Toy Giant Reveals Employee Ownership Plan

A New Groove for The Entertainer: A British Toy Story of Conviction, Family, and Shared Futures

In an unprecedented decision within UK retail, The Entertainer's founder is transferring his multi-million-pound toy empire to its 1,900 employees. This choice, rooted in deeply personal principles and strategic foresight, ushers in a new era for the well-known high-street brand. It also highlights a shift toward more ethical and durable business frameworks.

The Entertainer’s history is a compelling account of entrepreneurial drive, steadfast belief, and a sincere appreciation for childhood delight. This story now reaches a pinnacle with an exceptional gesture from founder Gary Grant and his family, who are placing their entire ownership into an Employee Ownership Trust (EOT). Through this arrangement, the company's earnings will be distributed among the staff, who will also gain a substantial role in guiding the company's future direction.

Humble Origins: From One Store to a Retail Powerhouse

The story of The Entertainer started in 1981. A 23-year-old Gary Grant and his spouse, Catherine, acquired a small toy store in Amersham, Buckinghamshire. Grant’s formal education ended after one O-level, and his first employment at a local bicycle shop ended in dismissal. Despite this and their lack of toy industry knowledge, their drive and dedication were their main strengths. The early days involved a steep learning curve as the pair became involved in all facets of the operation, from finding suppliers to helping shoppers.

The initial shop, first called The Pram and Toy Bar, was later renamed The Entertainer, a title that perfectly encapsulated the brand’s goal to deliver happiness and fun to kids. The enterprise soon established itself, and a second location was launched in the adjacent town of Beaconsfield by 1985. This marked the start of an impressive expansion, making The Entertainer a familiar sight on UK main streets. Its growth was methodical and well-planned, concentrating on offering a diverse selection of toys at reasonable prices with outstanding customer support.

A Decade of Progress: Benchmarks and Growth

The 1990s represented a time of major expansion for the company. Opening a third outlet in Slough in 1991 was a pivotal moment. By the new millennium, the chain had grown to 25 locations nationwide. This swift development was driven by a mix of internal growth and smart commercial moves. The company launched its online store, TheToyShop.com, in 1999, acknowledging the rising significance of digital commerce in retail.

The new century ushered in more achievements. The 50th outlet debuted in 2008, and by 2014, the company marked the opening of its 100th location in Aylesbury. This timeframe also saw the company explore global markets. Franchise deals led to store openings in Pakistan and Dubai in 2013, and later a presence in Azerbaijan in 2014. The company's expansion wasn't confined to its own stores; a 2018 agreement with Matalan resulted in 'Totally Toys' sections in 59 of the clothing retailer’s shops.

Strategic Buys: Building a Toy Kingdom

A crucial part of the company's growth plan involved clever acquisitions of other famous toy brands. In a major transaction in 2019, the company bought the Early Learning Centre (ELC) from Mothercare for up to £13.5 million. This purchase was a strategic triumph, incorporating a cherished British brand with a long history of fostering early childhood development into The Entertainer's portfolio. The agreement covered ELC’s popular toy lines, like Happyland, and its network of 80 outlets inside Mothercare stores plus 400 international franchise locations.

The ELC takeover was succeeded by another decisive action in December 2018. The Entertainer saved the Spanish toy seller Poly from going out of business, protecting 57 stores and 350 positions. This not only broadened the company's global presence but also showed its dedication to safeguarding jobs and bolstering the toy sector. These purchases, combined with the creation of its own toy line, Addo Play, have cemented the company's status as a leading force in the worldwide toy industry.

A Christian Foundation: A Business Forged on Principles

The success of The Entertainer is deeply rooted in a solid set of Christian principles that have directed Gary and Catherine Grant from the start. This guiding philosophy is more than a minor detail; it’s a core component of its identity, greatly influencing its operational methods. One of the most prominent examples is the policy of keeping stores closed on Sundays. This choice, aimed at letting staff have time with their families and for spiritual reflection, has been a key tenet of the enterprise from its inception, upheld despite significant potential financial benefits.

The company’s Christian principles also shape its product choices. The company is also known for its product curation, famously not carrying items that clash with its principles, like toys with supernatural elements. This firm position has cultivated a dedicated customer base of parents with similar beliefs. Moreover, a commitment to philanthropy means the company gives ten percent of its yearly earnings to charitable causes. This dedication to social responsibility demonstrates the Grants' conviction that a company can be a positive influence.

Image Credit - BBC

A Fresh Start: The Employee Ownership Model

The shift to an Employee Ownership Trust (EOT) comes after extensive succession planning. The Grant family decided against a third-party sale, which might have endangered the company’s distinct culture. Instead, they opted to entrust the company's future to its workforce. The transition, expected to finalize by September 2025, will make the 1,900 employees the beneficiaries of the company's achievements.

Under the EOT framework, workers will get tax-exempt bonuses tied to company profits, giving them a direct financial interest in its success. A newly formed Colleague Advisory Board will offer a venue for staff to present their suggestions and influence the company’s strategy. A representative will join the three-person Trust Board. This decision has received acclaim from industry specialists and proponents of employee ownership, who view it as progress toward a fairer and more durable business framework.

The Future for Main Street Retail: An Emerging Pattern

The Entertainer's transition to employee ownership reflects a larger pattern in the UK's retail world. During a period of high-street struggles and financial unpredictability, many companies are seeking new methods to increase durability and cultivate a collective mission. The employee ownership framework, successfully used by firms like the John Lewis Partnership and Richer Sounds, presents an attractive option to conventional corporate arrangements.

By providing employees with a stake in the company, businesses can foster a more dedicated and driven team, resulting in better outcomes and client relations. The Employee Ownership Association notes a sharp rise in companies adopting this model. The Entertainer's choice will probably motivate other retailers to do the same. This pattern hints at a potential future for main street commerce that is more cooperative, community-oriented, and robust against economic headwinds.

A New Focus for the Grant Family

For Gary Grant, relinquishing control is not a step toward retirement. Instead, he is redirecting his focus toward his other major passion: philanthropy. With his spouse Catherine, he established Restore Hope, a charity in Buckinghamshire that assists children and families navigating various difficulties. The charity's efforts, which involve educational aid, guidance, and hands-on help, have made a profound difference in the lives of many within the local area.

The Grants' dedication to charity mirrors their profound beliefs and their wish to create a positive impact. Placing The Entertainer into an EOT can be viewed as a continuation of this mindset, guaranteeing that the enterprise will function in a manner that serves its staff and the broader community long-term. As he transitions from his position as executive chairman, Gary Grant leaves an impressive legacy. He is remembered not only as a prosperous entrepreneur but also as someone who created an enterprise based on conviction, principles, and a true wish to spread happiness.

Image Credit - BBC

A Promising Outlook: The Entertainer's Next Phase

The company's future appears very promising. With a powerful brand, a devoted clientele, and an enthusiastic team, the retailer is well-situated for ongoing prosperity. The incoming CEO, Andrew Murphy, who came aboard in 2023 following a distinguished tenure at the employee-owned retailer, the John Lewis Partnership, offers extensive knowledge and a thorough grasp of the EOT structure.

Murphy has already presented a distinct plan for the future, centered on global growth, strategic alliances, and a steadfast dedication to the company's foundational principles. The company’s ‘Play to Win’ blueprint and its ‘ToyBox’ B2B2C platform are positioned to stimulate expansion. The recent collaboration with Tesco, which involves opening concessions in more than 850 of the grocery giant's locations, serves as a key illustration of the company’s forward-thinking methods. As The Entertainer begins this new stage of its journey, it does so with optimism and a strengthened dedication to its purpose of being the most cherished toyshop, one child and one community at a time.