Theo Paphitis becomes Robert Dyas’ interim CEO to revive struggling home goods chain

Retailer Theo Paphitis has stepped in as interim chief executive of Robert Dyas as a high street battle cuts sales and changing consumer habits.

Paphitis, who owns the business through Theo Paphitis Retail Group, said he has taken a direct role in the company’s leadership in recent months in an effort to stabilize operations and reshape the brand’s strategy in what he described as a “testing period” for the retailer.

The 66-year-old businessman, best known for appearing on BBC show Dragons’ Den, said he stepped up his involvement last summer to “steady the ship and refocus the strategic direction” as the company faced tough trading conditions on the UK high street.

Robert Dyas, which operates 93 stores across the UK, has struggled with falling footfall and soft consumer demand. Like-for-like sales fell 5 percent in the year to the end of March, with the company blaming a glut of shoppers and unusually cool weather dampening demand for some of its core products.

The retailer also experienced a price drop following an increase in sales last year during the height of the cost of living crisis. At the time, customers flocked to buy energy-saving products such as air fryers, dehumidifiers and related accessories, increasing demand across the sector. However, as spending patterns normalized, the sales momentum faded.

In response, the company said it has begun implementing a series of strategic changes aimed at revitalizing the product. This includes revising its product range, sharpening its focus on traditional home and garden categories, and expanding in-store services designed to drive customer engagement.

Although Robert Dyas faced a difficult trading period, other businesses within the group reported strong performance. The Ryman stationery chain delivered improved results, with earnings before interest, tax, depreciation and amortization up 20.5 per cent to £1.94 million in the latest financial year. The company expects that figure to grow to around £3 million this year.

Ryman’s recovery was driven by improved margins, the expansion of the brand’s arts and crafts division and the introduction of additional services in both physical stores and online platforms. The retailer is also experimenting with new store formats, including integrated stores with Robert Dyas, a partnership with the Post Office and the launch of a new “Ryman Design” concept.

Meanwhile, underwear brand Boux Avenue also delivered improved results, reporting a significant increase in profits. Profits improved by £6.4 million following a 6.9 per cent increase in sales and strong profit margins. The company expects EBITDA to reach at least £4 million in the current financial year after a strong Christmas and Valentine trading period which delivered double-digit growth.

Paphitis has built a reputation over several decades for turning around struggling retail businesses. He came to prominence after rescuing the Ryman book series from management in 1995. He later moved into the underwear sector by acquiring the UK division of La Senza in 1998, successfully reviving the business before selling his stake in 2006 for a reported £100 million.

He then founded Boux Avenue before moving into the homewares sector by acquiring Robert Dyas in 2012 for around £10 million. The purchase comes after the 140-year-old metal and home goods retailer was put up for sale by its creditors.

Reflecting on the challenges facing traditional retailers, Paphitis said value brands must remain flexible in order to remain relevant in an era where consumer behavior is rapidly evolving towards online shopping and digital markets.

“We are at a time when other heritage brands, such as WH Smith, have disappeared from the high street,” he said. “It’s a strong reminder to retailers that they need to keep evolving, 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 because of the abundance of options available online.

Despite the difficult trading environment, Paphitis said he believes Robert Dyas can thrive again with sharp product positioning, strong store experience and a renewed focus on its core home and garden divisions.

The appointment points to the approach of the businessman as he tries to steer the retailer through what he described as one of the most challenging times for high street businesses in recent years.