The Discovery Store

The Discovery Store was a British specialty retail chain focused on novelty merchandise, gadgets, toys and lighting products. The business was formed in 1991 in Scarborough, North Yorkshire, by Barry and Geraldine Ricketts and Alan Mitchell as part of the family-owned Raysun Group Plc. During the 1990s and early 2000s it expanded beyond its regional origins, developing a network of high-street shops across the United Kingdom and an online presence. The chain entered administration in 2001, when 31 outlets were placed under the administration process by KPMG. Later that year, The Caudwell Group, the business group best known at the time for owning Phones 4u, acquired the retailer out of administration for approximately £30 million. John Caudwell became the most visible leader associated with the chain and promoted an ambitious plan to make it the leading British destination for boys’ toys and gadgets. The proposed strategy included prominent flagship stores in major cities, although those larger-format plans did not materialize. Under Caudwell Group ownership, the estate increased by 21 stores, reaching 52 outlets, while the company also strengthened its online operations. The business reportedly returned to profit by the end of 2001, but its financial performance deteriorated thereafter. It recorded a loss of £3 million by the end of 2002 and a loss of £38 million by June 2004, according to the cited account of the company’s history. In 2004, management sought to reposition the retailer around the expanding consumer-gadgets market. Caudwell criticized the previous management approach and described a goal of making the chain a destination for newly released and unusual gadgets. Three concept stores were opened under the name Must Have It, stylized as “must have IT,” and the format shifted the emphasis away from toys toward gadgets and technology-oriented novelty products. The entire estate had been converted to the new format by August 2004. The Must Have It experiment was short-lived. The chain stopped trading on the high street and online in March 2005 after a difficult Christmas trading period and increased competition from department stores that had entered the gadget category. The collapse came during a broader contraction in the British gadget-retail sector; rival retailer The Gadget Shop also ceased trading soon afterward. In 2009, the Discovery Store trademark was purchased from The Caudwell Group by Barry and Geraldine Ricketts, who attempted to revive the business. The revived operation initially traded online and later began reopening high-street locations. It entered administration again in 2012, after which operations continued online for a period. The business ultimately disappeared by 2016. The brand is therefore principally remembered for its early novelty-retail format, its association with John Caudwell and the Caudwell Group, and the unsuccessful Must Have It repositioning.

The Discovery Store originated in Scarborough, North Yorkshire, in 1991. Barry and Geraldine Ricketts and Alan Mitchell established the business within the family-owned Raysun Group Plc. Its retail concept centered on products intended to be entertaining, unusual or exploratory, including novelty gadgets, toys and lighting items. The chain gradually expanded across the United Kingdom during the 1990s and was operating 31 outlets by 2001. That year marked the first major crisis in the company’s history. The Raysun Group placed The Discovery Store outlets into administration, with KPMG involved in the process. The business was subsequently acquired out of administration by The Caudwell Group, a group associated with Phones 4u, for approximately £30 million. John Caudwell became closely identified with the new ownership and articulated an ambition to make the retailer the leading British destination for boys’ toys and gadgets. He also discussed the possibility of large flagship stores in major cities, but those plans were not realized. The Caudwell Group expanded the chain by 21 outlets, bringing the reported total to 52 stores, and increased its online presence. The retailer was profitable by the end of 2001, but the growth strategy failed to produce sustained results. The company reportedly lost £3 million by the end of 2002 and £38 million by June 2004. In 2004, Caudwell argued that previous managers had not delivered the intended vision and sought to sharpen the retailer’s identity around current and unusual gadgets. The repositioning was tested through three concept stores branded Must Have It, with the styling “must have IT.” The concept deemphasized the original toy range and focused predominantly on gadgets. The entire estate was converted to the new format by August 2004. The change did not reverse the company’s fortunes. Must Have It stopped trading both in physical shops and online in March 2005. The cited reasons included difficult Christmas trading and increased competition from department stores that had expanded into the gadget category. The Gadget Shop, a comparable British retailer, failed soon afterward, illustrating the difficult market environment, although the two businesses remained separate. The Discovery Store name was later separated from the failed Caudwell operation. In 2009, Barry and Geraldine Ricketts bought the trademark from The Caudwell Group and attempted to revive the brand. The new operation began online and gradually reopened high-street locations. This second phase was much smaller and did not restore the former national chain. The company entered administration again in 2012, after which it continued online for a time. Its operations ultimately ended by 2016. The brand’s legacy is tied to two distinct retail phases: the original novelty and toy chain created within the Raysun Group, and the gadget-focused Must Have It experiment under the Caudwell Group. John Caudwell later cited the gadget-store venture as one of his major business failures, saying that he had persisted with the national format for too long. The Discovery Store’s history illustrates the difficulty of sustaining a specialized high-street gadget proposition when department stores and other retailers broadened their product ranges and seasonal trading became more challenging.

• 2016

  The brand’s operations end

  [1]The Discovery Storeen.wikipedia.org

  The revived operation ultimately ceases trading.

• 2012

  The revived business enters administration

  [1]The Discovery Storeen.wikipedia.org

  The second incarnation enters administration and continues online for a limited period.

• 2009

  The trademark is acquired by Barry and Geraldine Ricketts

  [1]The Discovery Storeen.wikipedia.org

  The original founders reacquire the Discovery Store trademark and begin a smaller revival.

• 2005

  Must Have It stops trading

  [1]The Discovery Storeen.wikipedia.org

  The high-street and online operation closes after difficult Christmas trading and increased competition.

• 2004

  Must Have It concept stores launch

  [1]The Discovery Storeen.wikipedia.org

  Three stores open under the Must Have It identity, shifting the proposition toward gadgets and away from toys.

• 2004

  All stores adopt the Must Have It format

  [1]The Discovery Storeen.wikipedia.org

  The chain completes the conversion of its stores to the gadget-led format by August.

• 2002

  The chain expands to 52 outlets

  [1]The Discovery Storeen.wikipedia.org

  The business adds 21 stores after its acquisition and develops its online presence.

• 2001

  The original chain enters administration

  [1]The Discovery Storeen.wikipedia.org

  The Raysun Group places the chain’s 31 outlets into administration with KPMG.

• 2001

  The Caudwell Group acquires the business

  [1]The Discovery Storeen.wikipedia.org

  The Caudwell Group purchases The Discovery Store out of administration and begins an expansion and repositioning effort.

• 1991

  The Discovery Store is founded

  [1]The Discovery Storeen.wikipedia.org

  Barry and Geraldine Ricketts and Alan Mitchell establish the business in Scarborough as part of the Raysun Group Plc.

A discovery-led specialty retailer offering unusual, entertaining and gift-oriented products, initially spanning toys, gadgets and lighting, and later repositioned toward technology gadgets.

• Gadgets and gift products · 1991

  Novelty gadgets

  Novelty gadgets were central to The Discovery Store’s identity. The category covered unusual, entertaining and impulse-oriented products designed to attract shoppers looking for distinctive gifts or conversation pieces. Under The Caudwell Group, gadgets became increasingly important and eventually formed the main focus of the Must Have It rebrand.

• Toys and games · 1991

  Toys

  Toys formed part of the original product mix and were particularly emphasized in John Caudwell’s stated ambition to make the chain a leading destination for boys’ toys and gadgets. The toy emphasis was reduced when the estate was converted to the Must Have It gadget format in 2004.

• Lighting and home novelty · 1991

  Lighting products

  Lighting products were among the novelty and lifestyle goods sold through the original Discovery Store concept. They complemented the chain’s broader selection of unusual merchandise and giftable products rather than representing a standalone specialist lighting business.

• Gadget retail format · 2004

  Must Have It

  Must Have It, styled “must have IT,” was a format and trading identity introduced in 2004. It repositioned the chain around predominantly gadget products and was applied across the store estate by August of that year. The format traded for less than a year before the high-street and online operations stopped in March 2005.

• 2009

  Revival under the original foundersStrategy

  Background

  After the Caudwell-era business had stopped trading, Barry and Geraldine Ricketts reacquired the Discovery Store trademark.

  Action taken

  The founders restarted the business online and gradually introduced new high-street locations.

  Aftermath

  The revived operation entered administration in 2012, continued online for a period and ultimately ended by 2016.

  Source

• 2004

  Repositioning as Must Have ItStrategy

  Background

  The Caudwell Group considered the existing management approach unsuccessful and wanted the chain to become a destination for the latest gadgets rather than a broad novelty and toy retailer.

  Action taken

  The company opened three Must Have It concept stores, changed the emphasis toward gadgets and converted the wider estate to the new format by August 2004.

  Aftermath

  The repositioning failed to establish a sustainable business. Must Have It stopped trading in March 2005 after difficult Christmas trading and increased competition from department stores.

  • The Gadget Shop — The comparable gadget retailer also ceased trading in April 2005 amid the difficult market conditions.

  Source

1. 1The Discovery Storeen.wikipedia.org