New approaches to retail training

“I knew as soon as I saw the ad that it was just what I was seeking,” said Ellen Yoakam, owner of Costume Gallery in Jackson. She signed up for the Jackson Retail Success Academy at the first opportunity.

Yoakam is one of the dozen new “students” attending the 10-week course on retail skills that started in April—a collaborative effort of seven groups including the City of Jackson. Classes are held from 6 to 9 p.m. Tuesdays at Spring Arbor University’s downtown campus.

Yoakam earned a business degree, but she had worked in other positions for years before becoming a retailer.

“It wasn’t until I was actually running my own store that I realized how much I still needed and wanted to learn about the practical aspects of business that they don’t necessarily cover in business school.”

Jackson’s program and others like it are a new approach to providing retailers with the training they or their staff need to excel in today’s competitive economy.

In Detroit, a Hospitality and Retail Career Center opened its doors in October, aimed more at preparing the area’s workforce for jobs in retail and at helping retailers find well-trained employees for their stores.

And the National Retail Federation Foundation—the educational and research wing of the NRF—is exploring the needs and interests of Michigan retailers in skills training. It has established Retail Skills Centers in 11 states and is working with developers, employers and community groups to explore training options for Southeast Michigan.

The foundation currently offers opportunities for retail businesses of all sizes and their employees to receive training—and even certifi- cation—in retail skills through its website. Skills training and assessments in the areas of sales, customer service and retail management are available online through NRF University wired (www.nrfuniversitywired.com).

These efforts reflect a growing interest in improving the way retailers gain and enhance the professional skills that lead to success.

More and better opportunities for staff training also address concerns in the retail industry over improving customers’ shopping experiences. Poor interactions between store staff and shoppers topped the list of reasons for shopper annoyance, according to a recent series of studies conducted by the Verde Group, a retail research firm in Toronto.

If people applying for retail positions are not walking in with retail skills and training, and if thoroughly training them is a drain on the time and efforts of retailers and their managers, these efforts to address retailers’ training needs could supply a valuable service that gives retailers who use them a competitive edge.

Jackson’s success story
The Jackson Retail Success Academy was designed for retailers who have been in business five years or less. Participants study the business with experts and experienced, successful retailers, covering eight topics, including financial management, marketing and inventory management.

Other organizations involved in the planning of the program include Midtown Association, Downtown Development Authority, Enterprise Group of Jackson, Small Business & Technology Development Center and Jackson Community Development Department.

Mindy Bradish, president of the Greater Jackson Chamber of Commerce, said the academy is for those who may know their product or service but not a lot about retail or business in general. Lessons include business administration, inventory management, financials, marketing and advertising, human resources and customer service.

Tuition is $750. But those who graduate from the program by attending nine of the 10 sessions will receive $400 to help market or advertise their business, $250 to attend a trade show or join a trade organization, and one-year memberships to the chamber and Midtown Association.

Bradish recognizes that the tuition is a significant investment for most small retailers, but points out that most of the tuition is returned to the retailers in the form of investments in their business. She estimates that the actual value of this program is more than $6,000.

“The goal is to give these newer retailers the tools they need,’’ said Phil Wrzesinski, president of the Midtown Association and The Toy House. He will teach the lesson on marketing and advertising.

Wrzesinski is excited about the format of the course, which combines a traditional academic approach with hands-on learning and discussion. For each topic, the first week will offer a lesson or overview from an expert—either a professor or a retailer with expertise in the field—and the second week will follow up with a workshop or roundtable discussion, where real-life retailers share their experiences.

Participants will be given homework. For the marketing lesson, for example, students might be assigned to research their niche market and design an ad.

In the second session on that topic, they’ll receive comments from their classmates and experienced retailers. Upon completion of the program they get the money to buy an ad.

Business owners will also get two mentors, one in the public sector, such as a person at the DDA or chamber, and one in the private sector, such as a fellow retailer. These mentors remain available to them after classes end.

Yoakam was impressed when she saw the topics covered and retailers who would teach the lessons. She is looking forward especially to the mentoring opportunity that comes with participation.

“So often I have questions or ideas and just need someone who knows business to bounce my ideas off and get constructive feedback.”

Bradish thinks the program would be valuable in other cities and would be willing to help interested groups replicate it. If the interest is there, the program might be offered again in Jackson in the future.

Development in Detroit
In Detroit, a new Hospitality and Retail Career Center opened in October 2007. It is the latest in a long-term effort—on the part of the workforce and business development communities—to help retailers in the city by providing support for their workforce issues.

Goodwill Industries of Greater Detroit is the lead agency for the program and will process referrals and facilitate “soft skills” training—areas like general problem solving and communication and interpersonal skills. Wayne County Community College is the lead education agency and the training site host.

CVS/pharmacy provides retail training for the program. For the Hospitality area, the American Hotel & Lodging Association’s Education Institute has developed training materials and will oversee the professional certification process.

The program’s goals include having 500 people receive a career plan, certification in various hospitality or retail areas and job placement assistance, along with retention and support services after the hire. Program planners hope to have 81 percent of participants attain certification.

Students who come to the center interested in retail careers train in the Learning Center on the campus of Wayne County Community College, in a mock-up of a CVS store that looks and works like a real store, at least from the employee’s point of view. They receive training just as if they were a new hire at a CVS store.

“We realize that not all people plan to work in a CVS, but this gives them training in basic retail skills—handling transactions, customer service and others—that are transferable to other retail settings,” said Rebeca Velazquez, manager of the career center.

For those who successfully complete the program and find a retail job, the center offers continued support, which makes workers more likely to succeed.

“Our students are seeking careers in retail, not just a retail job,” said Velazquez.

One focus of the program is to encourage people seeking employment assistance to consider the potential of retail—not just as a temporary or part-time job but as a fulfilling career with possibilities for advancement.

Both the workforce development and economic development community—agencies such as Detroit Workforce Development Department, Michigan Works and the Detroit Economic Growth Corporation—help employers find skilled workers or provide the training to help prepare potential workers for the jobs they seek.

Olga Savic, with the Detroit Economic Growth Corporation, works to attract retailers to Detroit.

“Retailers sometimes have misperceptions about what it’s like to do business in Detroit, including a concern about finding skilled and talented staff,” Savic said. “We want to get the message out to retailers that whatever their questions and concerns about their workforce needs, we can help them by connecting them to programs like the Hospitality and Retail Center.”

“Part of the challenge is encouraging more Detroiters to consider retail as a rewarding career path, with opportunities for retail management or entrepreneurship,” said Savic.

“The Hospitality and Retail Center can help even skilled workers obtain sales and customer service training. A lot of people never get this training, or they learn it on the job, at the cost of that retailer’s time and energy. These are skills that can be used throughout a person’s career.

“Our goal is to make sure that every retailer that comes to town is successful from day one.”

This article was written by Amy Buttery, Michigan Retailer staff writer.