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CEO North America > Opinion > Leadership Lessons for Navigating the Future of Retail

Leadership Lessons for Navigating the Future of Retail

in Opinion
Leadership Lessons for Navigating the Future of Retail
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Hansueli Loosli doesn’t do small scale. Over a 30-year run at Coop Genossenschaft — including 24 years as CEO and chair — he helped transform a Swiss cooperative into a European retail and wholesale powerhouse, spanning everything from department stores and supermarkets to Cash + Carry foodservice, restaurants, production houses, and specialty retailers.

Now, with a sharper focus and no signs of slowing, Loosli sits on the boards of some of Europe’s most influential businesses: as chair of Swiss aircraft manufacturer Pilatus Flugzeugwerke AG, on the supervisory board of Austrian grocer Spar, and as an advisor to shoe retail giant Deichmann.

Looking back at your time in the industry, how have you seen retail, and the people within it, evolve?

A lot has changed, especially in the product ranges. Healthy nutrition plays a much greater role today, with an increase in vegan and vegetarian options. But at its core, you still have to be the best in your catchment area. A good trader is fast and flexible, but also willing to learn and adapt.

People in retail have changed a lot, too — especially in the competencies we now see in the head offices. In IT and marketing, completely different qualifications are required today than in the past. And when I look at the stores, they’re now looking for excellent sales and service qualifications and no longer for someone who can manually process 100,000 orders as fast as possible. It’s all about customer proximity and service, both physically and digitally. Naturally, the customers and their needs have changed as well.

Under your leadership, Coop entered wholesale and international territories. What were the driving forces behind these initiatives, and how do you view their success today?

At the beginning of this century, Coop had one strong leg in food and non-food retail — but lacked a second pillar that could offer greater resilience for the business. We wanted to build something that matched our core competencies and grounded in consumer trends. People increasingly had less time to cook, which we saw as strong growth potential in out-of-home consumption. At that time, we also had some luck: Rewe was not happy with its operations in Switzerland and was looking for a partner in the cash-and-carry sector. In 2004, I agreed with Rewe’s then-CEO Hans Reischl that a merger of our wholesale operations would benefit both sides. Over the following years, our joint venture expanded to Germany, Poland, Romania, and France. Rewe eventually decided to exit, and in 2011 we took full ownership of Transgourmet, our European wholesale business. We had started our wholesale operations with revenues of CHF 500 million; today, Transgourmet is a CHF 12 billion company.

In the quest for sustainable value growth, what strategies should retailers prioritize — and how crucial is diversification to achieving that success?

Every company must first ask themselves: “Where is my core business and how do I focus on it?” Only then can diversification be a consideration. When developing successful strategies, companies should be aware that, today, most goods can be sourced globally, and the limitations once posed by logistics and quality are no longer as restrictive as they used to be. In addition, the IT side needs to be top-notch, as it allows deep analytics of customer preferences, product ranges, and business efficiency levers. But there is another factor: “Craft, craft, craft,” meaning you need the right professionals with deep expertise. You can see this all over the world — the companies that are successful are those that truly understand their craft and do not stand still. Successful companies also invest consistently — 80%, or even 100%, of their cash flow. It always catches up with you at some point if you optimize short term just to retain certain profit levels.

In your opinion, what are the biggest challenges for retail in the next five to 10 years?

On the customer side, you need to continuously create new ideas to be among the best. But I see the biggest challenge in the need for personnel — in the headquarters, stores, and logistics. There is competition with other industries for the best people and without the right team, success is difficult. I believe retail margins won’t increasese. At best, they will remain constant, but realistically, mounting  pressure could push them even lower. Therefore, high discipline is always needed on the cost side, otherwise the calculation won’t add up.

How would you describe your management style — and what do you believe shaped your success as a leader?

You have to genuinely like people. If you don’t, you’re in the wrong place as a  manager. You need to connect with customers and be able to motivate your team. Also, the board must work as a team— it can be fatal if everyone only thinks within their own silo. As a CEO, you constantly battle those tendencies, regardless of industry.

You benefit from a team with as little hierarchy as possible. At the same time, the leadership team has to be decisive. If something goes wrong, they have to correct it. Under no circumstances should a manager say: “We still have to decide that,” and then fail to follow through. It’s all about doing!

Vision is one thing — execution quite another. How did you bridge that gap to bring your business ambitions to life?

The core foundation has always been having a ’hungry team’ around me. For leaders, this means being both encouraging and demanding — giving and taking. As a boss, it’s important to lead by example. That leaves an impression and draws in new supporters, who want to be part of the team. When a good team and leadership dynamic are in place, it becomes much to recover from setbacks.

Finally, what is your biggest tip for a young professional who is interested in a management career in retail?

Do it and learn the business from scratch! There is no industry where young people can lead so many people so quickly, and where they can develop their leadership skills so systematically. In retail, you’re visible every single day — to customers, colleagues, and senior leadership — and that visibility accelerates your career. It is immediately noticeable when they work successfully, and there are many ways to move forward. Commitment, credibility, and trust make the difference.

Read the full article by Oliver Wyman

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