Where Have All the Jobs Gone?
And Where to Find Them in the Future
Over the last two years our industry population has shrunk. Since June 2008 we have lost forty-four senior loss prevention positions and conservatively 10 percent of our general LP population. The economic downturn and technology's continued evolution have changed the retail landscape and cost jobs.
Outside of the few retail sectors that have benefited from the consumer shifts, the vast majority of the retail industry has been "streamlined" to a point where the executives who have jobs are
fearful to leave, and those without jobs are concerned that the jobs may never come back.
Today's market is changing the traditional paradigms for executives. Some retailers are staffing district and even single-unit LP positions with former regional and director-level managers. The
truth is that this market is not going to change any time soon, and in some sectors, the conditions may even worsen.
Managing the Economic Downturn
Retail America's ability to produce profits last year despite the overall economy came from improved expense and inventory controls. Reducing purchases and maintaining fewer SKUs caused
a not so subtle trickle-down financial impact on suppliers and their payrolls. On the other side of the coin, retailer's expense-control practices, such as eliminating relocation funding and reducing
training programs, cost jobs and froze careers while reducing career-development opportunities.
Part of the response to the economic crisis was to eliminate senior-level management where possible, freeze positions, and focus on store-level resources. In addition, retailers have accelerated a long-term trend in the business by continuing to increase the responsibilities of the remaining LP executives. These increased requirements are made all the more challenging as middle-level LP management staffing and support is reducedor eliminated.
Put it all together and the industry faces slowed or frozen career development with significantly fewer opportunities. Since almost all retailers have been impacted, looking elsewhere for career growth is challenging, to say the least. Given the high unemployment numbers, the lack of available positions, and a fearful employee population, what we have is one group that's too scared to look
for an opportunity and another group that's being forced to look at just about anything just to get back to work.
Presently retail sales year-to-date seem to be experiencing a moderate recovery. However, industry experts are only cautiously optimistic. With housing and unemployment still in significant
trouble, the current sales trend may not reflect a real recovery. We need to face the fact that the nation's retailers have learned how to operate profitably with their existing staffing levels, and with few exceptions, they won't be adding staff in the foreseeable future. So, while we may see a slight uptick in jobs in the third and fourth quarter of this year, it's still going to be years before we reach the level of employment that we all enjoyed in 2007.
Given all this, the question becomes, "Where are the jobs going to be and how do I advance my career?"
Advancing your Career
Advancing your career requires that you have a long-term strategy and that you make a personal investment in your education, your commitment to success, and your willingness to sacrifice. Opportunities to build your career may involve things like night school, increased travel, taking a risk with a new job, getting out of your retailing comfort zone, accepting a position for less than what you deserve, relocating, changing companies, working longer hours, or taking on additional responsibilities.
All of these actions will help, and just as important, they may make you more valuable should additional positions be eliminated in your company. The most important factor is that you assume
responsibility for your own career advancement. Don't delegate it to a mentor, expect another to manage it for you, or assume continued success. If your goal is to be a senior leader in the industry, then don't give up, stay focused, and keep pushing the envelope until you are satisfied with your level of achievement.
Finding the Jobs
When we consider the question as to where the jobs are going to be, normal turnover activity and related career opportunities will continue to occur. Plus, those retail operations that have benefited
from recent consumer shifts in shopping and spending habits will provide new growth.
In addition, in some companies the existing LP team will come up short either due to a lack of resources or an inability to respond effectively to the new retail realities. Some expanded or replacement LP staffing will result. Finally, with the ongoing reduction of upper- and middle-management positions in many companies, additional lower level store and field jobs will be available.
Of course, beyond the economy itself, one "wild card" that may negatively impact job availability is the ongoing Wal-Mart price war especially in the grocery segment where supermarket competitors are losing market share and, in some cases, closing stores.
One bright spot on the horizon for real job growth is in e-commerce and technology. The U.S. Bureau of Labor Statistics actually predicts a 22 percent growth in their "Investigator" classification, which includes LP, over the decade from 2008 to 2018. This is due to several factors, including demands resulting from increased litigation, the protection of confidential information and property, Internet criminal activity, expanding requirements for background investigations, identity
theft and related fraud, increased corporate espionage, and the growth of international financial activity worldwide. Applied to the retail world, this impacts e-commerce, database security, protection of confidential information, employee screening, and enhanced data management.
While technology played a role in redefining the retail industry and eliminating yesterday's jobs,
tomorrow's job growth will be centered around it. Retail is no longer just a bricks-and-mortar business. The need to continue to learn, expand your skill set, and envision what will be needed in the future is the key to survival in this new retail world.