Tuesday, 21 May 2013

The brothers behind the success of Lakeland

lakeland rayner brothers
MAGIC NUMBER The Rayner brothers Sam, Julian and Martin looking out over their Lakeland store at Windermere JOE RILEY

OVER the last 50 years, Lakeland has become one of Cumbria’s and Britain’s biggest home-grown success stories – a far cry from its humble beginnings.

The Lakeland story starts in a garage owned by Alan Rayner, a man proudly described by his middle son Sam as a “true entrepreneur”.

“Dad’s mother and father emigrated to Australia and he moved to Windermere and was brought up by his uncle, Eric McGowan, who ran the Beech Hill Hotel,” Sam says.

“After he finished serving during the war, dad felled timber here then went overseas. When he came back he ended up in agriculture, working from home buying and selling chickens from farmers – that business was called Lakeland Poultry Packers.”

Alan’s ability to diversify led to him setting up a plastics company in the early 1960s, having recognised a gap in the market for polythene bags to be used to store food in the latest invention – freezers. Lakeland Plastics went on to become one of ICI’s largest distributor of plastic sheeting in the UK before Alan branched out once more into manufacturing animal tags.

“He had his fingers in a lot of pies, he also had a hotel at the time, he still had the farm... he was into all sorts of things,” Sam recalls with a smile.

The three Rayner brothers, who have rarely been interviewed all together, were introduced to the business at an early age.

“As soon as you were able to drive, you would be sent off to work,” Sam says. “When we were lads it was a case of, if you wanted pocket money you had to earn it.

“Every morning before I went to primary school I’d be down at the bakery,” Julian adds.

“Dad taught us you’ve got to stick up for yourself. He’d never give you anything on a plate, you had to work for it. Our father was a very independent person and he tried to instill that in us.”

Within 15 years, Alan had stepped back and sold Lakeland to his three sons.

“As the eldest, Martin wanted to buy the business from dad, so we worked out a way of buying it between us,” Sam says.

“We have worked exceptionally well together. We found we had the right mix of skills and abilities and that has been the success of the business over the last 35 or 40 years. But as three brothers outside of the business we aren’t that close.”

Moving Lakeland away from plastic freezer bags was the brothers’ first step.

“We were getting more involved in the home frozen food industry,” Julian, the youngest, explains.

“We could see that was the logical route to go down so we came out of manufacturing and focused on that.”

Almost 40 years later, Lakeland now describes itself as “the home of creative kitchenware”, selling thousands of unique, unusual and useful products, ranging from a children’s play area in the shape of an Aztec temple, to popular kitchen gadget the ‘poachet’ – a small sack made from teabag-like paper that stops egg white from going stringy when an egg is being poached.

Although the growth of Lakeland has been steady, it is also incredibly impressive.

When Alan Rayner left the business in 1976, Julian says, turnover was “a couple of hundred thousand”. In 2011 that figure stood at £150m with profits of more than £10m.

And in more recent years, the company has become a global brand. Lakeland’s portfolio of 57 stores now includes a franchise in the Middle East which boasts a customer demographic made up of 50 per cent Europeans.

“It shows the brand can travel,” Julian explains.

“This country is one of the top retailing nations in the world along with the US and Germany, and that expertise is right here in Cumbria.”

Lakeland maintains close relationships with the inventors behind its products.

Throughout the year, Martin attends some of the world’s biggest trade shows in Hong Kong, China, Chicago and Frankfurt. As part of Lakeland’s constant search for new products, he hires a couple of offices and invites inventors to ‘pitch’ to him in true Dragons’ Den-style.

“That’s one of the biggest differences with Lakeland,” Martin says.

“We don’t say ‘we’ll just have 100 suppliers’ and that’s it, we’ll allow anyone to supply us if they’ve got a great idea. You’re never too big to turn people away.

“That’s how we come up with between 50 and 100 new products a month and that’s why customers come to us.”

Alan Rayner died 12 years ago and, although he handed the business over to his sons in 1976, his presence is still felt at Lakeland. A fitting tribute in the form of a portrait hangs on the boardroom wall and serves as a reminder of the company’s history and its founder’s spirit.

“He was very proud of what the company had achieved,” says Julian.

“I remember when we moved here (to Lakeland’s current headquarters) 10 years ago, that was something he never expected – he never thought we’d get this land.”

The Rayners are candid about the time they looked at moving the business elsewhere during a protracted battle with council planning bosses.

“Securing this site was a bit of a coup,” Sam says.

“In the past people haven’t quite shared our confidence in our abilities to develop the business,” Martin adds.

“There was a time when we looked at moving. That was an extremely difficult two years for us.”

But Windermere, and the Lakes, will continue to be ‘home’ for Lakeland and the Rayners.

“We are here because of the people and history,” Martin reiterates during the interview – the Rayners’ first for a business-to-business publication.

“Our people are what makes the business and that’s what has kept us here.”

Although between them, Sam, Julian and Martin have seven grown-up children, the Rayner reign will end with the three brothers.

“None of our kids work for Lakeland,” Julian says. “We’ve encouraged them to go off and do their own thing. Our board is our future.”

But, he insists, “we’ll still be a family business”.

Aged 54 (Julian), 58 (Sam) and 61 (Martin), the Rayner brothers already have “succession plans” in place for when they retire.

“We recognise none of us are getting any younger,” Julian admits.

“We’ve got a fantastic board, with directors from companies like Vodafone and Marks and Spencer.”

Martin and Julian have already taken “a slight step back” but all three plan to stay in the Lakes once they retire.

“I can’t see us buying a football club,” Julian jokes.

“Seriously though, we’re born and bred here,” Martin says. “We’ve got a great affinity with Cumbria and a great quality of life – why would we want to live anywhere else?”

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