METRO: Is the Gossip True?

METRO: Is the Gossip True?

“Some 24-hour stores will no longer be 24-hour stores,” said Metro Chief Executive Eric Le Fleche on a conference call recently reported. “We have to manage the hours the best we can without reducing customer service.” In order to counteract the financial loss, it plans to “scale back hours at some stores” in light of the new rules.

Shutting the 24-hour stores?

Genius!! Costs go up (re: wage increases) so let’s close stores to lower wage costs and reduce our sales to save money.

Here’s how the theory works…Fewer stores = we pay less people BUT sales go down (we don’t need those sales anyway). See? It all works out…shut down stores and problem solved: NO SALES = NO WAGE COSTS

Brilliant!!….Give those Execs a bonus!!!

And why? Because challenging the buyers to find higher margin products to sell, challenging the supply chain to keep the shelves filled and marketing to deliver cutting edge programs to increase sales are no longer options? Asking the landlords to reduce rent is another option…or is it just too much work to offset the costs?

Do like every small business does when costs go up: they find ways to SELL MORE.  Geez maybe the staff who is getting paid more might even buy more from you?

Nope: throw in the towel. It’s too hard. Shut down stores.

Retail is not run by REAL Retailers is the problem: not minimum wage raises. The Execs simply don’t have the skills and imagination to create a work flow solution and STILL MAKE MONEY.

Written by: Suzanne Sears, President of Best Retail Careers International Inc.
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