Wilko owner pushed discounter to the edge by abandoning proven low price approach

According to a former boss of Wilko, the discount retailer’s downfall was due to the third-generation owner, Lisa Wilkinson, abandoning its tried-and-tested low price strategy.

Lisa Wilkinson, the granddaughter of Wilko’s founder, James Kempsey Wilkinson, served as the company’s chair until earlier this year when it fell into administration, putting 12,000 jobs at risk.

Administrator PwC has been unable to secure a deal for all 400 Wilko stores, likely resulting in the company being broken up and sold piecemeal to competitors such as B&M and Poundland.

Gordon Brown, who served as the managing director from 1992 to 2007, criticized the management team under Lisa Wilkinson for deviating from the successful low price, low-cost model.

He stated, “They paid consultants who helped them bring about a new format for stores, but they were less aggressive on pricing and their approach on the shop floor.”

Furthermore, the company has faced criticism for paying out millions of pounds in dividends to the controlling Wilkinson family, even during years when Wilko incurred losses.

The pension fund also has a shortfall of £16 million, which puts the retirement payouts of hundreds of workers at risk.

Nadine Houghton, of the GMB union representing 3,500 Wilko staff, called on Lisa Wilkinson to contribute from her personal wealth to support workers’ pension funds and expressed disappointment that Wilkinson had not engaged with the employees.

Wilkinson’s husband, Chris Phillips, declined to comment on the matter when approached at their £3 million home in Cambridge.

Lisa Wilkinson acquired a majority stake in Wilko in 2014 from her cousin Karin Swann, another granddaughter of the founder. The family-owned 99.7% of Wilko until its collapse, with the management company AHWL stating that family members had not received dividends since 2017.