Interviews  >  Lawrence Huggler: A man of many colours

Written by: Nick Kirby Posted: 26/10/2012

Issue 22: Lawrence Huggler As Managing Director of the Huggler Group, Lawrence Huggler oversees a seemingly eclectic mix of businesses, but there is very clear thinking behind each one, as he explains to Nick Kirby.

You wouldn't normally expect one company to have a hand in hotels, restaurants, printing, beauty products and online posters, photobooks and greetings cards, but that is exactly what the Huggler Group does.

Huggler is a name that has been synonymous with business in Jersey for decades, but it is only in the last eight years that the Group has really started to branch out into these diverse areas.

The Group currently owns and operates the five-star Club Hotel & Spa, and the three-star Apollo Hotel in Jersey (as well as the Apollo Hotel in Basingstoke). It also owns and operates Bohemia Bar & Restaurant in Jersey, as well as being the major shareholder in feelunique.com, an online health and beauty retailer, and mymemory.com, the UK's fastest growing site for photobooks and photo-related products. And to round things off, Huggler Properties develops, owns and manages properties, and Huggler Print is Jersey's largest printer.

At the helm of the company is Managing Director, Lawrence Huggler, who appreciates that this may seem something of a miscellany of business interests. He took time to explain to businesslife.co exactly how this all came about.

Tell us how you got started in business.

While I was at Nottingham Uni doing my engineering degree, I was actually doing some motor racing, and left university to try and carry on with that for a couple of years. Unfortunately, I was no Michael Schumacher and it's a very expensive sport to be in, so in 1999 I decided to go into the family business.

At the time, we had just purchased a former Hilton hotel in Basingstoke, so my first job was to take over its day-to-day running, and then its redevelopment – we knocked half of it down and rebuilt it. Running a hotel while developing it was quite a steep learning curve. In 2003, after that project was complete, I returned to Jersey.

Why did you move back?

To take over the management of the Jersey hotels as well. At the time we had the Apollo and the Beaufort, and they were both three-star leisure hotels. When I came back, the original plan had been to redevelop the Beaufort and we had been looking at options such as commercial property and flats, then we came up with the idea of creating a boutique hotel. No new hotel had been opened in Jersey for over 20 years, so it was a pretty big concept.

We designed and developed Bohemia Bar & Restaurant first, and 20 months or so after that had launched, we opened the hotel above it, having totally gutted and rebuilt it.

As there had been no hotel for 20 years, were there naysayers – people expecting you to fail?

Jersey people aren't afraid to speak their minds or be critical. When we announced the plan, some people said we were mad even thinking about opening a hotel. So its success has been very satisfying! Only 18 months after the restaurant opened we achieved a Michelin-star accreditation – a phenomenal achievement by the Bohemia team. This happened just a couple of months before we opened the hotel, so the timing couldn't have been better.

Aside from the hotels, the family business has its printing operation, but you have also branched out into e-commerce. Did you spot an opening in the market?

Printing is where the family business started 40 years ago. My grandfather was a newsagent and he came up with a news-receipts system, which he started printing, and he and my father built that side of the business up. We still continue to do that today along with general printing work.

In October 2005, we launched feelunique.com. It wasn't really a new opening in the market – we were already doing health and beauty through the spa and we thought there was an opportunity to take that online. However, once we started, it became something else altogether. About nine months in, there was an opportunity to invest in a similar company, Island Cosmetics, run by Aaron Chatterley and Richard Schiessl, which was rebranded under the feelunique.com name. It has grown into a fantastic business we are proud to be part of.

And what about mymemory.com?

That developed out of looking long-term at what we could do with printing. If you're in Jersey, you only have a marketplace of 90,000 people, so you are limited as to how big you can grow unless you get off the island. But if you go online you have the potential to reach an audience of hundreds of millions. From a printing perspective, we've never really been just a Jersey printer – most of our printing has gone off-island for the news-receipts system – so the idea was to use the internet to continue and evolve that. Rebecca Gimenez and Karl Moss, who has a great background in e-commerce, are leading this. While only in its second year, it is growing very strongly and hopefully will be very successful.

You launched the hotel and restaurant and feelunique.com prior to the recession, yet you have managed to ride it out. What would you put that down to?

We don't really have any debt, which makes life easier. We have great management teams in all the businesses, including Tim Phillips at The Club Hotel & Spa and Duarte Silva at the Apollo Hotel, and we kept doing what we were doing before and doing it as well as we could. Yes, we made changes and had to react, but basically you have to do what you do well – and perhaps do it a little better – in a tough market.

Hospitality is a very competitive industry. Do you feel the Channel Islands is a more ruthless place to do business?

In most industries, the islands are incredibly competitive. Everyone is competing for a finite amount of business. This isn't helped by the fact that costs here are higher than in the UK. Take restaurants, for example – there are 180-odd restaurants in Jersey, so that's one for every other day of the year, for a population of 90,000. While everyone grumbles about the death of tourism, it's still an enormous business, with 700,000 visitors a year – and that is vital to our survival, yet everyone still has to go for that market. It can be tough.

How has the abolition of LVCR affected your business?

Not massively to be honest, because most of what feelunique.com sells is over the threshold, and following a recent ruling in the UK, photobooks are exempt from VAT being classed as books, so it wasn't a big thing for us. Besides, we weren't in Jersey for LVCR, we were here because we all live here, and the reason we are in online retail is that we wanted to sell to more than 90,000 people. We weren't like the big UK guys who came here for a postbox.

You're not alone in levelling that charge…

There is a distinct difference between e-commerce, which is what we do, and fulfilment. We're irritated by the whole ‘fulfilment industry' thing, as it's people who just set up a warehouse here to ship in and out. Our employees are all on-island doing everything from marketing to web development and design, whereas a lot of those postbox people don't employ anybody so brought little, if any benefit to the island.

Moving back to tourism, what is your view on where tourism stands right now, and what, if anything, can be done to boost it?

Tourism is still a pretty big market – tourists pay about £11.5 million in GST, around one-fifth of the total – but Jersey is never going to be the huge mass destination it was 10 or 15 years ago. It can be an upmarket, niche short-break destination, however, and I believe that is the way to go – to deliberately target high-value tourists.

The point is you don't go somewhere because you think it's cheap, you go because it's aspirational, irrespective of your budget. So if you market somewhere as a luxury destination it doesn't mean people on a lower budget won't come. There are more three-star hotels in Monaco than there are five-star, but you wouldn't think that from the image.

We also need to look at other sources of tourists. We have more flights from Germany than we've had for years, and seeing as it has a strong economy and 70 to 80 million people, there are opportunities to be had.

People have criticised Jersey Tourism for not getting their marketing right, but you are something of an advocate of them. Why is that?

I think they've got an impossible task, as they've got to be all things to all people. Their job is to market an entire industry that goes from a campsite to a five-star spa and Michelin-star product. It's hard to cover everything in one go and sometimes I think they try too hard – the moment you try and be everything, you will lose impact. But if they try to narrow it down – say aim purely at luxury, as I'm advocating – you get people in the B&B industry saying ‘this can't be right'. But remember, I also have to fill our three-star hotel and I know marketing Jersey as aspirational will do this, not marketing on price.

Back to retail, it's unusual to see an online retailer migrate to the high street as you have with the feelunique shops. Why did you do that?

It's just part of the bigger picture, the entire offering – feelunique has the feelunique Spa at the hotel, feelunique Hair & Beauty at Longueville and now we have the feelunique shops in both Jersey and Guernsey. So if someone wants a consultation about a hair product, if they want spa products, then they have options. It's that simple.

So what comes next – more organic growth or something different?

We want to continue what we are doing, but we're always looking for opportunities. We've looked at hotel options in London, but recently we have concentrated on investing. We tried to take a small listed company private, but after building up a three per cent stake the share price rose too high and we had to walk away.

With mymemory.com, it took years of weighing up options before we found one we could work with and be comfortable with. We're less than two years into it and we've got triple-digit percentage growth, so that is keeping us occupied.

What comes next? Well, there's nothing concrete in the pipeline, but we wouldn't rule out anything. Never say never!



Add a Comment

  • *
  • *
  • *
  • *
  • Submit
Kroll

It's easy to stay current with blglobal.co.uk.

Just sign up for our email updates!

Yes please! No thanks!