From September, the UK’s largest independent toy retailer The Entertainer’s 1,900 employees will officially become co-owners of the family-run firm. This means they will receive tax-free bonuses based on revenue, as well as gaining influence over business decisions.
But CEO Andrew Murphy revealed in his comments on the news that the move to an Employee Ownership Trust (EOT) goes far beyond just financial gains for employees and will benefit workforce wellbeing by embedding a sense of belonging.
He said:
“I know that our new structure will bring us even closer as a business and will provide our hard-working employees with a sense of opportunity, accountability and belonging as we work to create more memories, inspire wonder and deliver outstanding customer service. I am hugely excited for what lies ahead.”
Force for good
Murphy joined the retailer two years ago from a senior role at employee-owned John Lewis Partnership, the UK’s most famously celebrated employee owned business.
He described The Entertainer as a “true British success story” that had “consistently championed the belief that business can be a force for good across the communities they serve”.
Employee voices to shape strategy
The Entertainer’s move means 100% of the business will be held in trust on behalf of staff. Employees will elect representatives to a Colleague Advisory Board—ensuring their voices shape strategy, policy and culture.
The retailer’s Christian-inspired values, too, such as closing on Sundays and significant charitable giving, will remain intact.
Research shows that employee-owned businesses consistently outperform on employee wellbeing and are more likely to offer benefits like private healthcare, mental health support and flexible working hours.
In one independent UK study, employee-owners reported greater autonomy, stronger job security, and were more likely to recommend their workplace to others (ref Ownership at Work (2023), NCEO, University of Stirling).
‘What we say matters’
A member of staff, interviewed as part of the BBC’s news coverage, demonstrated the link between a sense of belonging and being listened to, with high engagement when she commented:
“Knowing officially what we say matters and we can contribute to the future success of the business is really exciting.”
On the back of the news, commentators like Christian Wilson, Partner at law firm Spencer West LLP, predicted that the EOT model would “gain momentum” in UK retail.
He said:
“The Entertainer’s case is particularly compelling because it couples financial participation with strong values. Sceptics sometimes ask whether employee ownership dilutes entrepreneurial drive. My experience is the opposite: when employees are beneficiaries, not just wage-earners, engagement rises, turnover drops, and the business becomes more resilient to external shocks.”
The Entertainer posted pre-tax profits of £6.7m when reporting on its most recent set of annual accounts, for the year to the end of January 2024.
The Entertainer’s People Development Manager, has recently joined our Make A Difference Leaders’ Club. To find out more, and join our Leaders’ Club yourself, see here.
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