The animal house - Luke Mayhew Interview
Elen Lewis talked to Luke Mayhew, chairman of Pets at Home about driving growth, learning from John Lewis and bunny buggies in the March edition of Think.
Here’s the full transcript.
Pets at Home is one of the UK's fastest growing businesses, what's the key to your growth?
Customers continue to like what we offer. We have a great concept and brand values. These underpin innovative product ranges and excellent colleagues. There are also many growth opportunities available including new shops, multi-channel and marketing, all of which are being pursued actively.
What lessons from your time at John Lewis have you applied to Pets at Home?
There are a number but foremost that if you have is a strong and fast-moving management team and enough passion across the business you are more than half way there. I now wish that at John Lewis we had been able to combine new shops and refurbishments – we had periods of one but not the other. Pets at Home is following a successful dual track approach to investment in the shops. At John Lewis we were right to hold back on significant above the line marketing until the proposition and offer was one new and old customers would clearly see was better. Pets at Home is now ready to spread its wings too.
I see you're in the process of improving your internet site, how important is online to your retail operations?
John Lewis Direct has been a great success. Pets at Home as the market leader in the sector also has the opportunity to be a strong multi-channel player. It is another way to grow and extend the brand and offer reach.
Why do customers visit Pets at Home rather than an independent retailer down their street?
Customers choose most shops because of product range, price, service, experience and convenience. Pets at Home tries hard to win on all these fronts as well as being part of the local community, with strong links to animal adoption centres for instance.
What's the best decision you've ever made?
That is a big question! Let’s limit it to recent work and career. In the past few years it has to be the decision to look for Chairmen and directorship roles. I really enjoy the roles and the variety and learning they bring.
And the worst?
Further back - launching a venture while in the travel sector that forgot that, however good the service, there is only a certain premium customers will pay and you ignore costs at your peril.
What's the most valuable marketing lesson you picked up in your career?
Consumer service businesses are transparent and if your marketing does not reflect what the people in the business actually deliver or realistically can aspire to, you will be found out.
How do you ensure your employees reflect your brand?
How do you ensure your brand reflects your people is the staring point for a retail offer. If there is a major dissonance between them you can either fall back on ‘change the people or change the people’ or rethink your brand positioning. I have been fortunate that in both Pets at Home and John Lewis those serving customers are generally fantastic people who have a passion for what they do. It allows you to build the brand confidently around them and what they stand for.
What's the biggest challenge facing retailers over the next year?
Footfall. There will still be good opportunities to grow business and profit but I expect overall footfall to be weak. Maintaining or growing footfall will be the biggest challenge.
Most retailers are demoralising places without footfall – and normally not very profitable.
How do you ensure Pets at Home remains relevant to its customer?
The team there are great at listening to customers and shop floor colleagues, caring about pets and being out in the shops a lot. It is not a bad place to start. You can then top it up with Research.
What's the most eccentric item you sell?
I will bypass quickly the litter kwitter that enables you to train cats to use a human loo instead of a litter tray and settle on the buggy / push chair, which people use for small dogs and rabbits!