Jim Boscov, chairman and CEO of Boscov’s Department Store LLC, spoke for more than an hour Tuesday morning to the Berks Family Business Alliance.
Before a full ballroom at the DoubleTree by Hilton, Reading, Boscov mostly discussed his career in retail and working for the family business, which began as a single store in uptown Reading and is now a $1.2 billion business with 49 locations in eight states.
He also covered other topics and took questions from the audience. They ranged from the coronavirus pandemic to current logistical issues to the company’s website.
Reacting to COVID
When the pandemic grew quickly in March 2020, Boscov was on a buyers’ trip in Cancun, Mexico.
Like just about every other business, Boscov said, “We didn’t have a COVID playbook.”
After finding out that Gov. Tom Wolf was shutting down businesses across the state to contain COVID, a task force consisting of 17 people from all areas of the company was quickly established.
“It was every area of the business,” Boscov said, “from security, merchandising, advertising, real estate, financing, maintenance. How do you shut down 48 stores and what do you do with 8,200 employees? What’s the relationship with the banks and the cash situation? We had $50 million of product on order and $7 million of advertising that we were committed to over the next four weeks.
“No one person can answer those questions, but it worked like a charm.”
It first met in Boscov’s suite in a Cancun hotel, but continued to meet virtually, three times a day, after everyone returned to Pennsylvania. Not only did it help the chain gradually reopen during the summer, it also opened lines of communication within the company.
“We addressed every single thing,” Boscov said. “Compressors in stores, insurance policies, all the little details. I loved it and so did the team. We loved it so much and afterwards after we opened, we said let’s keep it going. Now we have monthly senior management meetings. Everyone feels they are part of the program and want to keep it going.”
COVID vaccine mandate
“We’re all having to deal with it,” Boscov said of a Occupational Safety and Health Administration plan to have businesses with more than 100 employees ensure they are either vaccinated or tested daily. “The government wanted businesses to mandate, but businesses wanted the government to mandate.”
Currently being held up in the courts, the Biden Administration’s plan will require businesses to implement vaccination plans by Jan 4. Unvaccinated employees were required to start wearing masks indoors at the workplace on Dec. 5.
When dealing with employees, Boscov said he’s taking a tough line.
“I established a travel policy for buyers because it’s important for them to get into the market and very important for them to get into the stores,” Boscov said. “I said while you don’t have to get vaccinated at this point, I am saying you can’t go to the stores, you can’t go to the market, unless you’re vaccinated.
“Throughout the pandemic one of the concerns was how we kept our people safe and let customers know it’s safe to shop at Boscov’s. Everyone on the sales floor wears a mask. I’ve taken a pretty tough line. I’ve gotten pretty nasty notes, especially, from people in the western part of the state.”
Boscov said he met with two buyers who were hesitant about the vaccine and told them that they could get a medical or religious exemption. However, that would prevent them from doing their jobs because they can’t go to the market.
“I’m not going to change our policy,” Boscov said. “I took a tough line. They accepted that being vaccinated was OK. I’m not going to win a popularity contest and I’m OK with that.”
Opening in Ohio
Boscov’s opened its Niles, Ohio, location on Oct. 9, the 49th store overall and second in Ohio. Located at the state’s largest mall complex, Eastwood Mall, Boscov said it achieved record-breaking sales.
The company also raised more than $100,000 for local nonprofits over the three-day event that included music entertainment and a fireworks display. A video of the event, showed hundreds of shoppers lined up for the opening.
It was right out of the marketing playbook written by the late Albert Boscov, Jim Boscov’s uncle.
“Albert would’ve loved that type of opening,” Jim Boscov said.
Supply chain issues
In recent weeks, consumers have noticed skimpy inventory on store shelves across the nation. Not a good thing as the holiday shopping season picks up.
Boscov said the company has been working closely with vendors to keep the shelves filled, finding solutions if a product is in short supply.
“Boscov’s is full of inventory and we are working very closely with vendors,” he said. “We’re on the phone all the time. If something is going to be late, something else comes early. If something isn’t going to be there, they find a substitute. Freight is certainly going up and it’s certainly has an impact, but I think Boscov’s is going to stay Boscov’s throughout the Christmas season.”
Online
Boscov admitted that the company hasn’t been as aggressive with internet shopping as its competitors.
“When I came back to Boscov’s we had a small web presence and it was not profitable,” he said. “Albert tasked me with running it and also said if it’s going to grow, make sure it’s profitable and doesn’t dilute from the rest of the company.”
Growth was slow, but steady, over the years.
“We grew from 3% of the business,” he said, “to post-COVID 10% of the business. We’re in the process of re-platforming right now. March 1 next year, you will see a much more nimble site that we will promote. I don’t think we’re ever going to make the same efforts Macy’s made because when you buy a dress, you want to try it on.”
Source: Berkshire mont
Be First to Comment