Burberry ousts its CEO and could you survive 378 days of team bonding?

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The UK’s new chancellor Rachel Reeves said on taking office that she is seeking a “mandate for growth” and looking for ideas that can help new UK businesses to grow and flourish. At Business Leader, we want to inspire and support high-growth companies as well, and one way we do that is through our My CEO Secret video series.

This week we feature Matt Grech-Smith, co-founder of the company behind the Swingers urban crazy golf chain. The company started out in London but has expanded internationally, opening courses in New York and Washington.

It was a ‘meanwhile’ space that provided Grech-Smith with his business breakthrough. Such sites are usually available on a short-term lease at a discounted rate, perhaps because there is a vacancy that’s hard to fill or the property will soon be redeveloped or demolished.

Grech-Smith and his business partner Jeremy Simmonds had an idea they called “competitive socialising”. They wanted to take the idea of mini golf, more often associated with trips to the seaside, and transplant it to an indoor, inner-city venue. They also wanted to serve people cocktails and street food while they putted their way around the neon-lit course – all highly Instagrammable and perfect for office nights out.

A pop-up, 7,000-foot warehouse in east London gave them the chance to test out the idea for five months in 2014. Even though the property was far from ideal, they were able to prove that the concept was popular with customers. In fact, the bookings website crashed due to the demand and the test site made a six-figure profit.

They also got invaluable early feedback from paying customers. The whole experience gave them a proof of concept, which meant they could attract private investment and ensure their next ‘proper’ venue, two years later, was a success.

Although Swingers went through tough times during Covid, it managed to survive and is now in a strong place as experiential retail experiences gain traction on the high street. In 2023, the company’s turnover hit $50m (£39m) and it expects that number to reach $70m globally this year. It also has plans for 12 more sites by 2025, including in Las Vegas and Dubai.

Digital, online products are easier to test in a live environment without committing too much money up front. It’s harder to do this with bricks-and-mortar retail concepts, but pop-ups present one such opportunity.

“We acted as a kind of a test bed with our pop-up,” says Grech-Smith. “For other people getting into the space, they saw the reception we received, so there was a rush to market after us with other mini-golf concepts, or any other activity with a bar.”

The idea of competitive socialising just got very competitive.

You can watch the full video here or on YouTube here.

Business Question

Guess the company

• It originates from a company founded as a bike-building business in 1884
• It employs more than 28,000 people and has over 830 stores
• It’s in the FTSE250
• It’s known for Team Knowhow

The answer can be found at the bottom of the page.

Business in Brief

Everything you need to know

1. Burberry has brought in a new CEO as it seeks to arrest a sales slump that has forced the company to issue a profit warning. Former Coach and Michael Kors boss Joshua Schulman is to take over from Joanthan Akeroyd as chief executive. The move comes as Burberry’s retail revenues fell by 21 per cent in the three months to 29 June amid a luxury market that its chairman Gerry Murphy says is “proving more challenging than expected”. Its shares have fallen by 17 per cent on the news. You can read more here.

2. Recruiter Robert Walters has warned that the jobs market is taking “longer than expected” to recover after the pandemic as it reports a decline in second-quarter profits. The company says June was the worst month of the year so far for fee incomes, which dropped 18 per cent as new job flow weakened. The results are the latest sign of a slowdown in the jobs market after Page Group issued a profit warning and Hays cut its earnings outlook. You can read more here.

3. Tesco is targeting an extra £1bn in sales from its premium ‘Finest’ range as it looks to take a bigger share of the market from rivals Waitrose and Marks & Spencer. In an interview with the Financial Times, CEO Ken Murphy says the supermarket is responding to customer needs as they increasingly shun restaurants due to high costs and cook at home. “While it is a trade up from a core, own-brand product, it is a massive saving versus eating out because eating out has become way more expensive relative to food,” says Murphy. You can read more here.

4. The businessmen Elon Musk and Bill Ackman have endorsed Donald Trump for the US presidency after his attempted assassination at a rally in Pennsylvania over the weekend. Both men posted their “full endorsements” of Trump on X, which is owned by Musk. Ackman, who is the founder of Pershing Square Capital Management, wrote: “I assure you that I have made this decision carefully, rationally, and by relying on as much empirical data as possible.” You can read more here.

5. Competition between mortgage lenders is intensifying as the banks gear up for an expected cut in interest rates by the Bank of England. A number of lenders have reduced the rates on new fixed-rate mortgages, including Barclays, Nationwide and Virgin. Many analysts are expecting the Bank of England to cut interest rates from their 16-year high of 5.25 per cent at the bank’s next meeting on 1 August, although this is not certain. You can read more here.

Business Quotes

Inspiration from leaders

“If your actions inspire others to dream more, learn more, do more and become more, you are a leader.”

– John Quincy Adams

Business Thinker

Ideas on the future of business and leadership

1. ? Would you survive 378 days of team bonding? Nasa takes the test ?

2. ?️‍?️ Jamie Dimon says 2 letters matter more than anything else for having a great career: EQ ?️‍?️

3. ?️ The Metaverse Was Supposed to Be Your New Office. You’re Still on Zoom ?️

And finally…

For England fans, it may feel too soon for an analysis of how Spain won Euro 2024. A heartbreaking late goal from Spain after a glorious equaliser from Cole Palmer somehow put England back on equal terms means England’s long wait for a tournament win continues.

But The Athletic has pulled together a fascinating piece on the culture of the Spanish team and its leadership. It’s hard to remember that they weren’t much fancied at the start of the competition, with all eyes on Germany, France and England as possible winners. Despite that, the team believed, motivated by a brilliant captain in Alvaro Morata and coach Luis de la Fuente. It includes lessons on having faith in your team, listening to everyone’s views and the importance of a Spotify playlist. 

If you can, it’s well worth a read. And if not, The Athletic’s deep dive into England’s Euro 2024 competition is here for you. 

The answer to today’s Business Question is Edinburgh.