Canadian retailers told to go global
Toronto Star
By Dana Flavelle
Canada’s retail managers are among the best in the world and are just as good as their U.S. counterparts, according to a new study on Canada’s competitiveness.
But retailers that expand globally have “dramatically better management,” according to the study by the University of Toronto’s Institute for Competitiveness and Prosperity.
Very few Canadian retailers operate outside Canada and several that have tried to expand south of the border have failed. It’s unclear which comes first: a company’s global ambitions or better management teams, the study said.
“More than likely there is a virtuous circle at work – firms with global aspirations need effective management to expand, and expanding firms attract better managers,” said Roger Martin, dean of the university’s Rotman School of Management and chair of the competitiveness institute.
The study calls on government to focus more resources on educating Canada’s managers.
The working paper is the 13th in a series aimed at examining what Canada and Ontario need to do to become more competitive. The institute has been critical of government programs that focus mainly on science, engineering and technology
It’s not enough just to invent things, said Jim Millway, the institute’s executive director.
Canada is not achieving its full prosperity potential, relative to the U.S., its closest trading partner, the institute noted.
A key component of closing the gap is more innovation, the institute said. Strong management practices are a critical contributor to more innovation, the institute said.
The study was based on interviews with senior managers at 661 retail outlets in total, including 409 in Canada, 152 in the United States, and 100 in the United Kingdom.
