Theo Paphitis slams gov’s ‘disappointing’ attitude towards retail 

Theo Paphitis has called out the government’s “disappointing” attitude towards the industry’s importance, Retail Week has reported. It comes as Paphitis’ retail group, which comprises Ryman, Robert Dyas and Boux Avenue, achieved improved profitability in its full-year results.

Paphitis said he had increased investment in his brands, whilst the government was “doing little to address” challenging conditions for retail.

He told Retail Week: “There is no doubt that retailing, particularly on high streets, has tested us to the full, especially coming out of the Covid-19 pandemic, and the lack of any much-needed acknowledgment from the government of retail’s contribution to local communities and economies continues to disappoint. 

He added that the government “continues to kick the retail business rates can down the road”.

It comes as sales at Ryman edged down slightly in the year to March 2024, when store sales rose, but ecommerce was slightly down as the retailer focused on profitability in the latter channel.

EBITDA of £2.7m marked a £4m improvement year-on-year, while Ryman’s trading margin improved as footfall rose in city-centre locations, which had been hit hard during the pandemic.

The stationer also repaid a £5m Coronavirus Large Business Interruption Loan last month, and has launched initiatives such as Ryman Design stores, an app and a loyalty scheme.

Paphitis said: “I am very pleased with the progress made by the Ryman business over the last two years as it recovered from the impact of the pandemic. I increased my personal involvement in the business as CEO 16 months ago.

“As well as increased time in the business, I have invested and committed to further funding to ensure Ryman has the resources to build on this progress.”

Meanwhile, at Robert Dyas, EBITDA was ”broadly in line” with the £0.2m generated last year, despite store like-for-likes falling by 3.2%, hit by factors such as mild winter weather. 

Paphitis said: “Robert Dyas has continued its development and has been successful in offering a truly multichannel proposition to our customers. 

“We have carefully opened new stores, investing in the high street and its communities, and are looking for further opportunities as well as extending our joint stores with Ryman, which our customers have responded well to.”

Finally, EBITDA at Boux Avenue is expected to show an improvement of £2m, having benefited from a trading partnership with Marks and Spencer, and reporting strong performances on Black Friday and Valentine’s Day. 

Paphitis concluded: “I have continued to invest in the Boux Avenue business and, despite a very challenging year to March 2023, I am pleased that progress has been made in the last 12 months. In particular, the momentum since November through our key trading periods is encouraging.”

Formal results for the group for the year to March 2023 are currently being filed.

Listen to our interview with Theo Paphitis on Apple Podcasts and Spotify.