In the short term, it meant that our results were much worse, but long term we are now in a stronger position than we would have been.
The Pier was set up in 1989 and by 1999 it had started making a profit. Because of this, we expanded our store portfolio by 50%, growing from 10 stores to 15. But it turned out that the company was not robust enough to deal with that sort of expansion, and we fell back into loss. Life got incredibly difficult.
The typical entrepreneurial decision would have been to cut back on everything, but I kept all the stores open and retained all the staff. It was a brave decision and it paid off.
Today we have 30 stores and about 700 staff. The company was profitable last year and will be even more so this year. I learned that you need to think things through very carefully rather than have a knee-jerk reaction.
My worst move, opening a store in Watford, was an unmitigated disaster. The costs were too high and sales were too low.
We opened the shop in 1992 and were forced to close it in 1996. We kept it going that long to see whether it would take off. But it didn’t, so we eventually bit the bullet and got rid of it. It was only the fourth store we opened, so it nearly broke us. Maybe the timing was wrong. If you look at the demographics of Watford, there was no reason why it shouldn’t have worked. But the next stores that we opened did OK.
Extract from an article by Alison Richards, Founder and MD of the high street home furnishings store, The Pier, writing in Management Today