Entertainer toy chain becomes employee owned

A well known UK toy retailer shifts to employee ownership, signaling a broader trend.

Entertainer toy chain becomes employee owned

The Entertainer, the UK's largest independent toy retailer, will transfer ownership to its staff, giving 1,900 employees a stake in the business. A three-person trust will own 100% of the company, and an advisory board of staff will help shape policy. The group operates more than 160 shops and concessions in Tesco, Matalan and M&S. Founders Gary and Catherine Grant say the move aims to preserve independence and the family legacy while rewarding workers through tax-free bonuses tied to future profits.

The shift to employee ownership reflects a growing interest in governance models that share profits with workers. It could boost loyalty and long-term planning, since staff benefit directly from future performance. At the same time, it introduces new governance complexities and ties rewards to the company’s ability to generate profits. For a retail sector facing online competition and high street costs, the model may offer resilience if managed well, but it also concentrates risk in a three-person trust and in the hands of a broad employee base.

Highlights

The Entertainer's experiment could become a blueprint or a caution for other retailers