The Role of the Company's President in the Retail Shoe Industry: Responsibilities, Knowledge, and External Relations

By Alan Miklofsky | November 1, 2024

Leading with a Strategic Vision

For a retail shoe business, the President must set and articulate a clear, forward-thinking vision that aligns with customer expectations, market trends, and the brand's unique position in the industry. Their leadership involves understanding the nuances of the retail shoe market—such as evolving consumer preferences, seasonal buying patterns, and competitor positioning—while setting realistic goals that executives and front-line staff can implement.

Example: If the business wants to focus on expanding into online retail, the President needs to understand e-commerce platforms, how online presence impacts brick-and-mortar sales, and how inventory management changes with online ordering. This knowledge allows the President to drive a cohesive strategy across in-store and online channels and set achievable growth targets.

Essential Knowledge Base for Departmental Supervision

The retail shoe industry requires a President to have a strong knowledge base across all areas of the business, ensuring that they can work closely with each department and make balanced, informed decisions. While expertise in every area is not necessary, a foundational understanding helps the President to set realistic expectations and offer effective guidance to team leaders.

1. Finance and Accounting: Financial health is critical for a retail shoe business, where margins are often tight. A President with knowledge of accounting practices and financial management can interpret monthly sales reports, profit margins, and cash flow statements, allowing for data-driven decision-making.

- Working with the Company’s CPA: The CPA (Certified Public Accountant) is a key partner for the President, especially if there isn’t a CEO handling financial matters. The President collaborates with the CPA to review financial statements, understand tax implications, and ensure accurate bookkeeping. This partnership is essential for maintaining cash flow, managing tax obligations, and preparing for audits.

Collaboration with External Professionals

For a retail shoe store, certain functions may require expertise beyond the internal team, particularly in financial and legal matters. If the company does not have a CEO who handles these responsibilities, the President must work closely with external professionals like the CPA and the company attorney.

1. Collaboration with the CPA: Financial accuracy and accountability are essential, and the CPA serves as a strategic partner, providing insights that shape the President’s financial decisions. The CPA assists with:
    - Preparing accurate financial statements and reports, including profit and loss statements, balance sheets, and cash flow analyses.
    - Advising on tax strategies and ensuring compliance with tax regulations.
    - Conducting audits to identify financial health improvements or red flags.

Direct Oversight of Store Managers and Front-Line Employees

The President’s role extends to direct engagement with store managers and occasionally front-line staff to ensure the company’s goals are executed on the ground. In a retail shoe business, store managers play a critical role in daily operations, making the President’s oversight essential for consistent brand representation across locations.

- Setting Clear Expectations: The President ensures that store managers understand the company’s objectives and expectations, whether related to customer service, store presentation, or inventory management.
- Coaching and Mentorship: A President who takes an active interest in store management can mentor managers, equipping them with leadership skills and helping them address store-level challenges.

Continuous Learning and Market Awareness

In retail, market trends and customer preferences change rapidly, requiring Presidents to stay informed and adaptable. Regularly consulting industry publications, attending trade shows, and participating in networking events helps the President understand industry shifts, new competitors, and emerging technologies.

1. Learning from Industry Peers: Networking with other retail Presidents, attending trade association meetings, and joining forums offer opportunities for shared learning, insights into best practices, and potential collaboration.

Conclusion

The role of a company President in the retail shoe industry is multifaceted, requiring a blend of strategic oversight, detailed knowledge of retail operations, and effective collaboration with external professionals like the CPA and attorney. By developing a comprehensive understanding of finance, inventory, customer service, HR, and marketing, the President can make informed decisions that align with the company's long-term vision. Engaging with store managers and front-line employees further enables them to foster a positive culture and ensure that the company remains competitive in a fast-evolving market. Presidents who embrace continuous learning and maintain close relationships with legal and financial advisors build resilient, forward-thinking organizations poised for success in the retail shoe industry.