tuned for more information. 

I’m still wondering what the new visual might be and where the current strategic focus areas posters are that are hanging in the store.  I just received the folder with the I AM cards and I’ll have to admit that I didn’t even look in the folder until another employee found her cards and asked what the heck is this?  I replied that they were the I AM cards that I had been wondering about for a month.  

Now it’s like a puzzle.  What strategic focus area does this card go to???  

I AM present for my customers... easy, focus on the customer

I AM a Cabela’s brand ambassador...probably retail profitability because there’s more profit in our branded items

I AM an advocate of Cabela’s technology... direct channel growth, if direct channel is the internet.  

I AM mindful of Cabela’s expenses... maybe retail profitability... HEY - it says to participate in recycling programs.  I didn’t think we had one.  How can I participate?

I couldn’t figure out which strategic focus at least 3 or 4 of the cards were alluding to .

The Point:

Unfortunately these cards are written by someone else to tell us who we are supposed to BE as employees of Cabela’s.  I don’t really like someone telling me who I AM.  So I’ll write my own:

I AM quietly driving my own high standards

I AM part of Cabela’s community (not family)

I AM doing the best I can at my job with the tools and training I have been given

I AM amazing and constantly amazed

I AM trying to be an ambassador for peace 

I did casually ask a couple of other outfitters what they thought about the I AM cards and no one knew what I was talking about.  Can there be a disconnect if there is no connection to begin with?

A Simple Solution:   radical & not easy

Trash the Cabela’s Family thing.  I grew up in a family.  Families tend to be dysfunctional. I feel like I’ve married into the Cabela’s dysfunctional family and I want a divorce; or at least some counseling.

Example:  Please, Dad, can I have a small vacuum to suck up crumbs in the fudge shop and the styrofoam crumbs in gifts during the day?  Sure, I’ll go get one today.... hasn’t happened.  Here kids, thanks for cleaning out the garage. Here’s $10.  Go to a movie and have a pizza.  (never said in reply - but Dad, $10 won’t buy a movie or a pizza).  I’m referring to my paycheck in case you didn’t get it)

If you really want to create the Culture, create community.  It can’t be done from the top down. It involves facing the crap and working through it together.  It’s frustrating, painful and rewarding.  It involves trust building, honesty and integrity.  And I don’t mean printing it in the handbook, I mean living it in real, messy life.  A pretty lofty goal.  I know I am naive, but I believe that it is possible unless the core values is just an ad campaign designed to screw the bottom rung.  In my dysfunctional family my father was at least honest enough to say out loud, “Do what I say, not what I do”.

it's in your nature

Employee Insights

Updates from the bottom rung

Karin Allen

Cabela’s Outfitter • Gifts & Fudge - Grand Junction • April 4, 2013

“IT’S IN YOUR NATURE                                                           to treasure the same world and relish the same experiences as our customers, so we can enjoy all that nature has to offer, share it with our families and our children and help it thrive for tomorrow.”

It’s in your nature

to believe the outdoors should be protected

CORE VALUE: EXCELLENCE IN PERFORMANCE

This is an expression of who we are as a company, and what we believe.

I don’t hunt or fish, but I have gotten up before light when it feels like 10 below wondering what the heck possessed me to do it.... until we finally launched the rafts and I felt the pull of the current and the silence of the wild.  I’ve huffed and puffed my way up to the top of the mountain, grumbling and aching, trying to keep up with the boys with 6 foot long legs. Why?  I’m a total sucker for standing at the top, seeing the rugged peaks stretch on for miles with no signs of human intervention.  I get it... it’s in MY nature.

So can we just recycle as corporate policy already??

I was filling out my compass survey last month.  At the end you can list ideas or suggestions and I put down what came to mind then hit the “done” button.  I picked up the 8 1/2  X 11 envelope and the full page card stock paper that had my several digit user code on it and placed it in the trash can overflowing with the same and  thought, “drat, I was going to put recycling on that list”.  It was too late, so I thought I’d mention it here.

Every day we toss a huge amount of plastic bags away from new product that comes in the back door.  Every day we use tons of non recyclable styrofoam cups, bleached paper towels, reams of paper, plastic and aluminum containers that just go in the trash bins.  We can do better than that.   A bottom line that is good for the planet, our souls, and our image of excellence should dictate that we buy recycled and recyclable products and that we recycle what we can.  I put cardboard in the baler every day, but I have no idea if even that is being recycled.  Every outfitter I’ve mentioned it to, rolls their eyes and sighs.  Yes, we should recycle, but I just work here and there isn’t a recycle bin so it goes in the trash. 

A Simple Solution:  Let’s get the corporate bandwagon to promote sustainability and recycling

It would be totally doable and not expensive, unless you want to make a big campaign out of it and print up a bunch of glossy cards and flyers and tell the whole world how great we are because we recycle.  Let’s just do it.

On a grander scale, we are building whole new stores all over the place.  Are these new constructions built with the future of conservation in mind?  Green building is the future and it can start now.  That would be something to toot our horn about - zero energy construction, low carbon footprints, etc, etc.   How hard would that be to sell to the customers or the shareholders?

I think it would be one more great reason to shop Cabela’s or to invest (if I had any money to shop or invest, but that is another topic).

P.S. -  If you prefer to have the Insight emailed instead of printed, just give me an email address.

pricing

Employee Insights

Updates from the bottom rung

Karin Allen

Cabela’s Outfitter• Gifts & Fudge - Grand Junction •March 29, 2013

QUALITY   PRODUCTS             AND   SERVICES

“The strength of our brand is built on a foundation of high-quality standards.”

Tommy Milner

President and CEO

Pricing Policy

Why are we playing this losing game?

CORE VALUE:  INTEGRITY & HONESTY

Cabela’s Brand Products

  I remember when gore-tex first came out.  My first gore-tex jacket was a Cabela’s brand because I knew I was getting great quality and innovation at a good value.  I think I had to fit into a men’s small because women’s sizes weren’t available back then.

  The new “stitched in” tag line is a brilliant stroke of  marketing, truly taking our branding to a new level.  It meshes seamlessly with the new “It’s in your Nature” campaign.  In this brave new world of  retail insanity and competition, Cabela’s has all of the advantages; our own branded products, our own internet and catalog sales tools and outfitters able to give personal customer service on the sales floor. We even have our own credit card so customers can pay us interest on their purchases.

Price Wars

So why are we constantly competing with ourselves on price, and losing? 

Every day, all day long, I hear price discrepancies over the radio. The item is ringing up $$ and the customer said he saw a sign for $.  Most of these conversations end up with the customer getting a discount for any multitude of reasons.  

I have also seen many times where items are on sale in the catalog or on line and not in the store. After doing research, the customer comes to the store to buy the product (often from a distance) because they want to touch the item and see it and ask questions before they buy it. They come for the Cabela’s retail experience.  Then they notice the price is $$ more than the price they came in for.  If the customer brings up the discrepancy, they are usually given the lesser price.  These discrepancies create a disconnect that does not foster trust with the customer.  Placing the burden of pointing out these discrepancies squarely on the customer’s shoulders is a disservice - the opposite of customer service.  It also places the outfitter or cashier squarely in the middle of that uncomfortable, somewhat dishonest space.

 Now let’s discuss the customer that isn’t paying attention at the checkout counter.  That customer will often pay more for trusting  (or lack of attentiveness).  Are we taking advantage of that customer?  

A simple solution: keep pricing consistent 

It takes thousands of employee hours to constantly change prices in the computer and on the shelf.  Task team can’t keep up with it, especially when they are working a roll or some big project.  As a part time outfitter on the floor, I am rarely given any direction in this regard.  I find discrepancies when I am pricing replen items or when it’s slow and I just go around and check price tags. It’s pretty haphazard to put it mildly. It makes little sense to me when prices fluctuate down and back up again.  Anything with a sticky tag gets more “used” looking when you peel and re-stick price labels over and over.  Just this morning, I was approached by a task team member who pointed out a price increase on a Cabela’s brand item that had the price printed on it.  The price was going up from $19.99 to $24.99.  He said he could make a sign for them and then I could cut off the old price or mark it out with a sharpie or put a sticky tag over it.  I told him it felt dishonest to me and that decision was above my pay grade.   I am aware that retail profitability is a strategic focus area, but that kind of price manipulation is either deceptive or greedy (or both).  They will probably be on “sale” next week for $19.99.

A simple policy of everyday reasonable pricing ( a dollar or two less than suggested retail on name brands and consistent reasonably competitive pricing on store brands) would have to be more profitable and honest in the long run.  Raising and lowering prices here and there every week just creates more work and more room for mistakes.  I’m not suggesting never to change a price, but it seems to be completely excessive and unproductive.  Yes, we can have sales, but remember to keep it simple, clear and honest.

A policy of price-matching is OK because it allows the serious shopper the luxury of doing the work.  If they would rather buy from us, let them.  These cases are fairly rare compared to the amount of profit lost because we can’t get our floor pricing to match the computer pricing.  

Cabela’s customers shop at Cabela’s for the experience, the customer service, the quality of products.  Price is not the first reason people shop here.  We don’t have to play price war games with ourselves here.  It’s a waste of time, energy and money and it is not customer friendly.

scheduling

Employee Insights

Updates from the bottom rung

Karin Allen

Cabela’s Outfitter • Gifts & Fudge - Grand Junction • March 29, 2013

“EMPLOYEES ARE KEY TO THE SUCCESS AND FUTURE OF OUR GREAT COMPANY. WE KNOW THAT TO SUCCESSFULLY ENGAGE, CHERISH AND IMPRESS OUR CUSTOMERS, WE MUST HAVE ENGAGED EMPLOYEES.”

Tommy Millner

CEO

                 Scheduling

“Our managers are spending over 6 hours a week on scheduling.” -Jessie

                                                  Work - life  balance

Each Outfitter has his own passions, his own needs. Diversity is the spice of life.

At this month’s town hall meeting, Jessie correctly listed scheduling as the employees’ top concern.  He explained that the managers work from a computer generated schedule and that they are spending over 6 hours of their work week adjusting that schedule.  He mentioned work-life balance.  He told us that over 600 work hours go unfilled each week because people call in sick (inconveniencing their fellow outfitters).  I remember Mary Jo mentioning once at a morning meeting how just many schedule change requests cross her desk (a lot).  It’s obvious something’s wrong with this picture.  The excuse  is, “It’s retail.  We have a lot of hours to cover”.  “Open availability” is the corporate catch phrase that is unraveling  respect for the individual.

Core Value: Respect for individuals

If respect for individuals were taken into consideration by the scheduling gods, then a seemingly random and painful rotation with somewhere between 10 and 20 days advance notice would be illegal.

How can you plan your life?  When do you make appointments if you don’t even have one regular day off?  There is no reason  for this lack of respect.  The employees complain, shake their heads, and lose respect for management in return.  Everyone thinks they could do it better. (I heard it in the break room).  

Personally, I work part time and have fixed my availability sheet so that I have two days off in a row.  I did not apply for full time because full time people rarely get two days off in a row.  They might get a weekend day off on occasion.  Sometimes they work 6 to 8 days in a row because it crosses two separate work weeks. Even with the parameters I’ve set, my short work week exhausts me due to things like working back to back shifts - late nights and early mornings.  I’m constantly amazed whenever my schedule comes out.  I can never guess what it will be.  My most recent schedule didn’t even have me making fudge Monday morning or any day the week before Easter!  Is my manager a moron?  No, the scheduling is unnecessarily  complex.

A Simple Solution: When you hire great people and you treat them with respect, it is the first key to having engaged employees.

 It just makes sense to give people regular hours.  It makes it easier to plan ahead.  It makes it easier to schedule.  There will always be exceptions, that’s the nature of life, but I think the result would be less “lost hours” and probably less trading of hours. .  When you post a job and you can post what hours are expected and how much it pays, HR will have more relevant applicants and less to weed out in the hiring process.  

Our work force is a diverse group in many ways.  I’m impressed most with the diversity in age.  We have Outfitters in our store that range from young students to men and women in their 70’s and 80’s.  With this kind of diversity comes diverse availabilities.  In general, students want to work weekends and evenings, older people probably have the most flexibility, but that doesn’t mean they want to work an insanely diverse and flexible schedule.  It means they can fill in when needed on a regular basis.  Balancing family life is particularly tricky and in a caring system,  hours could be scheduled to coincide with school schedules as well.  

• Hire key full time people to work specific regular shifts - openers & closers
• Hire part time workers to fill in the regular gaps - early, late, lunch hours, days off

It’s not rocket science.