Retail needs team players

That was February 1988 and then, as now, times were tough. But a lot has changed in 20 years, as shown by this week’s decision by Carphone Warehouse to increase its store staff’s basic pay and scrap individual commission.

DSGi and Comet have both made moves in a similar direction. It’s not an easy decision to make. At a time when sales are difficult to come by, the idea of diluting an individual’s incentive to sell looks like an odd one on the face of it.

But it’s the right decision. Today’s shopper is more demanding and – particularly for comparison goods such as electricals – uses visits to stores as part of a multi-channel research process. High-pressure selling is outdated and turns off shoppers.

Specialist stores will survive only by playing to their strengths. So they need teams with a pool of product knowledge that work together to create a compelling store experience. This happens in UK retail, but not often enough and nowhere near as much as in the US, where Carphone’s partner Best Buy is one of several retailers that excel.

The internet age demands a more sophisticated approach to commissions. Retailers need to recognise the role that stores play in online sales to their local area. It’s a conundrum with no easy answers, but the answer has to lie in rewarding teams, not individuals.

Howzat

One retailer that has got the service equation right is Majestic Wine, and this week marked the retirement of the architect of its phenomenal success. Under Tim How, the company has become a business school textbook of how a specialist retailer can take on the supermarkets and win.

How’s understated manner hides a wealth of retail knowledge and understanding. While his meticulously planned succession should mean the company will still prosper, many in retail will be sad to say goodbye to one of its gentlemen.