CONTACT:

Liz Roth
Marketing Manager
Axsium Group Inc.
Phone:  416.849.5400 ext. 5442
lroth@axsiumgroup.com

Aaron Martin
Phillips + Associates
Phone: 312.943.9100 ext. 23
amartin@sphillips.com

Retailers Urged to Reset Labor Model to Control Cost and Improve Customer Experience in Post-Recession Economy

Axsium Group’s Latest White Paper Explores Critical Need for Strategic Workforce Management in the Face of ‘Retail’s New Reality’ and ‘Retail’s New Customer’

CHICAGO – February 10, 2010 – Axsium Group, North America’s leading Workforce Management consulting firm, has released an in-depth new white paper that outlines the steps retailers must take to strategically reset their dramatically changed workforces and help ensure their ability to excel in a recovering economy.

The impact of the recession on the retail workforce was predictable. As sales fell, workers were laid off through store closings, as well as staff reductions at stores left open. Remaining associates worked the industry’s fewest reported hours since 1993.

The Axsium Group white paper explores how retailers must now contend with “retail’s new reality,” in which sustaining profitability and sales growth in a post-recessionary climate will be among the greatest challenges they face.

“Retailers that have survived the recession have done so through great sacrifice. Doing more with less has become the new retail mantra,” said Bob Clements, a principal with Axsium Group. “Capital expenditures will continue to be constrained in what is sure to be a slow recovery; however, retailers absolutely must explore how to grow profit and maintain customer-centricity. Retailers should therefore carefully invest in the critical aspect of their business where cost and customer experience intersect: the workforce.”

Mr. Clements further explained that, as retailers turn their attention to recovery, many will simply add staff or increase the number of hours worked by each associate to meet increased demand. He cautions, however, that retailers must be methodical and deliberate to ensure that top-line revenue growth outpaces increases in labor costs. The best way to ensure this, he says, is to focus on having the right labor model in place to meet the demand for labor.

“Given the current market conditions, labor models must change to reflect the new reality,” Mr. Clements said. Today, retailers have smaller workforces, but a smaller workforce isn’t necessarily a leaner workforce. A lean workforce does more with less. A small workforce just does less, and in retail, this typically results in fewer sales. To convert their smaller workforces into lean workforces, retailers have to increase workforce productivity in such a way that it maximizes the customer experience and aggressively controls costs. An updated labor model helps retailers achieve both objectives.”

The complete white paper is available for download at:

http://www.axsiumgroup.com/resources.html

About Axsium Group

Axsium Group, a division of Knightsbridge Human Capital Solutions, is the leading retail workforce management consultancy.  With a singular focus on workforce management, our clients gain access to trusted business advisors, industrial engineers, and technology experts with unmatched experience.  Axsium Group has delivered world-class workforce management solutions for clients such as American Eagle Outfitters, Borders, Express, and Safeway.  For more information, visit www.axsiumgroup.com. 

About Knightsbridge Human Capital Solutions

Knightsbridge helps organizations strengthen the capability of their people to deliver results. Our seamlessly integrated teams of experienced specialists in Organizational Capability, Executive Search, Organizational Productivity and Career Transition provide customized solutions to deliver on your human capital needs. Knightsbridge has the people and services you need when you need stronger people.

Knightsbridge is Canada’s fastest growing human capital company, with 26 offices and 240 employees across Canada the U.S and the U.K. including Toronto, Montreal, Ottawa, Calgary, Vancouver, as well as   Halifax, Moncton, and St. John’s through our strategic alliance with Robertson Surrette. We serve our clients globally through strategic alliances with Lee Hecht Harrison for career management services and Amrop for global executive search. For more information, visit www.knightsbridge.ca.  

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