RTS 2025: Theo Paphitis talks Ryman’s blended approach, his love of technology, and Shein 'cop out'

“I love technology. I’m an early adopter,” said the eponymous Owner and Chairman of the Theo Paphitis Retail Group, which owns the Ryman stationer, Robert Dyas and Boux Avenue brands, at Retail Technology Show 2025 in London this week, as he shared his trenchant views on the past UK government and future of the High Street, which is likely to rely on a blended approach where tech supports the in-store offering.    

As an aside Paphitis, who is well known for the Dragon’s Den TV programme and for his Small Business Sunday (#SBS) business network that supports over 4,000 SMEs, also advised attendees at RTS 2025 to play with artificial intelligence tools in order to be an early adopter themselves of this important technology. “You ignore AI at your peril,” he warned.

More immediately, Paphitis discussed how his Ryman stationary estate of stores is using technology to drive customers back in-store after a tough time during the Covid-19 pandemic, and indeed since when more and more of its customers now work from home. They no longer regularly travel into UK city centres, where his physical Ryman stores are typically located. “We went from a £10 million profit to minus -£4 million, but returned to profit last year,” he said.

How has Ryman recovered? There are two key planks in an over-arching blended approach that it has adopted, which were highlighted by Paphitis at RTS 2025.

1.     Ryman app: this was launched “to drive people back into the store” post-pandemic, explained Paphitis, by engaging with them online and getting them to digitally order personalised greeting cards or use a fast print pick-up service [with physical collection].

“Once they cross the threshold, we then convert them [into buying extra products]. 95% of what we sell on the app is Click & Collect, which is far more profitable for us [than delivery]. We are blending [our channels] correctly and it is working.”     

2.     Loyalty scheme: this backs up Ryman’s app and its over-arching blended omnichannel approach, providing useful data to feed its other efforts. “It’s not just a discount scheme,” said Paphitis, while arguing that too many people use the methodology of jacking the price up artificially to offer a false discount. “That is an easy way for trading people to get better margin. But the cost is brand deterioration.”       

The UK’s struggling High Street

Paphitis also shared some strong views at RTS 2025 about the previous Conservative government in the UK, which were in power for 14 years and allowed “paralysis” until they were replaced by Labour and PM Keir Starmer last year.

He described the ten prior ministers he met in charge of the High Street via their various planning and community responsibilities as “muppets” that didn’t do anything to reduce business rates on physical retailers in the UK. Rents from landlords were too high as well.

“We must have been in the only government in the world that ignored online retail and let them get away with not paying their fair share of tax,” he said. “The good news is that the present UK government acknowledged the problem [of dying High Street stores] in their manifesto and a governmental whitepaper is due in the autumn.”

“Of course, the new government have made a few mis-steps themselves in their nine months in charge, as they learn the ropes, and they’ll have to stop blaming their predecessors soon once they hit the one year in charge mark.”    

Global scene and tech giants  

The international scene wasn’t spared Paphitis’ genial but hard truth telling at RTS 2025 either during his keynote session in the conference stream.

The way that global corporations like Google, Amazon and others pursue ‘tax efficient’ schemes was highlighted. Google’s propensity to sell you a customer but then sell them to a rival, before selling them back to you again was also castigated, with Paphitis saying: “The previous cost of acquisition argument turned out to be cobblers” as consumers “were promiscuous”.

The industry “did this to ourselves” [created its present problems] as well by offering over generous promotions, free delivery and making other such mistakes that ate into margins. As times turn tougher that cannot go on anymore to such an extent.   

Google and Amazon – who Paphitis attested “at least keep us honest” vis-à-vis pricing – are, however, nothing compared to the likes of fast fashion players Temu and Shein. The fact that the latter didn’t take any questions during another RTS 2025 conference session particularly attracted his ire, prompting a “cop out” comment.      

Tips for success

Away from the politics, he still remains a fan of technology and of progress. Paphitis was keen to share his tips for success and his long experience of the retail industry. He advised RTS 2025 attendees to “always be full of enthusiasm and positivity” and to “bloody love their job”, as he does, while “accepting failures as a part of a learning process” for entrepreneurial spirits.  

“Remember you cannot be a ‘me too’ either in the present retail environment,” concluded Paphitis. “You need a unique selling point (USP) in order to exist [and to thrive].”