From the rise of fast fashion to the digital disruption that has reshaped consumer behavior, Shahnila Rashid’s journey through the world of merchandising, buying, and retail strategy has provided her with unparalleled insights into both the triumphs and the challenges that come with the territory.
Starting her career at Topshop, the SR Consultancy CEO’s entry into retail wasn’t exactly conventional. “I started over 30 years ago. The retail landscape was very, very different then. I started at Topshop as a trainee, but prior to that, I’d actually studied science. I got a degree in biochemistry. So retail was not a natural step for me.” Yet, despite this atypical transition, her decision to dive into merchandising marked the beginning of an illustrious career that would see her working with some of the UK’s most recognized brands, such as River Island, Debenhams, and TK Maxx.
Unveiling the Role of Merchandising
One of Rashid’s early revelations was the complexity of merchandising, an often misunderstood aspect of retail. While most people are familiar with the role of a buyer, she notes that the role of a merchandiser was more of a “question mark” back in the day. “Everybody knows or certainly knew what a buyer did. The merchandising piece was a bit of a question mark.” It wasn’t long before Rashid would bring clarity to that mystery, helping to shape the way retailers approached product presentation and stock control.
Her early experiences at River Island offered invaluable lessons about the importance of the overall retail environment. Rashid recalls the brand’s transition from Chelsea Girl to River Island, noting that “it wasn’t just about the product; it was also about the environment.” The simple act of repackaging existing stock under the new River Island brand made a significant impact. “The customers loved it. It really tells you something about the whole package rather than… of course it’s about product, but it’s not just about product, it’s about presentation and how you communicate that with the customer.”
Navigating the Department Store Landscape
Rashid’s expertise grew as she moved from high street fashion into department stores, gaining a deeper understanding of third-party branded relationships and the nuances of managing stock in a large-scale environment. Her work with BHS, Debenhams, and Alders, brands that have either disappeared or dramatically transformed, gave her a front-row seat to the changing tides of the retail industry. “The challenge from online has been quite devastating for them,” she observes, speaking to the pressures that many traditional retailers faced as e-commerce began to dominate the marketplace.
A Game-Changing Period at TK Maxx
It was at TK Maxx where Rashid experienced one of the most rewarding periods of her career. “I was there for nine years, not expecting to be there for nine years. During that time, what a ride.” When she joined, TK Maxx was still relatively misunderstood by consumers and fellow retailers alike. “People in retail as well, I remember my colleagues saying, ‘You must be mad,’” she laughs. Yet, the retailer’s unique off-price model, imported from its American parent company TJ Maxx, would eventually prove its merit.
Rashid’s role at TK Maxx was pivotal in scaling the business, which grew from 30 stores to over 400 across Europe during her tenure. “We went from about £40 million up to £3 billion during that time,” she reflects proudly. Her team played a key role in executing the company’s ambitious growth strategy, navigating the complexities of procuring stock on short notice and expanding into new markets. “It’s quite an art to spinning plates, which merchandising is always doing anyway.”
People-Centric Leadership: The TK Maxx Difference
One of the aspects that set TK Maxx apart, according to Rashid, was its distinctive approach to people management. Unlike many UK-based retailers that prioritized the business side of things, TK Maxx, influenced by its American roots, emphasized the importance of looking after employees. “They always used to say, ‘We’re in two businesses: we’re in the business of business, and we’re in the business of people.’ Look after people, and the business looks after itself.” This philosophy was a stark contrast to the UK retail scene at the time, and it had a lasting impact on Rashid’s leadership style.
A Pivot to Consultancy
After nine years at TK Maxx, Rashid decided to pivot to consultancy, driven by a desire for variety and a need to get more exposure to the digital side of retail. Her first assignment was with the Chinese online player VIP.com, where she helped transition the business from a flash sale site into a multi-channel giant. The experience allowed her to explore a different retail landscape while sharing her expertise in merchandising and business growth. “It was quite an intense experience, but very rewarding.”
Rashid’s current consultancy work spans a variety of industries, from working with private equity firms to helping grassroots charities. One of her ongoing projects is with Nourish Media Group, a company that champions healthy food and supplements. “I joined them last year when I was invited to judge some of their products. I’ve stayed around to help them develop their model because there’s so much opportunity there.” Her passion for health and wellness, a field she has been studying in the background for over 15 years, aligns perfectly with her consulting work in this space.
Helping Grassroots Charities Thrive
Another project close to Rashid’s heart is Kilburn State of Mind, a local grassroots charity that helps individuals struggling with isolation and financial hardship. “There’s tens of thousands of them throughout the country, but funding is a real issue for them.” Rashid has been helping the charity become more business-like in its operations, using her corporate experience to support its mission. “It’s very rewarding to be involved with that.”
Despite her transition to consultancy, Rashid remains deeply connected to her retail roots. She acknowledges the immense challenges that retailers face today, particularly with the decline of the high street and the rise of e-commerce. “There doesn’t seem to be a solution that fits all,” she admits, referring to the struggles many retailers face with high rent and rates. She is particularly concerned about the fate of smaller towns, where high streets have become dominated by charity shops and nail bars. “It’s become quite woeful,” she observes.
Off-Price Retailing: A Model for the Future?
In the face of these challenges, Rashid remains optimistic about the future of retail, particularly when it comes to new business models like off-price retailing. She outlines the fundamentals of this approach, emphasizing the need for agility and a customer-focused proposition. “You want to give them great value, a great brand, and a great price. It needs to be done in a very compelling way.”
Looking forward, Rashid sees significant challenges for retailers in protecting their margins in an increasingly competitive pricing environment. With discounting becoming the norm, she believes that retailers need to find innovative ways to maintain profitability while delivering value to customers. “There’s always a deal to be had,” she says, but it’s about finding the right balance between cost, stock management, and customer engagement.
