Page 24 - DMGT551_RETAIL_BUSINESS_ENVIRONMENT

Unit 1: Introduction to Retail Environment

Notes

Case Study Developing a Career Path in Retail

Introduction
Harrods of London is a British institution. It is probably the most well-known and respected
retail store in the world. For 162 years, Harrods has built its unique reputation supported
by its key brand values - British; Luxury; Innovation; Sensation; Service. Harrods employs
approximately 5,000 people from 86 different nationalities who deal with up to 100,000
customers a day at peak times.

Harrods needs employees who can face the challenges that its reputation and standards
bring. It needs people who are looking for an exciting and rewarding long-term career
with responsibility and prospects. Its challenge is to find (and retain) employees with the
right mix of skills and abilities, who can be developed to become the managers of the
future.
To achieve this, Harrods has to counter some of the negative perceptions about working
in retail. Working in a shop has traditionally been seen as low-skilled - with long hours,
poor pay and little chance of promotion. However, because quality is key at Harrods,
employees are well-paid, respected and have clear career paths open to them. Senior
managers at Harrods have come from all walks of life and started out with various levels
of qualifications. All have benefited from development opportunities provided by the
company.
The importance of training and development
Training and development is vital to any business. Its purpose at Harrods is to better the
performance of employees to enable Harrods to meet its business goals. For example, at
Harrods the Sales Academy develops employees’ sales skills, leading to increased sales
when they return to the shop floor. Allowing employees to acquire new skills, expertise
and qualifications supports employee progression which leads to increased motivation.
This supports Harrods’ retention strategies.
Training is about gaining the skills needed for a job. These may be learned at the place of
work (on-the-job) or away from work (off-the-job). On-the-job training tends to be more
cost-effective and relevant. However, off-the-job training is usually carried out by
professional trainers. It also occurs away from the distractions of work. Training tends to
have very specific and measurable goals, such as operating an IT system or till,
understanding a process, or performing certain procedures (for example, cashing up).
Development is more about the individual - making him or her more efficient at a job or
capable of facing different responsibilities and challenges. Development concentrates on
the broader skills that are applicable to a wider variety of situations, such as thinking
creatively, decision-making and managing people. In short, training is typically linked to
a particular subject matter and is applicable to that subject only, while development is
based on growing broader skills which can be used in many situations.
Harrods employees come from diverse backgrounds and different nationalities. They
have differing levels of competency, education and experience. Harrods offers
comprehensive Learning and Development opportunities. These opportunities are offered
at a variety of levels to suit the needs of all Harrods employees. These range from workshops
for Sales Associates and Warehouse Operatives to developmental programmes for senior
managers.
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