Crap Management
My heart sank this morning when I woke to hear the news that Marks and Spencer are laying off 7000 people, that's another 7000 people to add to all the other thousands of people laid off in the retail sector in the recent months.
I don't want to imagine how it must feel when you get the news that your life's work is going to end because of mistakes that the senior management has made in not reacting to the new ways of shopping.
What's going on? When you read the press releases, you see words like online, the Internet, and customers spending habits have changed.
For years I have been writing articles in the industry publication 'Retail Week' about these very subjects. Writing about how retailers aren't paying attention to customers, writing about how retailers don't listen to their staff, writing about how retailers don't understand what's going to happen in the future.
COVID has just accelerated what was going to happen anyway; it's only brought it forward quicker. They have only themselves to blame; you can't blame the current virus for the downfall of retailing.
Amazon, eBay and others are doing very well in the current climate, and the ironic thing is, Amazon is not only doing very well with their online business, but they are moving into the High Street with new concept stores.
The only thing that retailers have done is read about how Amazon is going to take business from them. They've probably read these articles and had a good chat about what they've read.
They should have learnt from the car manufactures. They were not going to sit there and watch new upstarts like Tesla come and take their business from them, at the same time as selling petrol and diesel cars, they worked on electric cars that will compete with Tesla. That's what retailers should have done.
Who's to blame for this mess? I blame the boards of these big retailers. I doubt if any of them have worked a day on the shop floor, I doubt if any of them dare to stand by the door, and ask people leaving without a bag why they did not buy anything today.
One problem with senior management is that when they get paid, they have money left over once they've paid their bills. They don't understand what it's like when their customers have got nothing left over once they've paid their mortgage and their bills. They don't have empathy; they need to understand what their customers feel, only then will they be able to change the dynamics of their business.
What should the people that have been laid off do? They should do what they are doing in Belarus and Lebanon and demonstrate outside the head office of their employer. They should demand that the people running their business should come out and talk to the people that now don't have a job; they should be accountable. They should talk about why they didn't pivot in time.
It sounds harsh but imagine what it's like not having a salary each month. I'm sure the 7000 people would feel better if the board offered to take a big pay cut, what's wrong with that?
Spot on Ajaz these people see management as a right as opposed to a responsibility We need managers to take their role as managers seriously
Consultant, Non Executive Director and Mentor to start ups and growing SMEs
4 年Hi Ajaz Another thought - provoking article from a self - confessed retailer Regards Colin
Should we also be worried that the likes of the US giants Ebay and Amazon, who are clearly ahead of the game, pay less tax in this country?
Professor of Operations and Supply Chain Management
4 年The more you have, the more you can loose, no wonder the car industry is pivoting with the advancements in technology and fast tracking in power generation!