Retail Industry Job Cuts: Is the Economy the Real Reason for the Season’s Layoffs?
AT&T got 2.4 million new iPhone subscribers and reported excellent results in its cellphone business in its fiscal third quarter. And then it announced a layoff of 12,000 employees due to “weakening consumer spending.” Really? The economy is so bad that Americans dramatically cut their phoning, surfing, and TV watching and AT&T suddenly found 4% of its work force sitting idly without work to do? Is it possible that layoffs are happening in large corporations because job cuts are currently viewed as an acceptable maneuver and not likely to be scrutinized by outside critics?
Is “the economy” the reason for everything that’s going on in the retail world, or is the recession sometimes being used as the convenient excuse?
A marketing friend of mine was telling me about a local Chamber of Commerce that couldn’t stage its annual holiday party because of “the economy.” At the risk exposing my OCP (Obsessive Compulsive Pollyannaism), I have to believe that if Macy’s could find a way to throw a parade and Dollar General can find a way to give away $1 million cash, then a Chamber of Commerce could find a way to have a holiday party if they really wanted to throw one.
Yes, apparel stores cut 17,600 jobs in November. But let’s not overlook the 1.46 million people who are right now working in U.S. apparel stores. Yes, department stores cut 3,500 positions in November. But, let’s do the math and realize that’s just two-tenths of a percent of the 1.47 million people who are currently employed by department stores. People are working in the retail industry. If you’re a valuable contributor you can be one of them.
When Rachel Ray had her first regular gig cooking on television, it was at a local TV station with a local audience, and the gig didn’t pay her rent. So she went to a local grocery store and created a position for herself. She did in-store cooking demonstrations and helped sell the meat that was featured in her hotplate creations.
The grocery store probably wasn't advertising in the newspaper for “30 Minute Meal Hotplate Cook/Meat Salesperson.” Rachel created the position in her head and then sold her idea to a store manager who didn’t know he had such a position until she walked through the door.
Undoubtedly there are many people who will get laid off and stay laid off for an extended period of time because of “the economy.” Undoubtedly there are also many people who will connect with their own Rachel Rayness and make a place for themselves in any economy. And for everyone else, despite the reports, there are jobs to be had for those who have enough creativity to find them.
First. Do some research. Macy’s name is on the parade but macy’s does not fund it totally. In addition the funds allocated for the parade are segregated. lastly, macy’s is paid quite a large sum of money by the television network to be allowed to broadcast the parade. Did your friend in marketing somehow forget these facts?
Second. Golly…yes. The reason all those people are unemployed is the economy. Holiday parties are a luxury not an expected given.
I see retailers and consumers acting as if they were a deer caught in the headlights.
I find that my retail consulting clients don’t know what to do in terms of marketing. Even with great ideas on staying in touch with their customers via newsletter, instant messages and more they just don’t seem to get it or want to spend anything on marketing, hence they complain that business is lousy. Go figure.
Yes, the reality is people are being laid off and even if it’s an excuse by big corporations to stay viable, we will benefit in the long run. It’s better for them to be in business rather than out.
Hopeful retailing,
John
The picture is going to get a whole lot worse, more than most people imagine and for reasons no one is expecting. Come Feb 10, 2009, it will become illegal to sell broad categories of kids products. It’s not being called National Bankruptcy Day for nothing.