Retail Business Job Sector Factsheet The retail job sector covers a huge range of employment. Retail is mainly about selling new and used goods in a wide range of retail outlets such as stores and on the rapidly expanding internet market. The retail business also includes its supply chains – the sourcing, supplying, purchasing, packaging, marketing and delivery of the right goods to sell to customers. To make it easier to find the information you need for your career planning we have split this wide sector into the main job areas of: Store Operations on pages 2 – 3. Buying on page 4. Customer Contact Centres on page 5. Marketing on pages 6 – 7. Logistics on pages 8 – 9. For each job area you’ll be able to find out more about types of jobs and how much people earn. Retail businesses also employ people in business, administration, finance and information technology jobs to support large organisations. You can find out more about jobs in these sectors in the business, administration and finance and the information technology factsheets. Plus at the end of this document, on pages 10 to 17, we’ve put together information about the whole retail business sector including: o The ways into retail. o The job market. o Future trends. o Website addresses of specialist sites that you can explore if you’d like to find out more. 1 Store Operations Most retail jobs are in store operations. Jobs include management roles such as supervisor and retail manager and work on the shop floor such as a sales assistant and checkout operator. Examples of these jobs include: Retail managers are in overall charge of a retail outlet. This could be a department store, local or national chain store, supermarket or an independent shop selling goods such as clothes, books, wine, gifts or electrical items. In large stores, there may be more than one manager, each responsible for a specific department, and there will also usually be other managerial staff at a lower supervisory level working on the shop floor. Retail assistants deal with all aspects of retailing such as keeping displays looking good, restocking shelves, greeting customers, dealing with queries and sales, operating tills and barcode readers and keeping the retail outlet clean and tidy. Their work varies, depending on the type and size of the store. Checkout operators help customers, who have chosen their shopping, to pack and pay for their goods. They do a range of other duties including weighing and pricing some items such as vegetables, removing security tags, answering customers queries, checking age of customer when selling age-restricted products such as knives and reporting any problems or difficulties to their supervisors. They may also need to spend time away from their till, filling shelves, checking stock and working on a customer service desk. Personal shoppers are employed to give customers advice on the clothes and accessories that suit them. To do this they will carry out a consultation to find out as much as possible what the customer is looking for, what colours suit their skin and hair colouring and what styles suit their body shape. They would then take the customer around the store giving advice and selecting items for them to try. They would keep records for future visits and sales calls and also organise sales and delivery if needed. This section only includes a sample of jobs in store operations - other jobs include; stock replenishment assistant/stock control, department manager, floor manager, supervisors, and specialist sales assistants in areas such as bookselling, butcher, floristry, greengrocery and jewellery sales. 2 Want to know more? The information in this jobs section is a summary of what’s involved in each of the highlighted jobs and only a few jobs are listed to give a snapshot of this sector. You can also use the Next Step website https://nextstep.direct.gov.uk/Pages/home.aspx to find out about 100s of jobs and careers, including the ones listed above and many, many more…….. Pay 3 Retail Managers may earn from around £16,000 - £36,000 a year. Senior managers in charge of very large stores in some areas may earn up to £70,000. Retail Assistants may earn around £12,000 a year and with experience may be able to earn between £13,000 and £16,000. Checkout operators may earn around £12,000 a year and with experience may be able to earn £16,000 or more. Personal Shoppers may earn around £13,000 a year and with experience may be able to earn between £18,000 and £25,000. Buying Buying for retail businesses is about purchasing the best merchandise to sell making sure that the price, quality and availability are right. Buyers can maximise profits if they understand what will sell, and get it at the right price and in the best condition. Jobs in buying include: Retail buyers plan, select and buy the goods that are sold in retail businesses. Many buyers have a specialist area that they buy - for example buying the wines for a large chain of supermarket or clothes for a fashion chain. They need to be able to work out what the current trends and buying patterns are and search out new products and suppliers. Retail merchandisers negotiate prices with suppliers as they need to help to maximise profit. They liaise with retail buyers, who select the product ranges, to plan the range of goods to be sold. Merchandisers decide on the exact quantity of goods to order and determine specific stock levels for each retail outlet - often using computer modelling software to look at previous sales and predict future performance. They also work closely with marketing personnel to promote special offers and sales identifying products for promotion – often linked to supplier discounts. Smaller retailers may combine buying and merchandising roles in a general retail management position. Want to know more? The information in this jobs section is a summary of what’s involved in each of the jobs and only a few jobs are highlighted to give a snapshot of this sector. You can also use the Next Step website https://nextstep.direct.gov.uk/Pages/home.aspx to find out about 100s of jobs and careers, including the ones listed above and many, many more…….. Pay 4 Retail buyers and merchandisers may earn from around £20,000 - £30,000 a year and up to £55,000 with experience. Senior retail buyers and merchandisers may earn up to £70,000 a year. Customer Contact Centres Retail businesses, as well as banks and many other organisations, run contact centres. In retail they are usually part of a customer services department. Contact centres respond to and solve any problems raised by their customers whilst shopping from their websites or in their stores. They may replace products and/or refund or compensate the customer where a product or service did not meet the customer’s expectation. Contact centre (or call centre) operators are employed to keep in regular contact with their customers by telephone, email, SMS messaging, online instant messaging and post. Contact centre operators may accept orders for home delivery, deal with payment for goods, and enquires or complaints about deliveries. They may help to solve technical problems with computer usage - for example customer problems with online services, or with products they have bought from the retailer such as an electrical or household appliance. Operators working in marketing or market research also work from call centres but in this case they initiate the calls. They contact a list of potential customers and cold-call them to sell products or obtain information. Want to know more? The information in this jobs section is a summary of what’s involved in each of the jobs and only a few jobs are highlighted to give a snapshot of this sector. You can also use the Next Step website https://nextstep.direct.gov.uk/Pages/home.aspx to find out about 100s of jobs and careers, including the ones listed above and many, many more…….. Pay 5 Contact centre (or call centre) operators may earn from around £13,000 £17,000 a year and around £20,000 with experience. Marketing Marketing is about influencing the behaviour of specific groups of people or organisations - for example by encouraging them to buy a new product or service. To do this they need to find out more about their target audience by commissioning market research and identify the message that they need to get across to their customers. Jobs in marketing can either be with: a large organisation such as a supermarket or department store chain marketing just for that business. a marketing agency - that would operate by winning commissions from a wide range of companies to market their product. Jobs include: Brand managers (or product managers) need to understand their customers, keep an eye on competitors, carry out research and create the right identity and brand loyalty for new products. Developing the right identity, and developing customer brand loyalty, includes getting the name and packaging of the product or range right and overseeing the advertising campaign. Marketing executives help to promote and sell fast-moving consumer goods and products to the public, usually via retailer. Fast moving consumer goods are usually high-volume, low-value items such as food, drink, confectionery and toiletries. Marketing executives would work alongside the brand or product manager to raise awareness of the product through advertising and in-store promotions. They would be expected to come up with fresh marketing ideas to promote their products and also write creative briefs for advertising agencies. Sales managers are employed to sell all sorts of products and services. They work in a sales team - organising a team of sales representatives and devising marketing strategies for the team to use to maximise sales and customer loyalty. They may work for a national retailer, or distributor, and their customers may be individuals, businesses, factories or retail outlets. They may be responsible for sales in a specific geographical area, nationally or even worldwide. This section only includes a sample of jobs in marketing - other jobs include; sales representatives, PR assistants and market researchers. Want to know more? The information in this jobs section is a summary of what’s involved in each of the jobs and only a few jobs are highlighted to give a snapshot of this sector. 6 You can also use the Next Step website https://nextstep.direct.gov.uk/Pages/home.aspx to find out about 100s of jobs and careers, including the ones listed above and many, many more…….. Pay 7 Brand managers/product managers may earn from around £28,000 a year and up to £45,000 with experience. A group brand manager can earn in excess of £65,000. Marketing executives, at graduate entry level, may earn around £22,500 a year and up to £65,000 with experience. A marketing director can earn in excess of £110,000. Sales Managers may earn from around £19,000 - £30,000 a year and up to £60,000 with experience. Senior sales managers may earn up to £100,000. Logistics Logistics is about the safe and efficient movement of products throughout the UK and abroad. A supply chain is set up to make sure that the goods are collected, stored, distributed and delivered in the right condition at the right time. Supply chains usually focus on specific areas such as clothing and footwear, electronics and electrical and food and drink. Jobs include: Distribution managers plan and manage the control and movement of goods or raw materials. They work with suppliers and warehouse managers to make sure that the right goods are delivered on time to a range of customers including retailers and manufacturers. Importers and exporters work for import/export agencies, freight-forwarding firms, or companies that handle their own export and import of goods. Importers deal with the procedures for bringing goods from other countries for sale in the UK, whilst exporters handle the procedures for taking goods out of the UK for sale in other countries. The main areas of work in import/export departments or agencies are related to administration, management and sales. Large goods vehicle drivers transport millions of tonnes of goods by road around the UK, as well as to and from the Continent. As well as driving according to strict safety and working time laws, drivers usually have to plan their schedule with road transport managers, make sure that their lorry is safely and securely loaded and unloaded, and delivery paperwork is completed. They may also have to refuel the lorry during a long journey and clean out after a delivery or at the end of a shift. Warehouse workers and managers make sure that their stock is stored in the right condition and place in the warehouse and that the correct items are packed and ready for collection when needed. Some goods need to be kept in closely monitored environments, for example fresh or frozen food that needs to be stored at specific temperatures to keep them fresh and safe. Workers and managers need to make sure that these conditions are maintained. Warehouse managers are responsible for the efficient running of the warehouse and are in charge of the workforce. Both workers and managers are likely to use computerised stock control systems. This section only includes a sample of jobs in logistics - other jobs include; transport planner, lift truck operative, freight forwarder and ship broker/air broker. Want to know more? The information in this jobs section is a summary of what’s involved in each of the jobs and only a few jobs are highlighted to give a snapshot of this sector. You can also use the Next Step website https://nextstep.direct.gov.uk/Pages/home.aspx to find out about 100s of jobs and careers, including the ones listed above and many, many more…….. 8 Pay 9 Distribution managers may earn around £19,000 a year and up to £30,000 with experience. Senior distribution managers may earn up to £60,000 a year. Importers and exporters may earn from around £11,000 - £15,000 a year and up to £35,000 with experience. Senior managers may earn up to £65,000 a year. Large goods vehicle drivers may earn around £15,000 a year and up to £30,000 with experience. Drivers of fuel, chemical or other specialist tankers may earn around £36,000 a year. Warehouse workers may earn around £12,000 a year and up to £20,000 with experience. Warehouse managers may earn from £18,000 a year and up to £45,000 with experience. Ways in to retail business Many jobs in the retail business do not set specific academic requirements although many employers prefer applicants for supervisory or management posts to have at least five GCSEs (A*-C), and A levels or equivalent qualifications. A number of jobs in the industry - for example marketing are mainly graduate entry. Experience of working with customers, especially in a retail environment, is also very important. Those working in the retail business are increasingly well qualified with 30% having a degree or postgraduate qualification. Only 2% have no qualifications at all. Useful qualifications include: Diploma in Retail Business or Business, Administration and Finance. BTEC certificate or diploma in retail NVQs in retail or logistics Foundation degree in retail management or logistics. Degree in retail management, marketing or logistics. As a guide, minimum requirements for entry onto a foundation degree course are one A level and three GCSEs (A*-C) or equivalent qualifications; for a degree course the minimum requirements are normally two A levels and five GCSEs (A*-C), or equivalent qualifications - for example an Advanced Diploma in Retail Business. Apprenticeships are a good way of entering the retail business sector and it may be possible to enter retail or logistics management through an Advanced Apprenticeship. In addition: Personal shoppers are usually expected to have worked in a fashion or beauty environment. Retail assistants who have demonstrated the right attributes and skills fill most vacancies. Retail buyer vacancies are popular and many entrants have a degree or a BTEC Higher National Certificate/Diploma (HNC/D). Relevant subjects include business studies, retail and distribution. It may be possible to enter retail buying via an Apprenticeship in retail, and undertake a buying or merchandising placement. Employers of retail fashion buyers may ask for fashion qualifications. The London College of Fashion runs a specialist two-year foundation degree in fashion buying and merchandising. The Fashion Access Programme (Fashion Business and Fashion Promotions Media) provides a one-year intensive study programme for entrants without formal academic qualifications or those wanting to change career direction. It can also prepare students for entry to the London College of Fashion's foundation degree in fashion buying and merchandising. Entrants to the Access programme need to show a broad interest in fashion, media, arts and current affairs. 10 Marketing jobs are very competitive and this means that many entrants to marketing roles, even for junior positions, have an HND, foundation degree or degree. Useful subjects include marketing, sales and business. Applicants with relevant work experience may be at an advantage. Logistics jobs involving driving and operating machinery may have age restrictions. An Apprenticeship in traffic office or wholesaling, distribution, warehousing and storage could also lead to opportunities in logistics management. Import/export jobs increasingly require qualifications. Many companies ask for at least four GCSEs (A*-C), including English and maths. Some companies may prefer A levels or equivalent qualifications. Larger companies often ask for a Higher National Diploma (HND), foundation degree or degree. Although any degree, foundation degree or HND subject is acceptable, courses that cover international trade, logistics, business studies or marketing may be an advantage. Qualifications or experience in using foreign languages are always in demand. The Diploma in retail business or business, administration and finance could be a useful starting point. For warehouse jobs a fork lift licence - for those aged 16 or over - can be helpful in getting warehouse work. Training courses lasting around three to five days are offered by independent training providers. In some warehouses, goods are colour coded, so colour vision tests may be given at interview. Apprenticeships in warehousing and storage leading to NVQ Level 2, and Advanced Apprenticeships leading to NVQ Level 3, may be available. For more information about the courses on offer locally for 14-19 year olds including the new Diplomas in retail business - why not check out your local area prospectus? Walsall - www.choosewalsall.com/home.aspx Wolverhampton – www.area-prospectus.com For courses in higher education check out the UCAS website - www.ucas.com For Apprenticeships check out vacancies on the National Apprenticeship site www.apprenticeships.org.uk 11 The Job Market The retail industry employs 2,.77 million people in England. Retail is the UK’s largest private sector employer. Within retail there are an estimated 286,000 UK retail businesses selling a wide range of products, employing from one person to thousands of people who do lots of different types of jobs. The current UK retail market is dominated by a comparatively small number of large retailers who have 500+ employees. These large retailers employ 65% of all people working in retail and have 69% of all the annual turnover of retail businesses. The largest numbers of businesses – making up 86% of retailers - employ less than 10 people. These small retail outlets employ 29% of the retail workforce and take 19% of annual turnover of retail businesses. Retail accounts for £325 billion in sales and one-third of all consumer spending. With more households using the internet, online retail is increasing at a rapid rate. A third of all those who work in the retail sector are below the age of 25 (the whole economy average is 25%). More than half – 58% of retail employees are female. Almost half - 49% - of those working in retail are part-time (the whole economy average is 25%) The current recessionary climate is affecting most areas of retail business however; certain sections of retail businesses, online retailers, major supermarkets and value/discount stores are showing signs of growth. Retail employers report that applicants often have the following skills shortages customer handling skills, technical, practical or job-specific skills and oral communication skills. Logistics is the UK’s fifth biggest industry employing more than 2 million people across 65,000 organisations. Logistics employers range from small companies to international logistics organisations and transport providers operating fleets of vehicles. There is currently a shortage of skilled workers in some areas. Jobs can be found throughout the UK. The distribution industry is one in which men predominate. Men account for around 7 out of every 10 jobs. Around 75 percent of employment in distribution is full-time. Part-time employment and self-employment each currently account for around 1 in 8 jobs. The retail business in the West Midlands 12 Retail in the West Midlands employs 219,165 people -9% of the all employment in the West Midlands. There are 24,790 retail business based in the West Midlands. This equates to 10% of all English retail businesses being based in the West Midlands. 83% of the West Midlands retail businesses have less than 10 employees. 60% of retail employees in retail in the West Midlands are female. 40% of employees working in retail in the West Midlands are part time employees. Retail employer report that applicants in the West Midlands often have skills shortages in technical, practical or job related specific skills and customer handling skills. Retail buyers and merchandisers Virtually all retailers and manufacturers employ someone to take responsibility for buying. In smaller retail businesses, it may be combined with other sales or marketing duties, or another retail management role. There are more applicants than vacancies. Many retail buying jobs are based in head offices, the majority of which are in London and south-east England. However, opportunities do exist in other parts of the UK such as the West Midlands. Contact centre (or call centre) operators There are jobs with large and small businesses. Contact centres are often sited on business parks outside city and town centres. Some companies base their contact centres abroad. There may be some opportunities to work overseas, setting up contact centres and training local staff. Marketing and Sales 13 Employers range from large companies and organisations to smaller businesses, and advertising and public relations agencies. Larger employers tend to be based around major UK cities, especially London, and the south east. Competition for marketing positions is high. Most enter marketing after gaining related work experience. Sales managers can be found in all job sectors not just the retail business. Other major areas of employment include finance, manufacturing, wholesale distribution and IT. There is a demand for skilled sales representatives and there are opportunities throughout the UK and overseas. Logistics The UK is a major trading nation and, as the global market is expanding, there are increasing opportunities for importers and exporters. The industry has been affected by the recession and there are currently fewer vacancies for qualified drivers. Figures from Skill Smart Retail LMI report – November 2010 14 Future Trends The majority of people who work in sales occupations are employed as sales assistants and check-out operators in retail outlets. Customer service occupations represent a much smaller but rapidly growing group. The growth of online retailing has increased the demand for applicants with excellent IT skills for contact centre/customer service vacancies. The division between wholesale distribution and retailing has become blurred with the rise of internet retailing - as it has become much easier for producers to sell directly to households, or retailers to control their own distribution networks. Household spending and retail sales are expected to recover as confidence returns on the back of a recovery in the housing market and stronger growth in real disposable income. This pick-up will underpin the recovery forecast for the consumer service industries generally. Figures from ’Working Futures 2010 -2020’ Warwick Institute of Employment Research. Figures also from Skill Smart Retail LMI report – November 2010. 15 Find out more about Retail Business General https://nextstep.direct.gov.uk/Pages/home.aspx You can use this site to find out about all the jobs in this sector in more detail. www.careersbox.co.uk A free national careers film library showing films of real people doing real jobs. www.diplomainretailbusiness.com The Diploma in Retail Business and careers information. www.direct.gov.uk/diploma The official government site about all the different diplomas. http://www.sscalliance.org/Home-Public/SectorSkillsCouncils/SSC_Contacts.aspx This site has a link to all sector skills councils. www.skillsmartretail.com The Sector Skills Councils for Retail Business - Skillsmart Retail, Skills for Logistics and the Institute of the Retail Motor industry. www.independentezines.co.uk/retailtherapy/ Retail Therapy is a bi-annual magazine produced by Skillsmart Retail in-conjunction with The Independent newspaper. www.retailtrust.org.uk/ The Retail Trust is the principle charity working in the retail industry offering help and guidance to people working in retail. www.cim.co.uk The Chartered Institute of Marketing. www.cips.org The Chartered Institute of Purchasing & Supply (CIPS). www.ciltuk.org.uk The Chartered Institute of Logistics and Transport (UK) (CILT(UK)), www.export.org.uk Institute of Export. 16 www.dsa.gov.uk Driving Standards Agency (DSA). www.rha.uk.net Road Haulage Association. www.ukwa.org.uk United Kingdom Warehousing Association (UKWA). Factsheet produced by Prospects, March 2012 17