If I were to point out a retailer for its world-class best-practices, that would be the Swiss retailer MIGROS. Its great products and great communication have make it a true Swiss icon, but it is its long term vision for profitability and sustainability that have made the Migros model a reference for its operations, customer service and employee relations.
Comparing the Spanish Mercadona to the Swiss retailer, I came up with some interesting commonalities, that could well explain the success of the Spanish retailer.
a) Both retailers have few references per square meter. Penetration of Private label is very high and brands are limited to leader products. This “prescription” approach is much appreciated by consumers, who see the retailers as the best value-for-money option, without having to sacrifice the sporadic “treats” provided by brands.
b) Both retailers train their employees to be able to assume functions outside of their traditional functions, so that employee productivity is not tied to store traffic.
c) Both retailers engage their employees on long lasting working contracts. In the case of Migros, employees become members of a Cooperative, and in the case of Mercadona, a striking 85% have fixed contracts. This maintains employees motivated and impacts employee rotation positively!
In a nutshell, the above points help minimize operational costs in the long term, while maximing its bottom line and customer service levels.
No comments:
Post a Comment