Date:09/06/2007 URL: http://www.thehindubusinessline.com/2007/06/09/stories/2007060902390500.htm

Back Retail players grapple with high attrition

Anjali Prayag

MANPOWER CRUNCH: A file picture of sales personnel at a retail store.

Bangalore June 8 Fully loaded carts and a six-digit footfall figure on weekends may bring a smile to the country's Rs 1,00,000-crore retail sector.

But lead players have also realised that retailing is not just about cash registers ringing. It's also about people management and managing early exits at all levels.

"Retail is a hands-on operations job and you have to work hard to sustain the business. This and increasing competition has resulted in early exits at all levels in the industry," said Mr K. Sudarshan, Managing Partner, EMA Partners International, a global recruitment firm.

Biggies like Reliance Retail, Aditya Birla Group and the Future Group have already seen some high-profile exits.

According to industry sources, these groups are witnessing 20-30 per cent attrition at mid- and junior levels too.

Frontline staff attrition in retail is around 20-30 per cent, but internationally too this is the figure, according to Mr Fazle Naqvi, Executive Director, LMG Brands India.

Mr Santosh Unni, Head (Operations and Marketing), Retail Division, Heritage Foods India Ltd, said: "The industry is on a growth path and has started experiencing attrition, especially at the lowest levels."

Options for movement at this level are plenty and compensation is the prime motivator.

Mr Sudhakar Balakrishnan, Director and COO of Adecco, said that though the industry is just evolving and older retail companies have been hit first, there has been some movement in the newer companies too.

Larger companies have started building resources through internal training measures.

Mr Unni said that on-the-job training helps build better sales people and build a company culture, "which helps in better retention rates."