Ex-Tesco chief Sir Terry Leahy has said he will invest in Liverpool-based music and performing arts specialists LMA, whose choir rose to fame on ITV's The X Factor last year.
This week, in a rare interview, Liverpool-born Sir Terry has spoken exclusively to on a variety of issues - from why he chose LMA, to how he sees the future of the high street, to his views on the plans for Bramley Moore Dock - Everton FC's new stadium.
Blues fan Sir Terry thinks the dockland location for the new 52,000-seater stadium is “difficult but very exciting” - and that “everyone” in Liverpool wants to see it come off.
He also revealed his hopes that the nearby Ten Streets community will become “the next exciting part of the city”.
When asked about the new stadium, to which the club will move over the coming years from its current Goodison Park home, he said: “I look forward like every Everton fan to seeing the planning proposal with more detail.
“It’s a difficult location, but a very exciting one, and a very ambitious project which not only every Evertonian, but everyone in the city of Liverpool, hopes will come to fruition.
“It’s difficult because, obviously, one side of it is water. Also, it was a dock, so it’s got to be filled in and prepared and made ready for this different type of development. There’s lots of infrastructure work that goes around that. It’s great ambition on behalf of the club.”
The current plan is for Everton to make the move from L4 to L3 by 2023, and a series of extensive consultations have taken place before any preliminary designs are released.
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Born in Belle Vale, Sir Terry, who has acted an advisor for the club in the past, added: “The Baltic Triangle is obviously doing well, so Ten Streets - the area north of Bramley Moore Dock, can really be the next exciting part of the city.”
International expansion
Sir Terry has made the investment in performing arts specialists LMA with Bill Currie, founder of major firm William Currie Group, and together they hope to drive forward the firm’s “plans for international expansion”.
Sir Terry and Mr Currie have pledged their support to LMA and its students to help launch a new chapter of growth for the business, which includes opening a London campus and five international campuses.
They began talks with brothers and co-founders Richard and Simon Wallace in 2018, and have pledged their support to launch a new chapter of growth for the business, after making it through to the live shows of Simon Cowell’s talent show the X Factor.
The choir was mentored by Robbie Williams, who said he was impressed by their enthusiasm and vocal talents.
Now, Sir Terry and Bill will work closely with the brothers to help develop LMA and promote the brand globally.
Sir Terry said: “I’m absolutely thrilled to be part of LMA. The success is a true testament to Richard and Simon’s dedication, their team’s passion and, of course, our students’ talents. I’m looking forward to working closely with the team to help take LMA into its next chapter.”
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He said the investment was “partly” to do with the fact the firm is based in Liverpool, adding: “I’m interested to see how the economy is doing up there, and keen to make investments in it.
“A couple of other businesses were shown to us, but we had known about LMA for some time. While it’s not a tech investment, it’s in an interesting sector - education, which is seeing good growth. We like the founders and they are successful entrepreneurs and good educationalists.
“Liverpool has a great tradition in entertainment, with successful entertainers past and present, there’s a high demand. So it’s about tapping into that demand and equipping people with a skill, because they’ve already got the ambition and work rate.”
Sir Terry, previously a co-chancellor of the University of Manchester, added that he liked LMA’s high level of contact time with its students.
“It’s a disciplined environment - 28 hours a week contact time,” he said.
“That’s incredibly high. LMA insists on teaching kids a real skill. You will be taught to sing, play an instrument, how to use sound equipment, rather than reading about it or learning around the subject.
“As a result, the employment record is fantastically high in an industry where other institutions find it difficult to place their people.”
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Mr Currie’s investments include ASOS, The Hut Group and Metapack, and he said: “It’s clear to see that LMA has a bright future and is on track for a fantastic period of growth – as a city, Liverpool should be proud of the talent coming out of LMA and I’m confident that, with the right support and growth strategy, its students will have an unrivalled platform from which to launch their career.”
Based across two campuses at Hope Street and Duke Street, LMA offers BA Honours degree courses and BTEC courses in Acting, Digital Film and TV Production, Games Art and Animation, Music Performance and Industry and Musical Theatre.
Richard Wallace said: “We are absolutely thrilled that Sir Terry and Bill have joined us and become part of the LMA family.
“We have some major developments in the pipeline and their support will help drive these forward to allow us to inspire more future stars than ever before to achieve their dreams – from across Liverpool and beyond.
“We’re extremely excited that Sir Terry and Bill share our vision of how to grow LMA and to nurture the next generation of talented performers, musicians, film-makers, actors, and games designers.”
Tesco, B&M and more
Sir Terry stepped down as CEO from Hertfordshire-based Tesco in 2011 after running the group for 14 years as chief executive, achieving sales of £60bn and transforming the supermarket into a global giant both in the 海角视频 and abroad.
Years after leaving, in 2015, he told the BBC’s Panorama programme there had been a “failure” of leadership at the firm under his successor Philip Clarke.
In 2018, he again hit out at Mr Clarke, accusing him of “attacking” the business and agreeing with critics instead of defending his own firm. Retail Gazette reported Sir Terry as describing this as a “terrible, terrible error”.
Life after Tesco for Sir Terry most notably saw him become chairman of B&M Bargains for five years from 2012, growing the discount firm’s market valuation by around £2.8bn.
He’s now a keen investor, with LMA the latest to benefit from his financial power and expertise, although he told Business Live we “wouldn’t be seeing [him] on Dragon’s Den”.
So what exactly does Sir Terry look for in an investment?
“A number of things - firstly, a growing market”, the 63-year-old said.
“It’s much easier to develop a business where there’s a tailwind rather than a headwind in a market place. You’re looking for a product or service that’s got something special or unique that competitors don’t have. You’re looking at track record to see what has been achieved.”
The size of the business isn’t always an issue, he said, adding: “Some people feel they need a lot of money - others feel they can just get on with it and build and demonstrate they’ve got potential.
“And you’re looking at their people - their character, and you need to check they’re open to ideas and ready to take advice and be flexible.
“No matter how good the business idea is at the start, you know it’ll change as it’s rolled out. In order to survive, you must be ready to adapt.”
So will businesses from Liverpool have a better chance than others, given Sir Terry’s city upbringing?
“They have got to pass the same criteria as businesses anywhere else. But obviously coming from Liverpool, I’ve spent a long time here.
“I’m keen and interested in the city’s economy and how it’s developing, and would like to be a small part of it, if I can.”
The future of the high street
Sir Terry was also asked about the state of the retail market in the wake of bad news for the high street, including Debenhams going into administration last month.
He said retail spending is actually up, but because people are using different ways of buying items such as clothing, homeware and electronics, high streets will soon look very different.
“There are big challenges for traditional retailers due to digital and online, but actually retail spending is up. It’s growing and it’ll continue to grow.
“The challenge for traditional retailers is to make their product more attractive so people want to go there in the same way you can always eat at home, but prefer to go out for food.
“So that has got to happen with retailing too. People must prefer going to store because there’s something special there, as opposed to online.
“The high street will soon look different. More people will live on it, there will be more services like dentists and doctors, education and gyms - and retail will offer more services and more displays of products, than actually stocking it.”
He said it was also important to “recognise and celebrate” successful retail business like B&M whose stores are “prospering in this environment”, adding: “The North West is producing a lot of very successful new retail concepts, even if a lot of them are online too.”
So with Home Bargains, Primark and Sir Terry’s very own B&M thriving, is discount retail the future of the market?
“I think B&M does have a good future, but I think the good thing about retailing is it’s always been fast moving. It’s a mirror of changes in society.
“You will see new retail concepts emerge and do well. It’s about having your finger on the customer’s pulse and understanding what customers want next, and providing it.”