Retail managers are responsible for the profitable operation of retail trade establishments. They oversee the selling of food, clothing, furniture, sporting goods, novelties, and many other items. Their duties include hiring, training, and supervising other employees, maintaining the physical facilities, managing inventory, monitoring expenditures and receipts, and maintaining good public relations. Retail managers hold about 2.2 million jobs in the United States.
History of Retail Manager Career
In the United States, small, family-owned stores have been around for centuries. The first large chain store began to operate in the late 19th century. One of the aims of early chain stores was to provide staples for the pioneers of the newly settled West. Because chain store corporations were able to buy goods in large quantities and store them in warehouses, they were able to undersell private merchants.
The number of retail stores, especially supermarkets, began to grow rapidly during the 1930s. Stores often were owned and operated by chain corporations, which were able to benefit from bulk buying and more sophisticated storage practices. Cheaper transportation also contributed to the growth of retail stores because goods could be shipped and sold more economically.
Unlike the early family-owned stores, giant retail outlets employed large numbers of people, requiring various levels of management to oversee the business. Retail managers were hired to oversee particular areas within department stores, for example, but higher-level managers also were needed to make more general decisions about a company’s goals and policies. Today, retailing is the second largest industry in the United States, employing more than 23 million people.
The Job of Retail Managers
Retail managers are responsible for every phase of a store’s operation. They often are one of the first employees to arrive in the morning and the last to leave at night. Their duties include hiring, training, and supervising other employees, maintaining the physical facilities, managing inventory, monitoring expenditures and receipts, and maintaining good public relations.
Perhaps the most important responsibility of retail managers is hiring and training qualified employees. Managers then assign duties to employees, monitor their progress, promote employees, and increase salaries when appropriate. When an employee’s performance is not satisfactory, a manager must find a way to improve the performance or, if necessary, fire him or her.
Managers should be good at working with all different kinds of people. Differences of opinion and personality clashes among employees are inevitable, however, and the manager must be able to restore good feelings among the staff. Managers often have to deal with upset customers, and must attempt to restore goodwill toward the store when customers are dissatisfied.
Retail managers keep accurate and up-to-date records of store inventory. When new merchandise arrives, the manager ensures items are recorded, priced, and displayed or shelved. They must know when stock is getting low and order new items in a timely manner.
Some managers are responsible for merchandise promotions and advertising. The manager may confer with an advertising agency representative to determine appropriate advertising methods for the store. The manager also may decide what products to put on sale for advertising purposes.
The duties of store managers vary according to the type of merchandise sold, the size of the store, and the number of employees. In small, owner-operated stores, managers often are involved in accounting, data processing, marketing, research, sales, and shipping. In large retail corporations, however, managers may be involved in only one or two of these activities.
Retail Manager Career Requirements
You will need at least a high school education in order to become a retail manager. Helpful courses include business, mathematics, marketing, and economics. English and speech classes are also important. These courses will teach you to communicate effectively with all types of people, including employees and customers.
Most retail stores prefer applicants with a college degree, and many hire only college graduates. Liberal arts, social sciences, and business are the most common degrees held by retail managers.
To prepare for a career as a retail store manager, take courses in accounting, business, marketing, English, advertising, and computer science. If you are unable to attend college as a full-time student, consider getting a job in a store to gain experience and attend college part time. All managers, regardless of their education, must have good marketing, analytical, communication, and people skills.
Many large retail stores and national chains have established formal training programs, including classroom instruction, for their new employees. The training period may last a week or as long as one year. Training for a department store manager, for example, may include working as a salesperson in several departments in order to learn about the store’s operations.
To be a successful retail manager, you should have good communication skills, enjoy working with and supervising people, and be willing to put in very long hours. Diplomacy often is necessary when creating schedules for workers and in disciplinary matters. There is a great deal of responsibility in retail management and such positions often are stressful. A calm disposition and ability to handle stress will serve you well.
Exploring Retail Manager Career
If you are interested in becoming a retail manager, you may be able to find part-time, weekend, or summer jobs in a clothing store, supermarket, or other retail trade establishment. You can gain valuable work experience through such jobs and will have the opportunity to observe the retail industry to determine whether you are interested in pursuing a career in it. It also is useful to read periodicals that publish articles on the retail field, such as Stores Magazine, published by the National Retail Federation.
There are about 2.2 million retail managers in the United States, and about one-third are self-employed (many are store owners). Nearly every type of retail business requires management, though small businesses may be run by their owners. Wherever retail sales are made there is an opportunity for a management position, though most people have to begin in a much lower job. The food industry employs more workers than nearly any other, and retail food businesses always need managers, though smaller businesses may not pay very well. In general, the larger the business and the bigger the city, the more a retail manager can earn. Most other retail managers work in grocery and department stores, motor vehicle dealerships, and clothing and accessory stores.
Many new college graduates are able to find managerial positions through their schools’ placement service. Some of the large retail chains recruit on college campuses.
Not all store managers, however, are college graduates. Many store managers are promoted to their positions from jobs of less responsibility within their organization. Some may be in the retail industry for more than a dozen years before being promoted. Those with more education often receive promotions faster.
Regardless of educational background, people who are interested in the retail industry should consider working in a retail store at least part time or during the summer. Although there may not be an opening when the application is made, there often is a high turnover of employees in retail management, and vacancies occur frequently.
Advancement opportunities in retailing vary according to the size of the store, where the store is located, and the type of merchandise sold. Advancement also depends on the individual’s work experience and educational background.
A store manager who works for a large retail chain, for example, may be given responsibility for a number of stores in a given area or region or transferred to a larger store in another city. Willingness to relocate to a new city may increase an employee’s promotional opportunities.
Some managers decide to open their own stores after they have acquired enough experience in the retail industry. After working as a retail manager for a large chain of clothing stores, for example, a person may decide to open a small boutique.
Sometimes becoming a retail manager involves a series of promotions. A person who works in a supermarket, for example, may advance from clerk, checker, or bagger to a regular assignment in one of several departments in the store. After a period of time, he or she may become an assistant manager and eventually, a manager.
Salaries depend on the size of the store, the responsibilities of the job, and the number of customers served. According to the U.S. Department of Labor, median annual earnings of supervisors of retail sales workers, including commission, were $32,720 in 2004. Salaries ranged from less than $20,110 to more than $58,440 per year. Median annual earnings of grocery store managers in 2004 were $31,360, and managers of clothing stores earned $30,660. Those who managed home building supply stores ranked among the highest paid at $34,210. Managers who oversee an entire region for a retail chain can earn more than $100,000.
In addition to a salary, some stores offer their managers special bonuses, or commissions, which are typically connected to the store’s performance. Many stores also offer employee discounts on store merchandise.
Most retail stores are pleasant places to work, and managers often are given comfortable offices. Many, however, work long hours. Managers often work six days a week and as many as 60 hours a week, especially during busy times of the year such as the Christmas season. Because holiday seasons are peak shopping periods, it is extremely rare that managers can take holidays off or schedule vacations around a holiday, even if the store is not open on that day.
Although managers usually can get away from the store during slow times, they must often be present if the store is open at night. It is important that the manager be available to handle the store’s daily receipts, which usually are put in a safe or taken to a bank’s night depository at the close of the business day.
Retail Manager Career Outlook
Employment of retail managers is expected to grow more slowly than the average for all occupations through 2014. Although retailers have reduced their management staff to cut costs and make operations more efficient, there still are good opportunities in retailing. Internet stores and e-commerce ventures will present many new opportunities for retail managers, for example. However, competition for all jobs will probably continue to increase, and computerized systems for inventory control may reduce the need for some managers. Applicants with the best educational backgrounds and work experience will have the best chances of finding jobs. There will always be a need for retail managers, however, as long as retail stores exist. Retail manager positions are rarely affected by corporate restructuring at retail headquarters; this has a greater impact on home office staff.