Summary
Although the author of the source article cites a valid complaint relating to his particular experience, I do not agree that this is the type of service levels exhibited at each and every Home Depot or Lowe's location. In today's time-compressed shopping world, service and the expectation of world-class service is no longer considered a differentiator amongst retailers in a particular channel; that said, there is no doubt that when topline sales sag, the first and easiest expense line to cut is payroll, always the largest controllable expense in any company. What retailers don't always consider is the fact that saving money will quickly impact the bottom line, but, at what expense in terms of branding, market share, topline sales, etc? Going backwards to stop the bleeding is at best, a short term strategy--it is also a self-fulfilling prophecy of doom once you've cycled against yourself over the course of a full year and there is nowhere else to cut when a new year begins.
Analysis
Although many companies in trouble with earnings, shareholders and Wall Street often sacrifice service(payroll) when times get tough, they must also realize that long term success cannot be built without a strategic plan to grow topline revenue. If one would analyze, as a case in point, the 2006 Turnaround Plan at OfficeMax, it is readily seen that short term(full FY year 2006), they overwhelmingly succeeded in a very defensive posturing by cutting labor, Advertising/Marketing, DC and Corporate HQ consolidation, store closings, etc. However, once the new year broke, they had a dismal Q1 Earnings release because they had nowhere else to go on additional expense trimming year over year and did not have a solid sales-driving initiative in place. Similarly, Circuit City is in the same position and are diligently "whacking" the payroll of higher paid, experienced associates as a short term method to cut cost but sacrificing brand, image, footsteps and sales by driving customers to Best Buy where staffing is not an issue and payroll seems limitless.
What separates the bad experience described in the original article from Lowe's and Home Depot's that can deliver an emotional connection with the customer comes down to a couple of things:
1)Experience of the local Store Manager--the "A" manager will figure out a way to continue driving great service with less payroll because his expectations of his staff are higher and he/she knows how to get employees to "step-up" even in the lean payroll times.
2)Service levels are generally better foom 8AM-5PM when most of the Full time associates work--evening shifts are comprised of 75% Part time employees who are less seasoned, younger, make less money, don't have the loyalty(due to lack of service time, smaller salary, no benefits, and let's face it, crappy hours). My advice to the disgruntled shopper is to give Lowe's and Home Depot another shot, but next time, shop early in the day when the Store Manager is on duty, most of the Assistant Managers and Senior Department heads are on duty, and staffing is at peak vs the "skeleton" crews that man the night shift.
