From "Delegating" to "Developing"
vol.1381
Supermarket Valor (Valor Holdings), which operates over 300 stores primarily in the Tokai region, as well as in the Koshin'etsu, Hokuriku, and Kinki regions, has received the Minister of Agriculture, Forestry and Fisheries Award at the "Food Industry Mottainai Awards".
〈DIAMOND Chain Store online / February 10, 2025〉
From January to May of last year, Valor conducted a pilot test of an "AI demand forecasting and automatic ordering" system at 31 stores, and began full-scale operation across all stores starting in November.
In just four weeks, they achieved a result of an 11.8% year-on-year reduction in food waste loss for the target products.
Such achievements led to this award, but supermarket companies are not only addressing environmental issues, but also
repeatedly innovating in an era of rapid change.
Among them, general retail chains "Don Quijote" and "Lopia", as well as major discount store "OK", are being called the "New Three Great Retailers" and are making great strides.
Why are these three companies so strong?
There is a common thread among them.
"XX Donki" as a gateway to success
First, let's look at Donki, whose unique initiatives have become a hot topic and are frequently featured in the media.
Above all, their system of "delegation of authority" is the secret to their strength.
The "Million Star System" is a personnel system in place, where one "Million Branch Manager" is appointed for every commercial area with a population of around 1 million and is given complete operational control.
Furthermore, at these stores, part-time employees are called "Mates" and are delegated the authority for product procurement, pricing, and sales promotion.
When people are expected to do something, they try to live up to those expectations.
In psychology, this is called the "Pygmalion effect," and it is a design that boosts the motivation of workers.
While that is Donki, recently there has been an increase in more specialized stores with names like "Okashi Donki," "Osake Donki," "Cosme Donki," "HAPPY Donki," and "Kira Kira Donki"—or simply "[Something] Donki."
〈ITmedia Business Online / January 31, 2025〉
Among these, Kira Kira Donki is a store designed to be supported by high school girls and women in their early 20s, but it is creating another benefit beyond just capturing young customers.
That benefit is that young female employees who are close to the target demographic are the ones involved in planning and operations.
Stores for young people have become places that nurture young leaders.
The master of one's own domain, the "sales floor"
In fact, Lopia also has an established system of delegation in place.
At these stores, rather than just entrusting store managers with all decision-making and operations, it is carried out at the sales floor level.
Meat, fresh fish, and produce departments are led by heads known as "chiefs," who have the authority to implement an individual store-focused management style.
<ITmedia Business Online / January 9, 2025>
Chiefs think about sales floor composition like owners of independent shops, and in addition to being able to choose the products they want to sell, they also have the authority to set retail prices.
Because of this, Lopia's product lineup varies by store.
Chiefs' annual incomes rise in accordance with their results, and this individual store-focused management is said to have the benefits of boosting employee motivation as well as accurately capturing local needs.
Shin Yamaguchi, a writer active in the fields of economy, technology, and real estate, says,
At major supermarkets, it is common to see packages of similar sizes lined up within the meat, seafood, and produce departments. In contrast, at Lopia, products of various sizes are lined up, giving the impression that the store layout is not uniform. The "roughness" in a good sense, which comes with individual store management, may bring a "roughness" that provides a leisure-like quality and attracts consumers."
This is how it is analyzed, and indeed, the sense of fulfillment for a chief as the master of their own domain is the rewarding experience that serves as a factor in increasing sales.
We do not evaluate the "process"
At the discount store OK, the store managers and assistant store managers at each location have significant discretionary power to manage "people, goods, and money", allowing them to engage in operations tailored to regional characteristics rather than just reflecting instructions from headquarters.
Furthermore, the unique characteristics of each store are reflected in the sales floor design, and the system is set up so that the store manager conducts product development and management while consulting with employees, ensuring that on-site opinions are respected.
Actually, Uniqlo operator Fast Retailing, Tadashi Yanai attracts attention for his charisma, but in fact, "management by all" is systematized.
While delegating authority, they do not evaluate the process, but judge based on results.
Of course, if you are entrusted with a task but fail to seize the opportunity, you may be demoted, but it seems that a system for second chances is also firmly established.
Don Quijote and Uniqlo both have many people who made a comeback and achieved great success, I hear.
While it is strict, it is also important to create a workplace where you can look forward without fearing failure.
So, from successful retail companies, we can see a "culture of delegation".
This is, of course, an important perspective in various other industries as well.
"Delegating" is precisely why you can "grow"
sales.
On the other hand, business owners and managers are afraid to delegate...
That is exactly why systematization is so important.🤔
Thank you very much for reading until the end today!