BrightHouse shines through snow to notch up sales boost

The private equity-owned company, which has 22 stores and 400 staff in Yorkshire, saw revenues rise to 57.4m for the 13 weeks to December 31.

Chief executive Leo McKee said the Arctic conditions had not been a "significant inhibitor" of sales.

He added: "Even with some appalling weather in November and December, customers still made shopping trips. Overall, our trading during this season has been buoyant."

Some retailers, such as HMV, Mothercare and Theo Fennell, have blamed the snow for poor trading over Christmas, although others, including John Lewis, Waitrose and The White Company, performed well over the period.

BrightHouse markets aspirational goods such as home electronics, domestic appliances and household furniture to low-income families on a rent-to-own basis with weekly payments.

Mr McKee said BrightHouse managed to get 100,000 customer orders delivered in time for December 25. He told the Yorkshire Post: "Our service division did a really great job in the sense that when people are buying TVs for Christmas, they have to get them on time.

"That was a critical thing. People had to dig their way through snow. They worked Sundays. We had extra vehicles. We hired additional staff. The service division significantly overspent its budget."

He added: "The delivery service does not come in, dump it and leg it. They come in, set it up and make sure it is working and that you know it is working.

"There was an old chap who took his door off before a delivery, breaking the hinges.

"Our bloke went to B&Q, bought him some replacement hinges and put the door back in. He was a very happy customer. That's indicative of our customer service commitment."

Local managers are "empowered" and given autonomy in decision making, said Mr McKee, which led to the overspending in delivery budget. He dismissed any question that this would damage the overall profitability of the business.

Mr McKee said: "We will achieve our profit targets. If you look at the financial performance of BrightHouse over the past five years, profit growth has been about 20 per cent.

"The question is how do you do that? You empower the local management of the business that the customer is always right. At the end of the day, 40 per cent of my new customers are recommended by existing customers. If I give outstanding service to you, you are much are likely to say to your brother or mother that you should go into BrightHouse."

The company, which has faced criticism over its 29.9 per cent annual rate of interest, also benefited from its demographic profile. Mr McKee said most of his customers live within three miles of a store. And most do not own cars so their shopping trips are less likely to have been affected by the chaos on the roads.

The company reported strong demand nationally for games consoles, mobile phones, laptops and flat screen TVs, but furniture was the stand out category in Yorkshire.

Lebus Upholstery, based in Scunthorpe, is a big supplier to BrightHouse. Mr McKee said: "You have got this thing about UK manufacturing having been murdered, but they have grown over the past four years. They have about 300 people that make sofas to very high standards."

Year-on-year furniture sales in Yorkshire's BrightHouse stores are up by around 18 per cent, he said, which is ahead of the rest of the chain. Mr McKee suggested that the strong performance could arise from Lebus staff visiting more Yorkshire stores.

BrightHouse has 223 stores across the UK and believes that this number can grow to 650.

It is currently opening around 30 stores a year and wants to open at locations around Yorkshire including Selby, Goole, Brighouse, Shipley, Rotherham, Whitby, Maltby, Pudsey, Morley, Knaresborough, Baildon, Wombwell and York.

The average store size is 2,500 sq ft, with the company typically spending 500,000 on fit-out. Each new store will create around a dozen jobs.

Many town centres have been decimated by the recession, which offers good opportunities for potential occupiers, but it remains a tough environment for trading, said Mr McKee. He told the Yorkshire Post: "There are green shoots, but it is still difficult for retailers just now."

Understanding is key to success

At 64, Leo McKee is a veteran of the retail industry.

The Glaswegian regularly tours his stores to meet staff and customers. According to the former chief executive of Woolworths, the secret of successful retail is "understanding your customer, understanding your staff, spending time with your staff and keeping your promises."

Sales last year were 197m, up from 170m the previous year. The business, once owned by City financier Guy Hands, is now 87 per cent owned by Vision Capital. Management owns the rest.