Store Manager: Strategic Asset or Redundant Position?

Owners of small shoe stores often juggle multiple roles: negotiating with suppliers, managing inventory, handling marketing, and even personally participating in sales. In such an environment, it's difficult to focus on strategic development and operational management. This is where a store manager comes in – a key employee who oversees daily processes and ensures stable business growth. However, many owners believe they can handle this on their own. SR fashion business management and development expert Maria Gerasimenko explains why a store manager is essential and why you can't do without one if you want to grow and scale your business.

Maria Gerasimenko -

CEO of Fashion Advisers and the first online school for fashion business Fashion Advisers School, expert in business management and development, business coach. Fashion business management experience - more than 12 years. Successfully defended 2 MBA dissertations (Mirbi International Higher School of Economics, Russia, Moscow, 2013) and London Metropolitan University (Great Britain, London, 2017)

Main areas of activity: strategic and anti-crisis management of the shoe business, assortment matrix management, development of motivation programs, conducting trainings in the field of management, service and sales. Clients include: Unichel, Tamaris, s'Oliver, Kotofey, Rieker, Sinta Gamma, Helly Hansen, Rusocks and others.

Many store owners consider hiring a manager an additional expense and prefer to maintain personal control. However, as a result, they become overwhelmed by operational routines, lose focus, and, as a result, miss opportunities to scale their business.

The mistake many entrepreneurs make is the belief that “I’ll decide everything myself.”

A competent manager relieves the owner of a significant portion of daily responsibilities, specifically:

• monitors the implementation of sales plans and implements tools to improve them;
• manages a team, trains staff, reduces staff turnover;
• controls turnover, monitors stock balances, reduces losses;
• ensures high standards of service and increases customer loyalty.

How does having an experienced manager affect profits?

The quality of management affects not only the orderliness of a store but also its financial performance. Effective monitoring of salespeople and a motivation program can increase the average order value by 15-30%. A well-structured inventory management process reduces cash flow gaps and increases product turnover. A strong manager transforms staff into a motivated team, which reduces turnover and onboarding costs for new employees.

Therefore, having a competent manager is not an expense, but an investment in the sustainability and development of the store.

What tasks does a competent manager solve?

For a store to operate effectively, it's not enough to simply open the doors and wait for customers. A clear management system is needed, in which every employee plays their role. A store manager is the person who connects the business's strategic goals with day-to-day operations. Let's look at the key tasks they are responsible for.

1. Sales management and achieving outlet KPIs.

Key Performance Indicators (KPIs) are key performance indicators used to evaluate store performance. These include:

• revenue and average bill;
• average check complexity (UPT);
• conversion of visitors into buyers (CR);
• fulfillment of sales plan;
• number of repeat purchases;
• NPS service quality assessment;
• mystery shopper assessment.

A competent manager doesn't just monitor numbers; they analyze them and implement tools for growth. For example, if conversion is low, they evaluate salespeople, identify problems (lack of knowledge, poor communication), and conduct training.

2. Working with a team: hiring, adaptation, motivation.

Salespeople are the face of not only a store but also a brand. Their work determines whether a customer leaves with a purchase. A good salesperson is not only a natural talent but also the result of careful selection and training.

What does the manager do:

• hires employees by selecting candidates with the required qualities;
• adapts new employees, helping them get up to speed quickly;
• implements a motivation system (bonuses, incentives, career growth);
• Conducts morning meetings every day and motivates salespeople to achieve daily goals;
• Conducts training on an ongoing basis.

If these issues are not addressed, the store will experience high turnover and employees will work under duress, which always impacts sales.

3. Operational processes: logistics, product turnover, merchandising.

Ordering, receiving, inventory control, and displaying goods are also the manager's responsibilities. They ensure:

• there was no shortage of popular models in the store;
• goods with low sales rates did not accumulate;
• the display window looked attractive and complied with the principles of visual merchandising;
• The warehouse was in order: the goods were distributed so that they were easy to find.

Improper inventory management can lead to losses. For example, if you fail to rotate inventory between stores in a timely manner, purchase shoes without considering sales statistics, and store items haphazardly in the warehouse, you may end up with excess inventory, which often becomes deadstock.

4. Interacting with customers and increasing loyalty.

These days, simply selling shoes isn't enough; it's crucial to keep customers coming back. The manager's role here is to ensure a high level of service and ensure that salespeople remember to invite new customers to the loyalty program.

What a strong manager does:

• monitors the quality of service and conducts mystery shopper checks;
• implements customer services: product reservation, personal discounts, bonus programs;
• Works with reviews and objections to turn dissatisfied customers into loyal ones.

Ultimately, loyal customers return and bring more revenue to the business. A competent manager is not just a "senior salesperson" but a strategic player who influences all key store processes.

A competent manager is not just a “senior salesperson,” but a strategic player who influences all key store processes.

Is it possible to develop a manager from a salesperson?

Many stores appoint managers from among their best salespeople. At first glance, this seems logical: someone familiar with the product range, customers, and processes will be able to manage the store. But in practice, this transition isn't always smooth. A salesperson may be a master of sales, but that doesn't automatically mean they'll be an effective manager.

So, is it possible to develop a manager from a salesperson? Yes, but to do so, several important factors need to be taken into account. Let's look at them.

1. What qualities distinguish a promising employee?

For a salesperson to become a successful manager, they must have not only strong sales skills but also management potential. What should they pay attention to?

• Responsibility – a person already shows initiative, takes on tasks, and does not just wait for instructions.
• Communication skills – able to negotiate, persuade, and work with objections not only from clients but also from colleagues.
• Organized – stays on task, plans their work, and helps others stay organized.
• Flexibility and learning ability – ready to develop, accept criticism and learn new skills.   

If a salesperson performs their duties well but does not demonstrate leadership qualities, then they are unlikely to become a good manager.

2. How to prepare an employee for a management role?

It's a mistake to simply promote a salesperson and expect them to figure things out on their own. Management work requires new skills, and it requires preparation in advance.

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What you can do:

Delegate small management tasks. For example, assigning an experienced salesperson to manage records, oversee merchandising, or train new employees will demonstrate their ability to handle this responsibility.

Assign a mentor. If there are already strong managers in the network, it is useful to give the new candidate the opportunity to learn from them.

Conduct training. Managing a store requires knowledge of finance, staff motivation, and customer service. Without this knowledge, even the most successful salesperson can become overwhelmed in their new role.

3. Mistakes to avoid when promoting internally.

Entrepreneurs often make typical mistakes that prevent the appointment of a new manager from producing results:

• promotion "by friendship" - a salesperson may be a good person, but this does not mean that he will cope with management;
• a sudden promotion without preparation - if a person worked in the hall yesterday, and today is already commanding colleagues, this causes resistance in the team;
• Lack of training – even a talented employee will not be able to become a manager if he does not receive the necessary knowledge.

Growing a salesperson into a manager is a long-term investment. With the right training, they'll not only master their new role but also become a strong leader who will grow the business.

How to train and improve the skills of an existing store manager?

Appointing a manager is only the first step. For a store to operate smoothly and profitably, a manager must not simply "manage processes" but also continually develop their knowledge and skills. It's a mistake to assume that a successful salesperson or former entrepreneur will automatically become an effective manager. Without systematic training, they may face a number of challenges, from employee motivation issues to financial mismanagement.

Let's look at how to properly train and improve the skills of managers so that they truly benefit the business.

1. Why is professional development important even for experienced managers?

In the world of retail, things are changing rapidly:

• Consumer behavior is becoming more difficult to predict.
• Sales and accounting automation technologies are developing.
• Marketing tools require new approaches.
• Competition for clients and employees is intensifying.

If a manager doesn't develop, they simply become stuck in old ways, which leads to declining sales and poor service quality. Regular training helps not only adapt to change but also stay ahead of the competition.

2. What knowledge should a manager acquire to become a strong leader?

A manager is not just an administrator; he must possess several key competencies:

1. Financial literacy:

• how to analyze store performance (revenue, profit, marginality);
• how to manage inventory and minimize losses;
• How to plan a budget and optimize expenses.

2. Working with personnel:

• How to hire employees correctly to avoid making mistakes in selecting candidates;
• how to motivate a team to achieve plans;
• How to manage conflicts within a team.

3. Sales and customer service:

• how to implement and monitor service standards;
• How to handle complaints and negative reviews;
• How to increase the average order value and store conversion rate.  

4. Marketing and promotion:

• how to work with loyalty programs;
• How to analyze the effectiveness of promotions and discounts.

Each of these areas requires not only theoretical knowledge but also practical experience. Therefore, training must be inextricably linked to real-world business challenges.

3. Where to study: from mentoring to specialized courses.

Useful tools for training managers:

1. Mentoring.

If a company has strong leaders, they can train new managers by helping them deal with real-life work situations.

2. Educational programs and trainings.<

Regular training in sales, HR management, and analytics helps develop the necessary skills.

3.Online courses.

A modern format that allows for on-the-job training. It's especially useful for business owners who want to systematically train managers and improve their stores' operations.

The most important features

A competent manager is a strategic resource that directly impacts a store's success. You can hire an experienced specialist or develop one within the company, but without training and professional development, they will not be able to effectively perform their duties.

As a result of systemic training, the manager:

• works not “by intuition”, but according to a clearly defined system;
• can increase sales and reduce costs;
• creates a strong team that works harmoniously and is motivated

By investing in management training, a business gains not just a "performer," but a leader who can make the store successful.