Doing a Ratner
From Wikipedia, the free encyclopedia
Doing a Ratner is a British business phrase referring to a chief executive or a senior person of a company who criticises the company's products or disparages the customers, frequently with disastrous results for both the person and the company.
Contents |
[edit] The Speech
Although widely regarded as "tacky", the Ratner shops and their wares were nevertheless extremely popular with the public, until Gerald Ratner made a speech at the Institute of Directors in April 1991. During the speech, he said:
| “ | We also do cut-glass sherry decanters complete with six glasses on a silver-plated tray that your butler can serve you drinks on, all for £4.95. People say, "How can you sell this for such a low price?" I say, because it's total crap. | ” |
He compounded this by going on to remark that some of the earrings were "cheaper than an M&S prawn sandwich but probably wouldn't last as long"
The speech was instantly seized upon by the media, an estimated £500m was wiped from the value of the company, he was given the boot 18 months later, and in 1994 the Ratner name was expunged from the company, renamed Signet Group.
Even today, Ratner's gaffe is still famous in the British Retail industry as an example on the value of branding and image over quality. Such gaffes are now sometimes called Doing a Ratner, and Ratner himself has acquired the soubriquet "The Sultan of Bling". Ratner has said in his defence that it was a private function which he did not expect to be reported, and his remarks were not made seriously.
[edit] Other executives who have "done a Ratner"
- In July 2001, David Shepherd, then brand director of the clothing chain Topman said in a trade journal "Menswear", that his customers were hooligans and "Very few of our customers have to wear suits to work. They'll be for his first interview or first court case."
- In March 2002, Woolworths' Gerald Corbett said, regarding Woolworths' progress at his stores, that "Some city centre stores are vast open deserts with nobody there."[1]
- In March 2003, EMI's chief executive, Alain Levy said the company had cut the artist roster in Finland from 49 artists, as he did not think there were that many people in the country "who could sing". The joke went down like a lead balloon over in Helsinki, with the managing director of EMI's local subsidiary pointing out that the Finnish firm commanded a 20% share of the local market thanks to Finns who can sing[2]
- In October 2003, Matt Barrett, the chief executive of Barclays (owner of Barclaycard, one of Britain's most popular credit cards) said on a parliamentary Treasury committee on credit cards, "I do not borrow on credit cards. I have four young children. I give them advice not to pile up debts on their credit cards."[3][4] According to some people, this statement might sound more like an admission of truth on the subject of credit cards.
- Anders Dahlvig, the chief executive of furniture store IKEA, said his stores were "appalling" on weekends.[citation needed]
- Freddy Shepherd and Douglas Hall, bosses of football club Newcastle United, said Geordie women were "dogs" and mocked fans for purchasing £50 replica football strips.
- In the United States, a Forest City Enterprises executive, developer Bruce Ratner, characterized his own Atlantic Center mall as "not something that we’re terribly proud of".[5] Additionally, in May, 2004, he memorably insulted customers who live near the same mall to a NY Times reporter: "here you're in an urban area, you're next to projects, you've got tough kids,''[6].
- In March 2007, Nick Robertson, CEO of ASOS.com, commented in New Media Age Magazine about the re-introduction of an affiliate marketing program to help grow the business further. Affiliates are widely believed to have been responsible for ASOS's rapid growth. Robertson's description of them as "grubby little people in grubby studios growing income at our expense" has resulted in many affiliates shunning ASOS.com.
[edit] References
- ^ http://thescotsman.scotsman.com/business.cfm?id=271122002
- ^ http://news.bbc.co.uk/1/hi/business/3199822.stm
- ^ http://news.bbc.co.uk/1/hi/business/3199822.stm
- ^ http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2003/10/17/cncred17.xml
- ^ http://www.brooklynpapers.com/html/issues/_vol27/27_12/27_12nets3.html
- ^ http://select.nytimes.com/gst/abstract.html?res=F20617FB3E5A0C758EDDAC0894DC404482
[edit] External links
- "Suffering from foot-in-mouth", an article in The Observer, October 19, 2003, describing several instances of company executives "doing a Ratner."
- Interview with Ratner, The Guardian, April 28, 2005
