Retail Refugees

Recently saw news how one traditionally successful retailer in the USA is dealing with the troubled economic situation… “Luxury retailer Intermix is among those feeling the effects of the recession. The Daily has learned that in addition to scaling back on staff headcount, the company has cut salaries of all employees (including those in corporate positions) by 18%. In a store meeting last week, Intermix owners Haro and Khajak Keledjian announced that they would not be closing any of the company’s over 20 stores. Instead, they will cut back on buying orders and company spending–meaning no annual holiday party this season.”

I think it is important for retailers to see that there are several possibilities in “scaling back” from cancelling a Christmas party to reducing inventory.  It should be said though, that I do not endorse cutting salaries of regular employees.  Though it may seem like it is one of the only options, remember that these employees are your front line to sell and if by de-motivating them (through cutting salaries) you walk a fine line between pragmatism, and lowered service standards.  That being said, there is no excuse for sub-par work on the sales floor.