Savestore is a chain of cut-price shops selling a range of household goods, health and beauty products and non-perishable foods. It was set up as a family business in North London (UK) in the aftermath of the financial crash in 2009, when many families were struggling to make ends meet. Customers were attracted by the low prices and friendly, locally recruited staff. Now with premises throughout southeast England, it buys cheap (often end-of-line) products and sells them with a very low profit margin.

Savestore was highly successful for the first five years, when there was not much competition, but profits have been in decline since 2015. About one year ago it was taken over by a competitor with a strong target-driven culture that is very different to the way the original family business was run.

You are the Area Manager for North London, a position you held prior to the takeover. You are coming under some pressure from head office with regard to a store in Wood Green. Its volume of sales has declined in the past six months, which is when the assistant manager, Sharon, was promoted to the role of store manager. You know that Sharon was a good assistant manager, well regarded by her colleagues, and that she was keen to take on the additional responsibility, but she is not meeting the sales targets set by head office. You are not aware of any external reason for the decline in sales.

Decision!

How would you go about dealing with this situation?

yy Use Sharon’s next performance appraisal to discuss the issue yy Hold a formal meeting with Sharon to discuss the decline in sales and regular meetings thereafter yy Provide training for all Wood Green staff on the new organizational culture yy Arrange for the manager of a nearby store with good sales figures to mentor Sharon