Retail Executives Continue To Face Mixed Job Market1/1/99

Furniture World Magazine

U.S. retail executives will face a mixed job market next year, according to Joseph Carideo, a partner with New York search firm Thorndike Deland. While opportunities will be limited at department and discount stores, there will continue to be hiring by specialty chains. Traditional specialty retailers will generate the greatest demand, predicted Carideo. "With exceptions, chains are performing below expectations and will be looking for new management. The common problem has been sameness among merchandise and -advertising that's failing to convey a distinctive store identity." Department stores: Hiring will remain flat and middle-level job opportunities will be limited as stores seek to reduce Selling, general and administrative expenses Some jobs will be combined at the divisional merchandise manager level Good news is that industry consolidation will slow. Specialty stores: Increased turnover can be expected at the CEO and COO level as chains struggle to differentiate themselves and rethink their marketing mix. Changes at the top will result in opportunities at the middle level as well. Discount stores: Weak performance in this sector may lead to further consolidation. Fewer opportunities are likely as positions are eliminated at headquarters and in the field. Catalogs: Increased cost pressures, intense competition and growing Internet sales portend hard times for catalog firms resulting in a net job loss in this sector. Entertainmentrelated retailers: Growing opportunities for enterprising executives able to leverage retail effectively in new settings such as lodging, casinos, cruise ships. New ventures: Venture capital firms will continue to support new ideas and start-up retailers offer good opportunities to seasoned retail talent,Carideo noted that a bright spot has been specialty stores with entertainment or sports themes, "Innovative retailers, those operating in theme parks, hotels, casinos or other indoor recreation venues are setting the pace today," said Carideo. "We anticipate that this is where most of the action will be taking place in retailing in 1999." Thorndike Deland Associates LLC is the pre-eminent executive search firm serving all segments of the retail and fashion industries. In addition, Thorndike Deland has strong practices in the consumer and industrial fields, insurance and financial services, The firm is a member of The Greenwich International Group, a consortium of executive search firms with offices throughout Europe.