Comment: A Richer approach to doing business

I first met Julian Richer in 1995, when I arranged an inspiration trip to the UK for then-chief executive of Best Buy Brad Anderson and his senior executive board.

Bricks-and-mortar was all that existed back then, so they had to come from Minnesota and actually walk around stores and talk to staff and customers. Anderson had never seen a Richer Sounds store before and loved the concept. Richer himself was equally impressive and we spent a very entertaining and inspirational day with him.

The story of Richer Sounds is a romantic one. Richer says he started his career aged 14 while still at school, and he opened the London Bridge shop when he was 19. The store still holds the Guinness World Record for having the highest turnover per square foot of any store in the world. He has built the company through slow expansion and fostering a solid culture, maintaining 100% ownership. He now has 53 stores with a turnover of £144.3m and profits of £6.9m.

What is really interesting is that Richer was more than happy to impart his retail and leadership knowledge to others in the early days. He helped Asda’s turnaround with many of his ideas - in particular taking out the hierarchy and transforming the company culture into one based on really looking after colleagues. In a recent survey, 95% of his staff said they loved working for him.

Richer and his company were very much in the limelight in the 1990s, with motivational tools and employee benefits that had not been seen before. His reasoning was simple: a happy workforce provides good customer service, boosts sales, decreases complaints, and reduces theft and absenteeism.

The business is healthy and has survived, despite the onslaught of Amazon and the supermarkets. In today’s economic climate business can seem very dog-eat-dog. After all, when margins are being tightened and the competition is becoming more intense, it is often hard for retailers to concentrate on anything but the bottom line.

That’s why it was so gratifying to hear that Richer has bequeathed his company to his employees in his will. It is testament to the culture at the retailer that Richer has placed its future in the hands of its staff. Richer, now aged 54, still holds 100% of the company he started 35 years ago. He has formed a trust for when he dies, as a result of which the business will become a mutual, similar to John Lewis. Every employee will receive an equal share, and IT director Julie Abraham will step up to become managing director.

Richer Sounds is proud of its difference in mentality to many other businesses - as its website states: “We have no plans to expand quickly. Our intention is to go for controlled growth in an orderly and profitable manner.” What is most important is that Richer’s gesture reaffirms his faith in the employees he has around him - an excellent way of empowering the Richer Sounds team to carry on his good work.

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