A year on from the height of a recession that has claimed such household names as Woolworths, retailers are in a more positive mood and have one eye on recovery. But whether that recovery will be shortlived will depend on retailers’ fortunes in the all-important Christmas trading period and beyond.

“I am concerned about what’s going to happen after Christmas. On the permanent side, it feels more like it did, pre-credit crunch,” says Grant Morris, managing director at Elite Associates.

But retail candidates remain cautious over their next move, according to Rebecca Martin-Cortez, resourcing manager at Argos: “In the current economic environment candidates want to be sure they are making the right career choice.”

Isabelle Hung, head of resourcing at Harrods, told Recruiter that while candidates have sat tight in the recession, the recovery could cause staff turnover to increase. “As the economy revives and consumer confidence builds, the concern is the potential for staff turnover to increase, and the rate at which this could occur.”

We look for agencies to work in partnership with us and take time to understand our business. The candidates are usually a close fit to whatwe’re looking for

Restored candidate confidence may benefit such in-house recruiters as Lee Evans, group recruitment manager at New Look, who says good in-store personnel and store managers remain in demand. “The demand is predominantly for store-based roles, store management and head office roles,” he explains. “Candidates who have technical knowledge such as in lingerie and footwear are difficult to find.”

Evans adds that he requires flexibility from his agency partners on margins. “My partners are relatively flexible and I have asked them to be so because I have specific requirements in terms of outlay. I’ve got specific projects that require quite a hefty spend — a purchase of an applicant tracking system and a new careers site.”

And such flexibility can pay off for agencies, says Russell Crowe, managing director at Retail Kudos. “Over the past month, we have agreed deals with two clients to extend the business we do with them but at a lower margin. We will probably make more money from them, as a client, and they will get a lot more from it at a discounted rate.”

But in this market, there is a difference between flexibility and operating on suicidal margins, according to Peter Burgess, managing director at Retail HR.

“Some firms have caved in too easily on fees under severe pressure from clients and they won’t be able to deliver the service. There is nothing wrong with being competitive but if you make your fees so low that you can’t deliver, the client won’t forgive you for not performing.”

And recruiters are having to prove their worth to resourcing professionals as in-house recruiters are increasingly using all means at their disposal to attract talent, says Evans. “You have to build a talent pipeline through being open and approachable and being in as many mediums as possible, such as LinkedIn, Twitter and Facebook.”

Cortez operates an in-house team and only uses agencies for specific roles. “We look for agencies to work in partnership with us and take time to understand our business. The candidates they put forward will be small in number but usually are a close fit to what we are looking for.”

But the immediate future of the sector rests on Christmas trading, says Evans. “We have had a stonking first half to the year, and Christmas and Q4 is going to be very telling on the sector.”

stakeholder comment

Isabelle Hung, head of resourcing, Harrods
“Some are adding value, others are still working to sales-focused agendas. Our key agencies are supporting us by using their industry knowledge, sharing information and becoming more engaged with our in-house team. A good agency partners with you, does what they say they will, always interviews candidates face to face and shares all candidate information.”

Sean Thomas, head of HR, Habitat
“Having a partner that really understands the business and is engaged with it will give you an edge over the competition. If you have a partnership with an agency, invite them to do a floor walk with you; let them visit your stores so they understand the management, and how their culture and values fit the business.”

Peter Burgess, managing director, Retail HR
“January is the worst possible month to reinstate VAT because that is when the sales are on. The VAT cut should not have been introduced in the first place. The reintroduction should be delayed until February, so retailers have the chance to get the best they can out of it in terms of sales, just so they can pare down stock.”

GRAHAM SIMONS
[email protected]