Page 164 - DMGT551_RETAIL_BUSINESS_ENVIRONMENT

Unit 8: Learning and Attitude

Notes

Case Study Developing a Learning Strategy

ellread is a high street retailer established in 1993 as a single bookshop but
which has since grown rapidly and is now present on many of the UK’s high
Wstreets and in many shopping centres. Until 2005, Wellread served only the
book market – particularly, specializing in children’s books – but following the
appointment of a new chief executive the company increasingly diversified into a number
of ‘related’ areas such as music, DVDs and stationery. These areas have grown to represent
a substantial part of each store. Furthermore, larger Wellread stores now have cafes where
customers are encouraged to browse books before they buy.
Until 2008, Wellread experienced strong growth and increasing market share in the book
retailing sector. Since then, however, growth has slowed considerably even when
accounting for a decrease in consumer spending during the recent economic downturn.
More worryingly, market share has begun to recede and Wellread is losing out to its high
street competitors, larger retailers who sell bestsellers at marked-down prices and online
book sellers. To understand the deeper reasons for this decline, Wellread commissioned
market research to explore consumer’s perceptions of the store and what shoppers wanted
from a book retailer. The results were mixed. The research found that Wellread rated
highly on the following criteria: friendly staff and welcoming atmosphere. Moreover, the
annual customer surveys show that customer service was rated highly among regular
shoppers at Wellread, many reporting that they know staff by name and often drop by for
coffee and to browse the books. The market research also found, however, that Wellread
was rated worse than its competitors on staff knowledge (particularly in the areas of
music and film), the range of titles held and speed of service. Of particular concern to the
company is the fact that the high levels of ‘footfall’ at Wellread stores appears to translate
into comparatively low sales volumes.

The company also recently conducted its first ever employee attitude survey which asked
employee’s opinions about a wide range of issues, including the company itself, their
jobs, why they chose to work for Wellread and what they felt they bring to the company.
The survey showed that a core of workers in each store had been with Wellread for a
number of years, albeit alongside a quite substantial transient workforce. These long-
term employees appear to be knowledgeable and passionate about books, committed and
often highly-qualified. Many were concerned, however, about developmental
opportunities within the company. Morale among staff appears to be high, although this
was largely explained by an apparent loyalty to their colleagues and to their store manager.
One respondent commented that ‘I don’t really see myself as a Wellread employee, just an
employee of this particular store’.
In keeping with the relaxed atmosphere that the company seeks to develop within its
stores, it advocates a paternalist approach to employee management. Commensurately,
the company allows a fair degree of autonomy to store managers in how staff are managed
at a local level and whilst it promotes regular performance appraisals it is aware that
some managers take this process less seriously than others. Where they are conducted
they are generally informal meetings used for employees to raise concerns or to make
suggestions. Typically, no formal records are kept regarding appraisals. Wellread has
always recognised that business success relies on good customer service and the focus of
employee induction has been to instil in employees the importance of creating an accessible
shopping environment which runs counter to the popular perception of bookshops as
Contd...

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