Ask the Boss: The future is bright for Leo McKee of BrightHouse

BRIGHTHOUSE may be at the opposite end of the retail spectrum from John Lewis, yet it is the service levels offered by the latter to which the boss of the “rent-to-own” company aspires.

CUSTOMER SERVICE BrightHouse boss Leo McKee believes that is the key to its ongoing success CUSTOMER SERVICE: BrightHouse boss Leo McKee believes that is the key to its ongoing success [PH]

Most customers do not have the cash or savings to buy outright and cannot get a credit card or loan from a mainstream bank.

They pay for furniture and electrical goods in weekly instalments and at the end of three years own the product but if anything goes wrong in the meantime the ­company will repair or replace it.

Chief executive Leo McKee says customer loyalty is very strong. He puts it down to affordability and the service offered by its 3,046 staff across its 286 shops, distribution and repair centres.

He says: “We compare ourselves against the best in Britain and the number one to my knowledge is John Lewis and Waitrose. We invest a massive amount of time and money on our service levels.”

As well as investing in training it monitors service internally, and through mystery shoppers and external researchers.

Because it charges interest rates with an APR of up to 65 per cent, BrightHouse has become embroiled in the controversy over high credit costs for lower income families and the debate about ­living on the never-never.

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But Glasgow-born McKee, who started his career with the Scottish Co-op, points out the other option is the alternative loans market where APR rates can be in triple figures.

He says: “Our customers don’t have a car, don’t go on foreign holidays, don’t eat in fancy restaurants. The status indicators in their lives are the sofa, TV and smartphone. They are not being profligate. This is a deeply mis­understood market.

“The basic thing is that the vast majority of them are hard-working, sensible people who are very careful about managing their income. They are pretty savvy.”

Ensuring they can keep up payments and offering help such as payment holidays if they struggle is a key part of the service package. McKee welcomes next month’s change that sees the Financial Conduct Authority take over consumer credit.

Among his mantras are “sustained excellence” in customer service, being “employer of choice” and “pro-active corporate citizenship” such as its links to NSPCC, all of which help achieve one of his other goals of “superior financial returns”.

Since he joined eight years ago the company has been turned around and in its past full year its sales and profits rose by about 11 per cent to £297million and £49.4million respectively. Its ­biggest shareholder is private equity firm Vision Capital with an 87 per cent stake, while 19 mana­gers own the remainder.

Yet having raised £220million on the bond markets last year it is not planning on joining the rush to float on the stock market.

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Why did you go into business?
At 10 I was a milk boy working from 4.30am before school. I always wanted to work in business.

After university I joined the Scottish Co-op which invested hugely in training.

Who has inspired you in your career?
Sir Geoff Mulcahy, who led Kingfisher when I was Woolworths’ managing director, was inspirational.

He was obsessive about customer service. Kingfisher was a school of excellence.

What was your best moment?
When I joined BrightHouse we had 200 managers at our annual conference who had
been through years of despair.

I told them we had a vision of a business we could all be proud of. They applauded for 10 minutes and stood on chairs cheering. It was crazy.

And your worst?
At Levi Strauss in the 1980s when there were headlines about the bottom falling out of the jeans market.

We had been used to great success and had to do things differently.

How do you relax?
I go to the gym three days a week and am a big rugby fan, I support London Wasps.

I have three children and six grandchildren.

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