Retail and FMCG
This year is likely to be a fairly rocky road for much of the retail sector; the increasing dominance of both the supermarkets and online sales has lead to massive declines on the high street. This has eroded many companies’ core markets to such an extent that their mere existence is looking unlikely.
2011’s spate of high profile insolvencies (Habitat, Homeform, Jane Norman, Focus etc etc etc!) plus companies sounding the retreat in electricals (Best Buy exiting the UK and Comet being sold for £2) would normally signal an improvement in fortunes for their competitors as they pick up leftover market share. However, potential increases in unemployment and general nervousness about the future mean that Joe Public still does not want to spend. He is still concerned about his job security and is most likely still paying off debt.
A large number of retailers are in the same boat. The credit bubble of 2007-8 still hangs over many businesses. As debt and leverage levels become increasingly unsustainable we are likely to see a high number of insolvencies, re-structures and re-financing after Christmas.
Yet amid all the doom and gloom there are still success stories. Many UK organisations are growing internationally and the best companies will continue to deliver the numbers. Although they are having a hard time in the UK, Tesco shares are still tipped as a “buy” and their performance in south east Asia is fantastic.
Implications for the executive recruitment market
Well, as ever, the demand for the best people remains high. In order to deliver in this tough market, the salaries of top performers are being pushed higher and higher. As ever, people who are delivering are rarely looking around, hence the requirement for direct approaches and proactive search is increasing.
The market for talent is becoming increasingly international. As businesses become truly global organisations, so must candidates improve their mobility to accelerate their career development. We are finding a rise in demand for searches in developing markets such as eastern Europe, south east Asia and Russia. The best candidates recognise the career opportunities that those rapid growth markets create.
Our response
Michael Page Executive Search has leveraged our specialist market knowledge and extensive network to successfully complete a variety of mandates including:
- Commercial director developing markets, Mexico – Global grocery retailer
- MD (UK country manager) – FMCG
- International head of category management – Global grocery retailer
- Finance director – FMCG manufacturer
For a clearer picture of how we do things, read our case studies on finding a global marketing director and a UK finance director.
