Transforming the high street - Retail update March 2018

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TRANSFORMING THE HIGH STREET

Our proposal to invest in a dedicated Manager for every store, improving sales growth and supporting teams to provide a truly amazing customer experience.


Dear colleagues, We are committed to having a thriving Retail network, alongside a highly effective website, so we can give customers the very best service each and every time. We want to be profitable, we want to offer world class holidays and be famous for the service and advice we offer, and we want our colleagues to develop their careers, fulfil their potential and really love coming to work. We recognise the importance of having the right management in stores to allow this ambition to become reality. Last September we reintroduced dedicated Store Managers into shops in six of our regions; I am pleased to say that, within those six regions, we’ve seen early signs of improvement in trading performance as well as an increase in NPS and compliance in these stores.

If you have questions about what we’re proposing and the potential effect on you or your store, please do speak to your Regional Manager, Head of Retail or email me directly (click here to send me an email). Thank you as always for your support.

Kathryn Darbandi Director of Retail and Customer Experience

We are now proposing to roll out dedicated Store Managers across the whole network. This proposal brings with it a big opportunity for colleagues to ‘own’ and manage their own stores leading a team of people. While this is an exciting step for many, we know that these changes might not suit everyone and there will be a small number where there isn’t a suitable role in the new structure. However we will do all we can to find alternative roles and support those colleagues during the consultation process. Within these proposals we’re once again suggesting that the role of Assistant Manager/Customer Service Manager in our smallest stores – size 1 and 2 – be removed, and we are working with these colleagues to find suitable Assistant Manager roles in store size 3 or above, or entry level Store Manager roles where possible. We have a strong L&D programme to support those who wish to make this step. This is a massive development opportunity for a large number of people – giving colleagues a chance to step up into a more senior management role.

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NAGER A M E R O ST EING ROLES B CREATED

Click here to watch a short video of Kathryn talking about the proposals

Did you know?

When we did our changes in September we were able to promote two Sales Consultants and 49 Assistant Managers/Customer Service Managers into Store Manager roles. A great result and one that gives all colleagues excellent Retail development opportunities. All proposals contained with this document are subject to consultation

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THEN AND NOW A LOOK AT THE NETWORK 2013

2014

2015

2016

THEN

2017

2018

NOW

In 2013, when we introduced Cluster Management, we had more than 1240 shops operating under the Thomas Cook and The Co-operative Travel brands. Cluster Management was a sensible – and cost effective way – to manage the shops, many that were in the same town or very close proximity to each other.

In 2018 we have a network of 600 shops in the very best high streets, shopping centres and out of town retail parks across the UK and Northern Ireland. We’ve removed duplication and are working to make sure our modern, innovative, shops provide the best service to our customers. From November we’ll have only one brand – Thomas Cook.

REGIONS INCLUDED IN THESE PROPOSALS North

› Manchester and Liverpool › Manchester Central › Manchester North › Manchester South › Newcastle › Consistent focus from dedicated Manager to develop colleagues

› Clear development opportunities for all levels within Retail

West

› Birmingham and Bristol › Birmingham North › Gatwick Central › Gatwick South › Luton Central

East

› East Midlands North › Gatwick East › Humberside › Leeds and East Midlands › Leeds and Teesside › Stansted and Luton › Birmingham and East Midlands

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All proposals contained with this document are subject to consultation


WHERE IT HAS ALREADY WORKED

Glasgow South, Glasgow North, Belfast &Douglas, Cardiff Central, Stansted & Norwich and Bristol & Exeter have already introduced dedicated Store Managers at the end of last year. During December 2017 and January 2018 alone, we have seen marked improvement for de-clustered regions in sales performance, Net Promoter Score (NPS) and compliance which supports our view that dedicated management has clear benefits both for the business and the teams in those stores.

“I was a Cluster Manager previously, but moved back into being a Store Manager when the changes were made in my region last year. It’s been a very positive move for me and my team – I’ve seen the difference you can make to the development of the team, as well as the financial performance, when you’re in the same store five days a week. Being in total control of my store has made me happier in my own role, and the feedback from my customers has been really positive – they love having a manager there full time.”

Diane McKee, Store Manager, Thomas Cook Irvine

Mystery Shop In January 2018 alone 17 stores in de-clustered regions were mystery shopped with 100% pass rate and an average score of 97% compared to clustered regions with a pass rate of 79%.

Director of Retail - Kathryn Darbandi

Head of Retail - West, North and East

Regional Managers x23

Town Manager

Store Managers store size 1&2

Deputy/ Assistant Manager*

Sales Consultants *Depending on shop size

Store Managers store size 3&4

Assistant Managers

Sales Consultants

Sales Consultants

Store Managers store size 5&6

Deputy Managers

Sales Consultants

All proposals contained with this document are subject to consultation

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QUESTIONS AND ANSWERS

Q I’m an Assistant Manager currently, can I apply for a Store Manager position?

Yes! What we’re proposing is a huge opportunity for those who are ready to take on a more senior management role. We want passionate leaders to bring teams of colleagues with us on our Retail transformation.

Q Why are we proposing to take Cluster Managers out?

We introduced Cluster Management in 2013 when we had 1240 shops as a way to cost effectively manage a large number of stores, many of which were on the same high street or very close by. We now operate a network of 600 shops which means shops are spread much further apart and we believe having a dedicated manager in every store is the right step for the network.

Q Will every shop now have a dedicated Manager?

Yes, if the proposal goes ahead, the whole network would have a dedicated Store Manager, bar a very small number where we still have two stores close by, and by this we mean within easy walking distance – there will be a shared Town Manager.

Q Why didn’t we make this change back in September when we made these changes in six regions? Was that just a trial before a wider roll out?

In September we identified six regions that were most stretched by the geographical distance between stores following a period of store closures. Since then we’ve closed, or have proposed to close, a further 80 stores so this geographical issue has become more widespread. We have seen the benefits of dedicated Store Managers in the six regions, where it has shown that trading, customer ratings (NPS) and compliance have all improved which is the key driver behind making these proposals now.

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All proposals contained with this document are subject to consultation


QUESTIONS AND ANSWERS

Q Why are we getting rid of the Assistant Manager and Customer Service Manager roles in smaller stores?

This change impacts Assistant and Customer Service Managers in store sizes 1 and 2 as it is clear that these size stores cannot financially support both a dedicated manager and a second manager position.

Q I want to apply for a role, how do I do it?

Q I’m worried about what this means for me, what should I do?

We’re really keen to offer as many of our vacancies to internal colleagues as possible, please speak to your Regional Manager who will be able to support you and identify suitable roles as well as the application process.

Q Will there be any changes to the Regional structures or the role of the RM?

If the proposals go ahead, our Regional Managers would move to having a higher number of direct reports, on average 26. All Managers would report directly into the RM and attend all Managers meetings, functions and training going forward.

We know that any change is unsettling and appreciate that his proposal may concern you whether you are directly affected or not. Please remember though, this is an investment and growth programme and we’re looking to retain as many colleagues as we can. We are looking to safeguard our Retail business and we are confident that these proposals would help achieve that.

Q Will there be any support for those successfully securing a new Managers position?

Yes we will be running additional Manager Induction training to ensure everyone gets off to the best start in their career as a Manager, there will be places for existing Managers too if felt beneficial.

All proposals contained with this document are subject to consultation

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WHAT BENEFITS WILL HAVING A DEDICATED MANAGER IN EVERY STORE BRING? SHOULD THE PROPOSAL GO AHEAD, THERE ARE MANY BENEFITS: FOR OUR COLLEAGUES

› Consistent focus from dedicated Manager to develop colleagues

› Clear development opportunities

FOR OUR CUSTOMERS

› Constant access to a Store Manager › An empowered network of store colleagues who feel part of › An engaged and motivated team, Thomas Cook but are empowered

for all levels within Retail

working together and giving the best service

CONSISTENCY IS KEY As well as proposing to introduce dedicated Store Managers in the 17 remaining regions, we’re also taking the opportunity to align the titles of some of our colleagues. We 6 will SIZE 5 OR no longer have Customer Service Managers, depending on the size of the store, colleagues will have their titles amended.

SIZE 5 OR 6 Now Deputy Manager

SIZE SIZE 3 OR 14OR 2 Assistant Manager

SIZE 1 OR 2

Store Manager only

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FOR THE COMPANY

All proposals contained with this document are subject to consultation

to act at a local level


HR Service Desk 0345 608 0502 All proposals contained with this document are subject to consultation

www.thomascook.com THO.UK.004


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