More and more CEOs have jumped ship from retail companies in recent months, leaving several companies in the industry scrambling to find top-notch executives. At the same time, finding this talented leadership is becoming harder.
A study cited by Fortune magazine found that 11 more executives left businesses in the industry during the first three quarters of this year than in 2013, out of more than 1,000 recorded CEO changeovers total. Many well-known brands saw CEOs depart for various reasons, from bad management practices to discrimination in the workplace.
Those instances aside, finding a suitable CEO to run a retail business requires intense assessment to make sure the chosen candidate can lead the company in the proper direction.
What makes selecting this person so difficult? Writing for Forbes on the subject, analyst Paula Rosenblum says it's "really challenging" for these businesses to search for the right CEO because the changing corporate landscape has made them harder to control. The modern retail CEO has to be ready to work on a grand scale and at a high degree of competence, moreso than before.
She also said that the growing age of the most experienced CEOs is a factor.
"The unintended consequence of all the mergers and acquisitions of the past 30 years has led us to a place where very few know how to do it right, and they're all getting past the age where they want to, or are otherwise losing their touch," she writes.
One side effect of this could be the importance of newer skills like cybersecurity vigilance in these retail spaces. This year, the CEO of Target, Gregg Steinhafel, famously resigned after his company was victimized by a disastrous data breach. Executives not used to keeping large chain businesses secure could leave gaps in their data protection plans.
To make sure they find a c-level staff who is ready to lead them, retail recruiters should look for someone intent on working with larger businesses and familiar with newer industry norms.
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