Parisian Department Store :: essays research papers

The Parisian Department store in Birmingham, Alabama clearly needs to rethink their sales strategies to maximize profits. The attention specifically needs to take a look at whether the new compensation program achieves its intended effect of cutting costs while tearaway(a) sales and how this would affect the company as a whole. The company should look at whether this program would be enough fix the problem, or does Jones need to go through more drastic measures?The first major issue was taking a look at HR issues and other related billet issues that Parisian face before they implemented the pay adjustments. As the case studies mentions, Parisian sold towering merchandise, highly personalized service, high commitment to caring for its employees and communities of businesses. Jones?f aim is to raise the performance of the store and restore it to its former reputation as an upscale retailer.ISSUES1. Parisians payroll expenses in 2003 were 8.6% which was higher than those at com parable sister business within SDSG.2. Hourly pay at Parisians was 12.18 and Carson paid an average of 9.54 an hour.3. Selling costs buildup did not work because it only temporarily fixed the issue at hand.A huge issue with Parisian is that their pay system is extremely complicated when it does not have to be. Currently there are three forms of pay base pay only, base plus commission, and commission only. The cosmetics selling cost is also an issue because cosmetics only bring in 15% of sales, but they kick the bucket 22% on payroll sales because of the expertise needed as well as the need to have a body in the embayment at all times when you sign the agreement with the vendor. Taking a look at Chart B should this very theory, Parisian shows a clear up sales of cosmetics of 100 M which is compared to Carson?fs 250M and there people at Parisian get paid more an hour (14 versus 12). It does not make sense for a store that brings in a lot less to pay their people more. The case furt her explains that the high volume salespeople are paid at high commission rates and sometimes that rate can exceed selling cost benchmark. The stores with the ?gsacred cows?h were costing them a fortune have- specifically 14% selling cost. Table C shows that there were certain stores that were not able to have as many employees cover the floor because they had large payroll expenses.