Online Sales Hurting Retail In-Store Commissions
Connect Retail is our weekly column on the sector, authored by veteran CRE writer Ian Ritter.
When someone walks into a high-end retail store, the salesperson making suggestions on the customer’s shopping experience and choices is likely getting a commission.
However, the major rise of e-commerce for luxury products, is certain to impact workers in stores who have honed their careers on specialized customer service for high-end-good advice.
There are various retail-commission structures out there, depending on the company. For example, commissions can run as high as 10% of an employee’s sale. That can make a major difference in a customer-service situation for luxury goods employees, when the average mean wage in the United States for retail workers in department stores is just over $22,000.
Not only does the increase in online retail shopping impact brick-and-mortar centers for leasing purposes, it also has a serious impact on workers in those stores.
There is an obvious shift in how retail goods are bought and sold, but there can also be a shift in how physical stores run their businesses.
If a business creates an atmosphere of experiential retail that people want to visit, the store should do fine. But creating an experience of employees who cater to customers is key. It’s important to take care of these workers, so that specialized retail can thrive.
Do you think that the personalization of upscale retail can compete with online sales?