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Retail Sales Worker Supervisors and Managers

Retail Sales Worker Supervisors and Managers

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1998-99 Occupational Outlook Handbook

Retail Sales Worker Supervisors and Managers


Nature of the Work
Working Conditions
Employment
Training, Other Qualifications, and Advancement
Job Outlook
Earnings
Related Occupations
Sources of Additional Information

Significant Points

Nature of the Work

In every one of the thousands of retail stores across the country, there is at least one retail sales worker supervisor or manager. Because the retail trade industry provides goods and services directly to customers, the retail supervisor or manager is responsible for ensuring that customers receive satisfactory service and quality goods. They also answer customers' inquiries and handle complaints.

Retail supervisors and managers oversee the work of sales associates and cashiers, and customer service, stock, inventory, and grocery clerks. (Some of these occupations are discussed elsewhere in the Handbook.) They are responsible for interviewing, hiring, and training employees, as well as preparing work schedules and assigning workers to specific duties. (Managers in eating and drinking places are discussed in the Handbook statement on restaurant and food service managers.)

The responsibilities of retail sales worker supervisors and managers vary, depending on the size and type of establishment, as well as the level of management. As the size of retail stores and the types of goods and services increase, these workers increasingly specialize in one department or one aspect of merchandising. Larger organizations tend to have many layers of management. As in other industries, supervisory-level retail managers usually report to their mid-level counterparts who, in turn, report to top-level managers. Small stores, and stores that carry specialized merchandise, typically have fewer levels of management.

Supervisory-level retail managers, often referred to as department managers, provide day-to-day oversight of individual departments, such as shoes, cosmetics, or housewares in large department stores; produce and meat in grocery stores; and sales in automotive dealerships. Department managers commonly are found in large retail stores. These managers establish and implement policies, goals, objectives, and procedures for their specific departments; coordinate activities with other department heads; and strive for smooth operations within their departments. They supervise employees who price and ticket goods and place them on display; clean and organize shelves, displays, and inventory in stockrooms; and inspect merchandise to ensure that none is outdated. Department managers also review inventory and sales records, develop merchandising techniques, coordinate sales promotions, and may greet and assist customers and promote sales and good public relations.

In small or independent retail stores, retail sales worker supervisors and managers not only directly supervise sales associates, but are also responsible for the operation of the entire store. In these instances, they may be called store managers. Some are also store owners.

Working Conditions

Most retail sales worker supervisors and managers have offices within the stores. Although some time is spent in the office completing merchandise orders or arranging work schedules, a large portion of a their workday is spent on the sales floor.

Work hours of supervisors and managers vary greatly among retail establishments, with work schedules usually depending on consumers' needs. Most managers and supervisors work 40 hours or more a week. This is especially true during holidays, busy shopping hours and seasons, sales, and when inventory is taken. They are expected to work evenings and weekends but usually are compensated by getting a weekday off. Hours can change weekly, and managers sometimes may have to report to work on short notice, especially when employees are absent. Independent owners can often set their own schedules, but hours usually must be convenient to customers.

Employment

Retail sales worker supervisors and managers who work in retail trade held about 929,000 wage and salary jobs in 1996. In addition, there were thousands of self-employed retail sales managers, mainly store owners. Although managers are found throughout the retail trade industry, establishments that employ the most are grocery, department, and clothing and accessory stores.

Training, Other Qualifications, and Advancement

Knowledge of management principles and practices, often an essential requirement for a management position in retail trade, is usually acquired through work experience. Many supervisors and managers begin their careers on the sales floor as sales clerks, cashiers, or customer service workers. In these positions, they learn merchandising, customer service, and the basic policies and procedures of the store.

The educational background of retail sales worker supervisors and managers varies widely. Regardless of the education received, business courses, including accounting; administration; marketing; management; and sales; as well as courses in psychology; sociology; and communication; are helpful. Supervisors and managers increasingly must be computer literate since cash registers and inventory control systems have become computerized.

Most supervisors and managers who have post-secondary education hold associate or bachelor's degrees in liberal arts, social science, business, or management. To gain experience, many post-secondary students participate in internship programs that are usually planned between individual schools and retail firms.

Once on the job, the type and amount of training available for supervisors and managers varies from store to store. Many national chains have formal training programs for management trainees that include both classroom and in-store training. Training may last from 1 week to 1 year or more, as many retail organizations require their trainees to gain experience during all shopping seasons. Other retail organizations may not have formal training programs.

Ordinarily, classroom training includes such topics as interviewing and customer service skills, employee and inventory management, and scheduling. Management trainees may be placed in one specific department while training on the job, or they may be rotated through several departments to gain a well-rounded knowledge of the store's operation. Training programs for franchises are generally extensive, covering all functions of the company's operation, including promotion, marketing, management, finance, purchasing, product preparation, human resource management, and compensation. College graduates can usually enter management training programs directly.

Retail sales worker supervisors and managers must get along with all types of people. They need initiative, self-discipline, good judgment, and decisiveness. Patience and a mild temperament are necessary when dealing with demanding customers. They must also be able to motivate, organize, and direct the work of subordinates and communicate clearly and persuasively with customers and other managers.

Individuals who display leadership and team building skills, self-confidence, motivation, and decisiveness become candidates for promotion to assistant store manager or store manager. Increasingly, a post-secondary degree is needed for advancement, because it is viewed by employers as a sign of motivation and maturity—qualities deemed important for promotion to more responsible positions. In many retail establishments, managers are promoted from within the company. In small retail establishments, where the number of positions is limited, advancement to a higher management position may come slowly. Large establishments most often have extensive career ladder programs and may offer managers the opportunity to transfer to another store in the chain or to the central office if an opening occurs. Promotions may occur more quickly in large establishments, but relocation every several years may also be necessary for advancement. Within a central office, sales supervisors and managers can become marketing, advertising, or public relations managers. These managers coordinate marketing plans, monitor sales, and propose advertisements and promotions. Supervisors and managers can also become purchasers or buyers, who purchase goods and supplies for their organization or for resale. (Both occupations are covered in other Handbook statements.)

Some supervisors and managers, who have worked in the retail industry for a long time, decide to open their own stores. However, retail trade is highly competitive, and although many independent retail owners succeed, some fail to cover expenses and eventually go out of business. To prosper, retail owners usually need good business sense and strong customer service and public relations skills.

Job Outlook

Because most jobs for retail sales worker supervisors and managers do not require post-secondary education, competition is expected for jobs with the most attractive earnings and working conditions. Candidates who have retail experience will have the best opportunities.

Employment of wage and salary retail sales worker supervisors and managers is expected to grow more slowly than the average for all occupations through the year 2006. Growth in this occupation will be restrained as retail companies place more emphasis on sales staff employment levels and increase the number of responsibilities their retail sales worker supervisors and managers have. Furthermore, some companies have begun requiring their sales staff to report directly to upper management personnel, bypassing the department-level manager. However, many job openings are expected to occur as experienced supervisors and managers move into higher levels of management, transfer to other occupations, or leave the labor force.

Projected employment growth of retail managers will mirror, in part, the patterns of employment growth in the industries in which they are concentrated. For example, faster than average growth is expected in grocery stores as they expand their selection of merchandise to accommodate customers' desires for one-stop shopping.

Unlike middle- and upper-level management positions, store-level retail supervisors and managers generally will not be affected by the restructuring and consolidating that is taking place at the corporate and headquarters level of many retail chain companies.

Earnings

Salaries of retail managers vary substantially, depending upon the level of responsibility; length of service; and type, size, and location of the firm.

Supervisors or managers of sales workers in the retail trade industry who usually worked full time had median annual earnings of $24,400 in 1996. The middle 50 percent earned between $16,900 and $34,400. The top 10 percent earned more than $50,400, and the lowest 10 percent earned less than $12,900.

According to a survey sponsored by the National Association of Convenience Stores, the average total compensation for assistant store managers in the U.S. and Canada ranged between $12,400 and $15,800 a year in 1996, depending on where the organization is located. Store managers received between $24,400 and $31,200 on average.

Compensation systems vary by type of establishment and merchandise sold. Many managers receive a commission, or a combination of salary and commission. Under a commission system, retail managers receive a percentage of department or store sales. These systems offer managers the opportunity to significantly increase their earnings, but they may find that their earnings depend on their ability to sell their product and the condition of the economy. Those managers who sell large amounts of merchandise often are rewarded with bonuses and awards and receive recognition throughout the store or chain.

Retail managers receive typical benefits and, in some cases, stock options. In addition, retail managers generally are able to buy their store's merchandise at a discount.

Related Occupations

Retail supervisors and managers serve customers, supervise workers, and direct and coordinate the operations of an establishment. Others with similar responsibilities include managers in wholesale trade, hotels, banks, and hospitals.

Sources of Additional Information


Information on employment opportunities for retail managers may be obtained from the employment offices of various retail establishments or State employment service offices.

General information on management careers in retail establishments is available from:
National Retail Federation, 325 7th St. NW., Suite 1000, Washington, DC 20004. Homepage: http://www.nrf.com
International Mass Retail Association, 1700 N. Moore St., Suite 2250, Arlington, VA 22209-1998. Homepage: http://www.imra.org

Information on management careers in grocery stores, and schools offering related programs, is available from:
Food Marketing Institute, 800 Connecticut Ave. NW., Publications Dept., Washington, DC 20006-2701.

Information about management careers and training programs in the motor vehicle dealers industry is available from:
National Automobile Dealers Association, Communications/Public Relations Dept., 8400 Westpark Dr., McLean, VA 22102-3591.

Information about management careers in convenience stores is available from:
National Association of Convenience Stores, 1605 King St., Alexandria, VA 22314-2792.

Information about management careers in service stations is available from:
Service Station Dealers of America, 9420 Annapolis Rd., Suite 307, Lanham, MD 20706.

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