Phones 4U has slashed staff sales targets by 30 per cent. Stores now need to hit 70 per cent of their original targets for store management to receive their full monthly bonuses.
On average, stores have seen targets cut by almost a third – one claimed its busy Saturday target had dropped from almost £3,000 gross profit to closer to £2,000, another said Saturday targets were down from £4,600 to £3,000 and another claimed it was down from £3,300 to £2,200.
Staff have also been given the green light to offer cashback of up to £200 officially – and £300 discretionally – to secure sales of lower-end devices on 18-month contracts, up from just £100.
Phones 4U managers told Mobile News the move had boosted morale across the chain as new targets are realistic and bonuses achievable. Reduced footfall and a crackdown on fraud had made targets impossible to achieve.
A staffer in a London store said: "You can’t sell if no one is coming in. We used to be able to ‘street fight’ if there was no footfall, but we’re not allowed to do that anymore so there’s not much we can do to encourage customers in.
"It’s great targets are reduced. We’re more motivated because targets are now achievable. They were unreachable before. There is a buzz about the place again."
Another store sales consultant said: "We’re not doing as many new connections as we used to – because of the credit crunch or because customers are just shopping elsewhere. The company has helped us by reducing targets."
Staff said Phones 4U’s ‘operation Troy’ last Summer to crack down on fraudulent contracts had also slowed ‘sales’.
A staffer said: "A number of staff were sacked. It’s been difficult to hit targets since. A lower target is more appropriate and overdue."