Industry Chat: Retail September 2016

Sugirtha Stathis, Senior Associate Director

Porsha Alexander, Recruiting Relationship Manager

MBA Career Management

Agenda

• Working with MBACM

• Retail Industry ─ Introductory Overview

─ Trends

─ Functions, Roles and Internships

─ Company Relationships

• The Job Search ─ Recruiting and Summer Outreach

─ Is the Retail industry for you?

─ Career Pathways

─ Recruiting Strategy and Timeline

• Hiring Data ─ Offers, Compensation and

Sponsorship

• Retail at Wharton ─ Wharton Graduate Retail Club

─ Baker Retailing Center

• Q & A

MBA Career Management

MBA CAREER MANAGEMENT

Case Example: How can we help?

Strategic Partnerships across Wharton and Beyond

MBA Career Management Retail Team

Career Advice

• Self-assessment & decision making

• Networking

• Industry Insight

• Resumes, Cover Letter & Interview Prep

Corporate Relationships

• Develop employer outreach strategy with RRM

Programming

• Develop programs for students interested in retail-related careers

SUGIRTHA STATHIS SENIOR ASSOCIATE DIRECTOR

Corporate Relationships

• Strategize best recruiting approach for variety of employers

• Co-manage employer relationships with Career Advisor

• Manage recruiting events

Student Support

• Assist students with logistics of on-campus interview process, job board postings, etc.

PORSHA ALEXANDER RECRUITING RELATIONSHIP MANAGER

Collaborate with professional clubs and research centers, including the Wharton Graduate Retail Club and Jay H. Baker Retailing Center

Industry Overview

Sub-sectors include…

Apparel/Footwear

Beauty

Department Stores

eCommerce / Tech Retail

Fashion/Luxury

Food & Beverage

Big Box / Mass Merchandisers

Off-Price Retailers

Other/Specialty

The Retail Industry Defined Any store (physical or virtual) where a consumer can purchase goods.

Trends in Retail • New retail models

• Online Offline; Rent, not buy; Customization and personalization

• Offline innovation • Customer experience: “smart” dressing rooms, store within a store

• Supply chain disruption

• Omni-channel

• Tech advancements • Big data and customer analytics

• ‘Internet of Things’

• Bright spots • Fast-fashion, off-price retail, sporting goods/athletic apparel, home goods,

value chains

Functions in Retail

Strategy / Business

Development

• Conduct due diligence, identify and size new business opportunities, research revenue initiatives, perform competitive analysis, etc. “Researched women’s luxury apparel markets in four European countries and built a comprehensive entry strategy proposal for highest-potential market”

“Developed strategy & framework for international M&A; identified key attributes of priority opportunities and presented findings to CFO”

Marketing (esp. Digital, Customer Acquisition & Retention)

• Wide range of roles and related responsibilities, including brand management, marketing/communications, omni-channel integration, digital/eCommerce strategy and more

“Developed digital growth plan for $130M men’s fragrance business, which included innovations to brand website, search and social media strategies, use of technology in stores, and strategic app partnerships”

Merchandising / Planning

(may include buying in department stores)

• Analyze consumer trends, competitive landscape, historic sales to create compelling product assortments and optimize sales

”Mapped out assortment plan for $10M category by analyzing historical sales and assessing future product trends; cut SKUs by 20% while increasing sales by 35%”

Functions in Retail

Finance / Strategic Planning

• Provide financial analysis, reporting and strategic planning to business leaders. Interpret trends, issues and opportunities; advise on financial implications of business decisions “Developed 3-year strategic and financial plan for $11B North America geography”

Operations / Supply Chain

• Generate supply chain efficiencies, enhance customer service, improve vendor lead times, design fulfilment centers

“Created distribution center strategy based on analysis of warehouse efficiency, vendor locations, and shipping costs”

General Management /

Leadership Development

Programs

• High-profile, “fast-track” MBA programs designed to develop future leaders of the company

• Typically offer accelerated career advancement supported by customized training, senior executive exposure and mentorship

• Some programs include rotations across business units, functions, and/or regions during LDP period, with final placement in area of interest

Company Examples – U.S. MBACM has over 2,000 company relationships and contacted over 200 firms this summer to reveal hiring needs and trends

Retail Companies Across the Globe

The Job Search

Mature & Enterprise Recruiting

• Established employer relationships • Annual, steady demand • Extend multiple offers/yield multiple

students • Understand MBA recruiting value

prop

MATURE

• Developing employer relationships • Inconsistent demand year-to-year • Just-in-time hiring • Less clear on MBA recruiting value

prop

ENTERPRISE

Consulting, Banking, Sales & Trading, CPG Private Equity, Venture Capital, Media, Social Impact, Start-Ups

Healthcare, Technology, Retail, Energy, Hedge Funds, Real Estate

Recruiting Strategy/Timing

Wharton Strategy

Student Strategy

• Employer Info Sessions, Employer Networking Night, Sponsorships, On Campus Recruiting

• Heavy Fall/Winter Recruiting

• Postings, resume book, networking • Throughout year; late in year/summer offers

Wharton Strategy

• Differentiate vs. other schools • Build market share • Find new ways for company engagement

• Develop compelling Wharton value prop • Expand/maintain vibrant Wharton network • Manage outreach with clubs/partners

• Prepare for EIS, Interviews, how to decide between firms, etc

• Networking-intensive • Alumni-intensive

Student Strategy

Mature & Enterprise Recruiting in Retail

• Established employer relationships • Annual, steady demand • Extend multiple offers/yield multiple

students • Understand MBA recruiting value

prop

MATURE

• Developing employer relationships • Inconsistent demand year-to-year • Just-in-time hiring • Less clear on MBA recruiting value

prop

ENTERPRISE

The Retail industry is a mix of Mature and Enterprise activity

Two Strategies; One Search

Mature

• Employer Information Sessions

• Networking Expo • Coffee Chats • On-Campus Interviews

Enterprise

• Networking Connections • Job Postings • Wharton Community/Alumni • Informational Meetings • Offer Directory • Digital Brand

Conduct a well-prioritized and balanced search to ensure recruiting success

Representative Outreach List: Summer 2016 Over 150 retailers recruited Wharton students last year, and we spoke to 25 firms this summer to reveal hiring needs/trends with HR and alumni.

Key Takeaways from Summer Outreach

MBA Career Management

• Firms look for candidates with passion for retail and an ability to build relationships

• MBA culture varies among firms (beware the MBA stigma!)

• Attracted to Wharton talent for analytical horsepower + strategic thinking

• Luxury and fashion brands value the candidate’s ability to understand the customer

experience (and like to see store / boutique experience)

• Networking is essential – retail is a people / relationship-driven business

• Many firms hire on a “just in time basis”, so they take advantage of the Retail

Conference, Spring NYC Networking Expo, Job Board, Spring Resume Book

Q2 On-Campus Recruiting Events

Employer Information Sessions (EIS) Estee Lauder November 1, 12:15pm

L'Oreal November 7, 12:15pm

Wayfair November 8, 12:15pm

Amazon November 9, 6:30pm

Walmart eCommerce November 10, 12:15pm

Nike TBD

H&M TBD

Coffee Chats

First-Year Networking Expo: Monday, November 7th

What Retail Recruiters Seek…

• Communication; ability to work with non-MBAs

• Leadership and cross-functional teamwork; work with all levels

• Analytics and strategic thinking; see insights from data and connect the dots

• Creativity, ability to think “out-of-the-box”; demonstrate innovation experiences

• Relevant functional expertise

SKILLS

• Many firms open to career switchers, but industry/functional experience is helpful:

• Professional services background with focus on retail

• CPG, mass merchandisers, or specialty retail background

• Customer analytics, digital marketing, e-commerce experience

• Store-level experience

• Global exposure / language skills a plus

EXPERIENCE

• Passion for retail category, product and industry, as well as customer; demonstrate an opinion and a point of view on the industry

• Adaptability, “can do” attitude, comfort with change or ambiguity

• Flexible business skills (creativity to analysis to negotiations)

• Relationship-driven / personable

• Demonstrate humility; willingness to learn

ATTRIBUTES

Career Switching

94%

79%

63%

46%

71%

48%

65% 60%

86%

63%

81% 80% 87%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

% Intern Accepted Offers – Reported “Industry Change”

Pre-MBA Experience: Retail Industry

Consulting 19%

Retail 19%

Investment Banking

11% CPG 8%

Technology 8%

Social Impact 8%

Diversified Financial Services

6%

Media & Entertainment

6%

Hedge Funds/ Other

Investments 6%

Private Equity 3%

Manufacturing 3%

Professional Services

3%

*Class of 2016

Is Retail for YOU?

• Specific to firm and category

• People are passionate about the industry / sector / brand, and it shows (physical space, workplace attire)

• Driven by product/consumer trends,

interests and needs

• Fast-paced

• Team-oriented; relationship-driven

• Often not many MBAs; unclear / self-driven career paths for MBAs

• Salary often falls below MBA medians, but range is wide across sectors

CULTURE

• Dependent, generally better than professional services

• Cyclical; often predictable seasonality (e.g. buying or strategic planning season is busier)

• Travel is role-specific (e.g. finance/corporate support vs. merchandising/product)

WORK/LIFE

Retail Case Studies

MBA Career Management

Stuti Mohan

• Before Wharton: Senior Analyst at a boutique analytics consulting firm specializing in retail industry

• At Wharton: Co-Chair, Retail Conference; VP Student Life, WGA

• Internship: Wayfair (Mktg, CRM)

• Advice: Demonstrate passion for retail; strong analytical skills go a long way for most roles; talk about your experiences as a consumer from a retailer perspective. Int’l students, leverage your under-standing of other retail markets in addition to the US market

Erin Yu

• Before Wharton: Consulting; Consumer/retail-focused PE fund

• At Wharton: Retail supply chain class, extensive conversations with MBACM and 2Ys

• Internship: Everlane (Operations)

• Advice: Don't be afraid to reach out to companies directly; demonstrate your enthusiasm and familiarity with your top firms, as well as their sector in retail. Retail sites like Business of Fashion and Womens Wear Daily are great to read regularly.

Elena Pujals

• Before Wharton: Investment Banking, J.P. Morgan

• At Wharton: Retail Conference Sponsorship Team, Marketing Club

• Internships: Urban Outfitters (M&A and Corporate Strategy)

• Advice: If you are a career switcher, it is essential to think outside the box for recruiting (go to conferences, make presentations, tap into the alumni network). Don't rely on the simple resume drop for an internship.

Career Pathways

MBA Career Management

Kathy Hines WG04

Craig Elbert WG09

Clarice Wong WG08

VF Corp 2013-present Dell 2011-2012 Mindshare 2010-2011 Nike 2004-2009 Hinesight 2000-2002 Bain 1997-1999

Louis Vuitton 2013-present Bloomingdales 2008-2013 Bloomingdales MBA Intern Warner Bros 2005-2006 20th Century Fox 2004-2005

NoHo Holdings 2015-present Bonobos 2009-2015

Universal Pictures, MTV MBA Intern

Warner Music Group 2005-2007

Lehman Bros 2003-2005

JOOR 2010-present ANN Taylor 2007-2009 Chanel 2006 Destination Maternity 2005-2006 Elie Tahari MBA Intern Consultant 1999-2003

Mona Bijoor WG05

Industry change from 1st to 2nd place of employment 2nd Place of Employment

1st place of Employment

Consulting and professional services n=463

Consumer goods/Retail n=282

Finance n=822

Government, Education, and Nonprofit n=176

Health, Biomedical, and Pharmaceuticals n=188

Manufacturing, Energy, and Construction n=233

Technology, Media and Telecoms n=399

Other n=370

Consulting and professional services n=752

221 (29%)

68 (9%)

130 (17%)

43 (6%)

54 (7%)

61 (8%)

111 (15%)

64 (9%)

Consumer goods/Retail n=252

36 (14%)

127 (50%)

17 (7%)

8 (3%)

6 (2%)

13 (5%)

25 (10%)

20 (8%)

Finance n=835

67 (8%)

26 (3%)

570 (68%)

21 (3%)

19 (2%)

31 (4%)

36 (4%)

65 (8%)

Government, Education, and Nonprofit n=95

15 (16%)

0 (0%)

11 (12%)

54 (57%)

1 (1%)

3 (3%)

5 (5%)

6 (6%)

Health, Biomedical, and Pharmaceuticals n=152

24 (16%)

2 (1%)

6 (4%)

9 (6%)

85 (56%)

7 (5%)

10 (7%)

9 (6%)

Manufacturing, Energy, and Construction n=236

28 (12%)

18 (8%)

35 (15%)

12 (5%)

9 (4%)

89 (38%)

21 (9%)

24 (10%)

Technology, Media and Telecoms n=306

40 (13%)

23 (8%)

17 (6%)

13 (4%)

5 (2%)

10 (3%)

178 (58%)

20 (7%)

Other n=305

32 (11%)

18 (6%)

36 (12%)

16 (5%)

9 (3%)

19 (6%)

13 (4%)

162 (53%)

Wharton MBA Alumni Survey 2014 – Industry Changes

Tips for Recruiting in Retail

Be Smart

• Recognize the dual-path nature of retail recruiting and prepare for a parallel search

• Do your research and understand the trends / business of retail; show that you love more than just the products

Show Your Passion

• Why retail? Why company X?

• Visit stores. Talk to sales associates.

• Get involved with Retail at Wharton (or beyond)

• Network and build relationships, starting with 2Ys and alumni

• Ask great questions

Be Humble

• Show respect, but have a fresh eye; polite, but with a point of view

• No MBA entitlement; exhibit a desire and willingness to learn

Tips for Career Switchers in Retail

Seek out opportunities to increase your retail exposure and experience, and build up your resume:

Retail Club 1Y leadership positions

Field Application Projects

Academic year internship or short-term project

Work in retail store (part-time/temp)

Other: Fashion blog, Etsy store, Fashion Week volunteer, etc.

Retail Recruiting Timeline

Interviewing

Sept Oct Nov Dec Jan Feb March April May June

SELF- ASSESSMENT

RESEARCH & STRATEGY

RESUME DEVELOPMENT

NETWORKING

COVER LETTER DEVELOPMENT, APPLICATIONS,

INTERVIEW PREP

INTERVIEWS

OFFER MANAGEMENT

TRANSITION TO

WORK

Create a document that complements your resume and reflects your interest and qualifications for specific jobs. Apply and prep for interviews.

Evaluate job offers and manage employer relationships

Prepare for internship

Mature Enterprise

Explore your interests, motivators and skills.

Research and identify target industries, functions and geographies . Create a job search plan, including a prioritized target list of firms.

Create a document that reflects your passion, experience and skill set (relevant to the position)

Engage in conversations to build relationships, gather information and identify potential opportunities

Prepare for and engage in conversations about your interest and qualifications for specific jobs

Hiring Data

Retail Job Posting Timeframe

0

10

20

30

40

50

60

70

Retail Full-Time and Internship Job Postings 2015-2016

2016 Internship Offers by Sector 1%

68%

10%

3%

1%

17%

Beauty E-commernce Fashion/LuxuryFood & Beverage Off-Price Retailers Other/Specialty

Functional Breakdown of Accepted Retail Offers

* Class of 2016 data

18%

13%

13%

13%

13%

11%

5%

6%

4% 4%

2016 Internships

Corporate Strategy General Mgmt/Leadership Program

Operations/Supply Chain Other / Unreported

Product/Brand Marketing Product Development/Mgmt

Business Development Merchandising

Analytics/Data Science Finance

27%

24% 16%

11%

7%

5%

4%

2% 2% 2%

2016 Full-Time

Product Development/Mgmt Operations/Supply Chain

Product/Brand Marketing General Mgmt/Leadership Program

Business Development Entrepreneurial Management

Merchandising/Buying/Planning Analytics/Data Science

Corporate Strategy Other / Unreported

Companies That Made Internship Offers in 2016 *Preliminary Data as of 8/17/16

Luxury/Beauty Apparel Mass Merch/ Dept Stores

E-Commerce Other

Kate Spade

La Perla

PVH Corp.

Sidney Garber The Estee Lauder Companies Inc.*

Theory

Marc Jacobs

ANN INC.

Anthropologie

Criquet Shirts

Gap Inc.

MM.LaFleur

Nike, Inc.*

Under Armour

Urban Outfitters

P.Mai

Tracy Anderson

Advisors

Victoria’s Secret

Burlington Stores

Nordstrom

Petco

Amazon

Boxed

Blue Apron

Everlane

Groupon

GrubHub Seamless

Jack Erwin

Hello Fresh

Happiest Baby

MeUndies

PetFlow.com

Rent The Runway

Rocksbox

Try Walmart eCommerce*

Wayfair The Honest Company

Zady

Apple, Inc.

Bloom That

Burger King*

Dick's Sporting

Goods*

HSN Liberty Eagle (Subway

East Africa) Moet Hennessy

Master & Dynamic

Total Wine & More

*Companies that sponsored international students to work in the US in 2016 Companies in bold are considered mature recruiters.

Companies That Made Full-Time Offers in 2016 *Preliminary Data as of 8/17/16

Luxury/Beauty Apparel Mass Merch/ Dept Stores

E-Commerce Other

The Estee Lauder Companies Inc.*

Tiffany & Co.

H&M

Nike, Inc.*

Under Armour

Revolve Clothing

Soludos, LLC

BJ’s Wholesale

Nordstrom

Petco

Amazon

Hello Fresh

Jet.com

M.Gemi Walmart

eCommerce* Wayfair

The Honest Company

Zady

Apple, Inc.

Burger King*

CVS Health

Dick's Sporting

Goods*

M.H. Alshaya Co.

Rakuten, Inc.

Tula

*Companies that sponsored international students to work in the US in 2016 Companies in bold are considered mature recruiters.

Source of Internship Offers: Class of 2017 *Preliminary data as of 7/2/16

55%

17%

16%

5% 4% 1% 1% 1%

Wharton Job - On Campus RecruitingPersonal Networking ConnectionsWharton Job - Job PostingOtherWharton Alumni ContactTrek NetworkingCareer FairMBA Career Management Contact

35%

23%

20%

8%

6%

6% 2%

Wharton Job - On Campus RecruitingPersonal Networking ConnectionsWharton Job - Job PostingOtherMBA Career Management ContactCareer FairWharton Alumni Contact

All Industries Retail

Timing of Retail Internship Offers: Class of 2017 *Preliminary data as of 7/6/16

0

5

10

15

20

25

Tech Retail Retail

Timing of Retail Full-Time Offers: Class of 2016 *Preliminary data as of 7/6/16

0

1

2

3

4

5

6

7

8

9

10

Tech Retail Retail

Internship Salary Breakdown: Class of 2017 *Preliminary Data as of 7/1/16

Retail Number Accepted 41 Number Accepted (with salary data)

35

% of Accepted 5.47% Monthly Salary Range $867-$11,700 25% Monthly Salary $4,000 Median Monthly Salary $6,000 75% Monthly Salary $7,500 Number with Sign-On Bonus

1

Median Sign-On Bonus $50

*Data is for Retail industry only (excludes big tech firms which fall under Tech industry). Salary median for ALL retail (including big tech) is $7,300.

FT Salary Breakdown: Class of 2016 *Preliminary Data as of 7/1/16

Retail Number Accepted 17 Number Accepted (with salary data)

17

% of Accepted 3.07% Annual Salary Range $79,440-$120,000 25% Annual Salary $95,000 Median Annual Salary $100,000 75% Annual Salary $115,000 Number with Sign-On Bonus

7

Median Sign-On Bonus $15,000

*Data is for Retail industry only (excludes big tech firms which fall under Tech industry). Salary median for ALL retail (including big tech) is $117,000.

Wharton MBA Alumni Survey 2014 - Total Compensation Median (25th percentile/75th percentile)

2010-2014 2005-2009

Retail n=102

$149,075 ($109,000/$210,000)

D 30

$202,500 ($153,650/$253,750)

D 18

Retail at Wharton

Wharton Graduate Retail Club

42

Retail Conference

• Date: February 24, 2017 • Past Keynotes:

- Andy Dunn, CEO and Co-Founder of Bonobos

- William Lauder, Executive Chairman of the Estée Lauder Companies

Career Treks Charity Fashion Show

• Date: March 16, 2017 • Purpose:

- Proceeds go to charity

• Past sponsors include: - Theory, Lilly Pulitzer,

Bonobos, Anthropologie

Retail 101

• Date: Sept/Oct 2016 • Purpose:

- Prepare students for retail recruiting

• Format: - Panels, speakers,

workshops, networking lunches

• 180+ Members • 5 Annual Treks • Wharton Retail Conference attracts 100+ attendees

Fast Facts:

MBA Career Management

MBA Career Management

The Baker Retailing Center is an interdisciplinary research center with a mission to produce cutting edge knowledge to enhance all aspects of the retail world. The Center helps students to learn more about the opportunities in the retail industry through Center programs and events, academic courses, retail club activities, international trips, and career placement.

INCREASING STUDENT KNOWLEDGE OF RETAIL/FASHION

Baker Executive Speakers Series Baker Lunchtime Speaker Series

Industry Career Treks

MBA Retail Conference

Retail Career Development Advising

Penn Fashion Week

435 Vance Hall 3733 Spruce Street bakerretail@wharton.upenn.edu 215-5-RETAIL bakerretail.wharton.upenn.edu/

• TUESDAY, SEPTEMBER 20, 2016 • 3:00-5:00PM • VANCE HALL, 4TH FLOOR

LOUNGE (outside room 435 Vance Hall)

• RSVP: here or email bakerretail@wharton.upenn.edu

Wharton Customer Analytics Initiative

Through extensive student programming, WCAI has provided real-world experience and skills to students looking to find successful careers in the customer analytics field. Student programming is a large part of WCAI's mission; we hope to carve out customer analytics as a standalone discipline with a transformative impact across industries. We're dedicated to helping students become effective, data-driven leaders.

MBA Career Management

wcai-mail@wharton.upenn.edu | 215-746-4162| wcai.wharton.upenn.edu

Upcoming Events

Intro to SQL Workshop Friday 9/16/16

(http://whr.tn/29ZDYaD)

Intro to R Workshop Friday 10/28/16

(http://whr.tn/2ak74WL)

Business Analytics Career Expo

Wednesday 11/9/16 (http://whr.tn/2ad0T5F)

Featured Student Programs • Data Challenges and Hackathons • Technical Workshops • Business Analytics Career Expo

Next Steps and Resources • MBACM

• One-on-one advising sign-ups open now; sessions begin 9/12

• Attend career workshops and utilize resources on MBACM student website

• Complete your CareerPath profile with industry preferences

• Work on your resume; submit through CareerPath by 9/18 for MBACM feedback

• Retail Club and Baker Center

• Retail Club Info Session (Sept 12)

• Baker “Welcome Back” Session (Sept 20)

• Retail 101 (Sept/Oct)

• Wharton Community

• Begin networking with your classmates

• Search Wharton offer directory to identify 2nd years and target firms (Note: search criteria includes work authorization status)

Read emails from MBACM for important information on upcoming events and deadlines

Contact Information

Wharton MBA Career Management 50 McNeil Building, 3718 Locust Walk, 215-898-4383

Website: http://mbacareers.wharton.upenn.edu/student General Email Inquires: mbacareers@wharton.upenn.edu

Sugirtha Stathis, Career Advisor

sugirtha@wharton.upenn.edu

Porsha Alexander, Recruiting Relationship Manager porsha@wharton.upenn.edu

Retail Club Co-Presidents

Evelyn Shih, evelynsh@wharton.upenn.edu Jamie Yieh, jyieh@wharton.upenn.edu

Follow MBA Career Management:

@WhartonMBACM

WhartonMBACM

Questions?

Timing of Internship Offers: Class of 2017

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50

100

150

200

250

300

350

Timing of Full-Time Offers: Class of 2016

0

50

100

150

200

250

300

350

400