Retail entrepreneur Theo Paphitis has stepped in as Robert Dyas’ interim chief executive as the chain struggles with falling sales and changing consumer habits.
Paphitis, who owns the company through Theo Paphitis Retail Group, said he has taken a more direct role in running the company in recent months to stabilize operations and reshape the brand’s strategy, in what he called a “testing period” for the retailer.
The 66-year-old businessman, widely known for his appearances on the BBC’s Dragons’ Den, said he increased his involvement last summer to “steady the ship and realign strategic direction” as the company faced a tougher trading environment on Britain’s high streets.
Robert Dyas, which operates 93 stores across the UK, is struggling with falling footfall and weaker consumer demand. Like-for-like sales fell 5 percent for the year through the end of March, which the company blamed on lower shopper traffic and unusually mild seasonal weather that dampened demand for some of its core products.
The retailer also saw a decline after seeing sales rise last year at the height of the cost of living crisis. Back then, customers flocked to purchase energy-saving products like air fryers, dehumidifiers and related accessories, driving demand across the industry. However, as household spending habits normalized, sales momentum slowed.
In response, the company said it has begun implementing a series of strategic changes aimed at revitalizing the brand. This includes revamping its product range, increasing its focus on traditional home and garden categories and expanding in-store services to drive customer loyalty.
Although Robert Dyas has endured a more difficult trading period, other companies within the group have reported stronger performance. Stationery chain Ryman delivered improved results, with earnings before interest, tax, depreciation and amortization rising 20.5 percent to £1.94 million in the last financial year. The company expects this figure to rise further to around £3 million in the current year.
Ryman’s recovery was driven by improving margins, expanding its own-branded craft range and launching additional services in both physical stores and online platforms. The retailer is also experimenting with new store formats, including combined stores with Robert Dyas, partnerships with the Post Office and the launch of a new “Ryman Design” concept.
Meanwhile, lingerie brand Boux Avenue also delivered improved results and reported a significant increase in profitability. Profits improved by £6.4 million after sales rose 6.9 percent and profit margins increased. The company expects EBITDA to reach at least £4m in the current financial year, following strong Christmas and Valentine’s Day sales which delivered double-digit growth.
Over the course of several decades, Paphitis has built a reputation for turning around struggling retail businesses. He first gained notoriety after rescuing the Ryman stationery chain from bankruptcy in 1995. He later entered the lingerie industry by acquiring the UK branch of La Senza in 1998 and successfully reviving the company before selling his shares in 2006 for a reported £100 million.
He then founded Boux Avenue before expanding further into the homeware sector through the acquisition of Robert Dyas in 2012 for around £10 million. The purchase came after the 140-year-old hardware and home goods retailer was put up for sale by its lenders.
Reflecting on the challenges facing traditional retailers, Paphitis said heritage brands must constantly adapt to remain relevant at a time when consumer behavior is rapidly shifting towards online shopping and digital marketplaces.
“We live in a time where other traditional brands such as WH Smith have disappeared from the high street,” he said. “It is a stark reminder to retailers that they must continually evolve, remember their purpose and give customers a reason to visit their stores.”
He added that modern consumers are more willing than ever to switch between brands and retailers due to the abundance of online offerings.
Despite the difficult trading environment, Paphitis believes Robert Dyas can regain momentum through sharper product positioning, stronger store experiences and a renewed focus on its core home and garden categories.
The appointment signals a more hands-on approach from the entrepreneur as he seeks to steer the retailer through what he says is one of the most difficult times for brick-and-mortar stores in recent years.
