Richard Harpin is founder and chairman of HomeServe and Growth Partner. After Wilko’s collapse, he shares his thoughts on how we can revive our struggling high streets.
Charnwood Street, just outside Leicester city centre, was home to one of the most unique little shops in the area – and provides a vital clue to how we can breathe new life into Britain’s high streets.
There, at number 131, James Wilkinson and his fiancé Mary Cooper opened a hardware store that was self-service, an approach that people clamored for in 1930.
The business prospered and Wilko was born, always adhering to the founders’ core philosophy of giving customers what they wanted and that everyone “got a good deal.”
Today Wilko is on the precipice and entrepreneurs like me know why. It forgot its purpose, its uniqueness.
Wilko fell under administration last week, putting 12,000 jobs and 400 stores at risk
Yes, supply chain issues, a hangover from a lockdown, increased competition, cost of living and inflationary pressures contributed.
But Wilko’s more than 400 stores and more than 12,000 employees face a desperately uncertain future as the company’s leaders lost that customer loyalty.
What they wanted, what they were willing to pay, how and where they wanted to shop.
Wilko’s leaders were too slow, too unreachable and too unwilling to learn. The uniqueness of the brand withered.
Meanwhile, Greggs, B&M and Next thrive because their leaders know exactly what those companies stand for and what their customers want.
When M&S this week reported an estimated increase in pre-tax profit from £495m to £560m – with a similar increase expected next year – it justified a strategy focused on quality and value, investment in technology and store refurbishments .
Earlier this year, private equity firm Brookfield bought my HomeServe business for £4.1 billion. It’s the biggest I’ve built with nearly 9 million customers, but along the way we’ve made a lot of mistakes and learned even more lessons.
First we didn’t have the right business model, then we didn’t get the international expansion right at first. But every time we turned a corner, it was because of our laser-like focus on what mattered to the customer.
The business we built for them depended on the relationship we built with them.
Richard Harpin founded Homeserve
Today, the companies that really get this concept are the smaller stores, independent shops or pop-ups, run by entrepreneurs with a great idea, contagious enthusiasm and close customer relationships.
NEOM Organics and Gymshark are both good examples of this.
As a teenager I set up a mail order fly tying business and loved talking to customers.
At one of my “pop-up” trading events, a woman picked up one of my fish flies, placed it next to her ear, and jokingly said, “This would make a great earring.”
It did. And within a few months I was selling them in hair salons all over the country. All because I listened, learned and responded. At speed.
Today I use 45 years of insights to help others grow their businesses and drive a regeneration of our city centers. I’ve already invested £55 million to help entrepreneurs develop their businesses and now I’m doubling it.
Companies like Passenger, an ethical outdoor fashion brand whose incredible online growth has been fueled by its authentic sustainability credentials. It knows what it is.
When Westminster Council recently announced a brilliant new plan to transform a depressingly run-down Oxford Street in London, I was thrilled. It’s a blueprint that can be rolled out across the country: The local government is working with landlords to offer a six-month rent-free opportunity to entrepreneurs who already offer something unique online, to build a brick-and-mortar business.
Those who participate in the scheme to fill empty stores can build on their digital success and develop business skills.
And I know how to make them successful. I recently published a guide – Eight secrets for a £billion company – and three are particularly relevant.
First, ensure a robust omnichannel strategy. Virtual and physical must work together, feeding each other, with digital marketing and advertising complemented by more traditional methods. Use data to measure success and act quickly on those results.
Second, copy and rotate. If something works well with a competitor, understand why and then apply the approach yourself, creating something unique to you. Imitate, but better!
Third, find a coach or mentor. Westminster offers retail entrepreneurs help from those who know what it takes to win in the High Street. Enlist the support and advice of people who have been there, seen it and done it.
When I visited a Wilko store last week, it was clear they had too many categories, uncompetitive prices, and customers weren’t clear on why they would shop there.
It’s a pity, but we need to focus on the future and so my sights are set firmly on a new generation of companies, channeling the spirit of 131 Charnwood Street.
Because in a multiplatform, omnichannel world, some things have not changed: be unique and always listen to the customer.
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