As I’m sure the folks at Toys R Us just realized, corporate arrogance and greed will sink a company faster then to can imagine. I’m sure they all wondered “how could this have happened?”, but you can always point back to one or two crucial decisions that led to a their demise. When CVS finally falls we can look back to the day Larry Merlo’s and the Macy’s took over, the debt load of the Aetna deal, and the immense costs to remodel stores neglected for years. That coupled with high prices and understaffed stores chasing customers away, poor in-stock, and a refusal to invest in wages (until now), training and development of our store teams. It’s the blueprint for retail failure.
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Here’s a metric rarely discussed anymore SPMH, Sales Per Man(Woman) Hour. Budgeted and tracked, but one of the non mentionables.
Seriously the scoring system makes a store doing 12,000 a week in sales look financially great and green on all metrics and most of these stores rank as excellent! Meanwhile they make no profits to ad to the company pool! The larger volume stores doing over 130,000 a week however ad millions to the profit lines for our company but look financially unstable because their budgets are harder to reach! The 12,000 a week store gets 220 hours while the 130,000 store gets 390 hours! Do your own math! Which store do you think scores better on walked to item? Just a real bad tool of measuring success of a location. Gonna be our down fall! Profit dollars matter not percent of profit over budgets!
11k a week! No way in hell you get 220 hours, 1500$ a day. If your pharmacy was busy you would make more than 1500 a day just by people coming in to pick up scripts. You will forsure be on the 2019 closure list. We had two stores close that were not even 5 years old doing about 35k a week here in CA. No rx buisness either.
Unfortunately we do have fs that do that little. They probably have a strong rx so they stay open longer to accommodate the rx.
As much of an over inflated head he seems to have, I'm sure he meant 11% over budget. I cant imagine any store making only 11k getting 220 hours
11k a week your store will be on the store closing list.
You have not listed our msh system! My store is an excellent store! I am crushing sales budget, My store did almost 11 last week , I was up 10 percent over budget! I had 98 service score with 4 weekly surveys, so my customers love me. My schedule optizimation was 99 so I used my 220 hours perfectly. All my plan o grams are ahead of schedule and my back room is perfect due to the great job we do on CFR ! My new leader loves me I am green on everything so she looks good also! Maybe one day she will figure out I only made 1200 in monthly profit in front store, but until that day J am a superstar! She says I am on the list to promote to EL, my advice is to quit trying to make sales and profits and just go green! By the way high sales stores are s---ing on our new system so stay in small sales stores, those managers are getting killed and Red on everything!
You're right, but you have to realize Merlo knows this but doesn't give damn, he will cash out well before the collapse.