Timothy Melgund

Unlike many of today’s retail leaders, Timothy Melgund, the boss of greetings cards and stationery retailer Paperchase, may not have earned his stripes as a market trader.

However, those who have met Melgund – who also goes by the name Lord Gilbert Timothy Lariston Elliot-Murray-Kynynmound, or the Earl of Minto  – know he does not trade on his aristocratic background.

One source who knows Melgund says: “He doesn’t talk down to anybody. People know about his background, but he doesn’t raise it. He’s very straightforward.”

Another person, who has worked with Melgund in the past, adds: “He never alludes to his peerage. He thinks of himself as plain Timothy Melgund.”

However, he concedes: “He does have the air of one who was born to lead. There is a certain confidence there, but he doesn’t trade on it.”

Melgund, a trained chartered surveyor, does lead from the front. The first source says: “He personifies Paperchase, he’s meticulous in his product selection and his property selection.

“Once he’s agreed to do something he just gets on with it.”

That can-do attitude has helped him navigate Paperchase through a turbulent time in the past couple of years, as it was hit by forces largely beyond its control. Profits fell as it suffered amid the troubles of its former US parent Borders Inc.

The retailer was knocked earlier when Borders UK collapsed, depriving  Paperchase of 44 concession locations.

However, the canny Melgund adapted by opening shops where Borders stores closed down. His strategy worked. Paperchase increased turnover 3% to £71.3m in the 12 months to January 29, the first full year since Borders UK went bust in 2009.

And after a tough Christmas trading period, Melgund brushed off the difficulties in trading in such conditions. He described last year’s peak period as “great fun” because it allowed him and his colleagues to really focus on the nitty-gritty of retailing.

The 57-year-old can be a tough negotiator, the source who has worked with him says: “He has steely determination and a clear picture in his mind about what’s good for Paperchase.”

While charming and friendly, Melgund is not often seen on the retail party circuit. He can be “guarded” according to the source.

He is professional when it comes to design. The well-spoken product man loves rolling up his sleeves and getting involved, regularly meeting artists and designers to spot the next big thing.

Melgund has told Retail Week in the past that he believes the Paperchase business has more in common with the fashion world than people might think, arguing that Paperchase has to keep up with trends and focus on newness.

Melgund has established Paperchase as the go-to-place for quality cards, stationery and gifts. 

The retailer has had various owners since it was first established as an art supply outlet in London in 1965, including WHSmith, where Melgund has worked, and later Graphite Capital.

Borders Inc controlled Paperchase from 2004 until last year, when Melgund found a new owner before the eventual collapse of the books giant. He led a management buyout backed by Primary Capital.

Since Melgund took the reins of the business in 1996 he found new purpose, says one who knows him. “He has done something that others were unable to do,” he says. Proof that not all the best retailers started out on market stalls.