Carpet king Lord Harris built Carpetright, then went into business against it. As Tapi takes control of Carpetright assets from the administrator, some may see Harris as a Brutus figure – but that would be wrong, says George MacDonald
Business founders sometimes return in an attempt to salvage the businesses they created.
A similar narrative has been told by carpet specialist Tapi, where Carpetright founder Lord Harris is a leading light.
This week Tapi “rescued” from administration the Carpetright brand, IP and 54 stores, saving 300 jobs – although 1,000 will be lost.
“Some regard Lord Harris as akin to Brutus – having plunged a deadly knife into the business that made him his fortune”
While that’s welcome, some in the industry will regard Lord Harris, one of retail’s great entrepreneurs who rose from the humblest of backgrounds, as more akin to Brutus – having plunged a deadly knife into the business that made him his fortune.
When Harris, winner of Retail Week’s Outstanding Contribution to Retail Award in 2012, sold his stake and bowed out from Carpetright in 2014, all seemed sweetness and light. He wished his successor well, and was in turn lauded for all that he had done at Carpetright.
Just a year later and he was once again at the heart of the action when his son, Martin, along with other former Carpetright alumni, launched Tapi with the ambition of opening 200 shops.
Lord Harris’ role has been “supportive”, and although Martin stood down earlier this year, Lord Harris still “plays a significant role in shaping Tapi into the leading brand it is today through his vision and expertise”, according to the retailer’s website.
Tapi did something right
Within a few years, it was clear that Tapi was parking its tanks on Carpetright’s lawn big time. In 2018, Retail Week ran an article entitled ‘How Carpetright’s founder became its worst enemy’.
Critics claimed the Harris family was using its knowledge of Carpetright – perfectly legitimately, although the detractors thought it left a bad taste – to the advantage of Tapi in fields such as property, and poaching its staff. Meanwhile, the boss of Carpetright, which by that time was undertaking a CVA, blamed decisions made during the Harris years for some of Carpetright’s woes.
“It’s perhaps a testament to Harris’ retail prowess that Tapi has weathered the cost of living and expects to post a profit for 2023”
But it’s the impact of the cost-of-living crisis, felt by many retailers of discretionary home goods, that has ultimately done for Carpetright. The retailer proved unable to navigate that.
In fact, it’s perhaps a testament to Harris’ retail prowess that Tapi has weathered the storm. The retailer, which will soon publish its 2023 results, expects to post a profit, indicating that it has been doing something right.
Martin Harris told Retail Week when he launched Tapi that he thought he could bring something different to carpet customers. He said: “I want people to get excited about the transformational affect a new floor can have on their home. I want them to be inspired. Retail in flooring is a bit bland. I want the shopping experience to be a pleasure not a chore.”
Maybe Tapi’s high Trustpilot score of 4.8 signals that he achieved that ambition, while Carpetright succumbed to blandness as it laboured in search of success. Similarly, with a 4.8 out of five Glassdoor score, it looks like a good employer.
Carpetright has had 10 years
It’s been a decade since Lord Harris and his son left Carpetright. That’s more than enough time for a market-leading business to have adjusted to a shifting landscape and the arrival of a new competitor.
Lord Harris’s advice to would-be entrepreneurs in the interview he gave for his Retail Week Award holds true: “One, they must know it will be hard work and that it will take some time. Two, they’ve got to be determined in what they do. Three, they always have to look at the cash flow and four, they have to look at the competition.”
“It’s been a decade since Lord Harris and his son left Carpetright. That’s more than enough time to adjust”
As it swooped on Carpetright assets, Tapi said in a statement that it was “desperately sad” not have been able to save more of the business – partly on the back of competition concerns.
However, it has behaved honourably by, for instance, funding job advice for Carpetright staff likely to lose their jobs and contacting other retailers who may be able to offer them employment.
There may be a grim irony in the fact that the creator of Carpetright played a part in its fall, but he can’t be held responsible for its failures over the last 10 years.
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