As Cersei Lannister says in the first season of Game of Thrones “when you play the game of thrones, you win or die.” While some family business successions are challenging, others don’t necessarily involve “blood on the wall”.
On March 2nd, ten Beedie Ambassadors gathered at the Hotel Vancouver in their best cocktail attire for the Family Legacy Series. This year the event celebrated the esteemed Rosen family.
Founded 1954 by Harry Rosen, the eponymous luxury retailer started in a humble 500 square foot store in an area of Toronto known as Cabbagetown. This fashion force of nature has now grown to dominate and currently holds 40% of the Canadian market in high-end menswear. Harry Rosen has stores across Canada, the jewel in the crown being the 50,000 square foot flagship on Toronto’s Bloor Street (glamorously known as the Mink Mile). So how did a small shop in Cabbagetown grow to take over Canadian menswear? Well, Larry Rosen, Harry’s son, says it was all about the company’s focus on the customer.
As Larry said in his interview, Harry “willed [the business] into existence, building it one customer at a time”. This was exemplified by Harry keeping detailed cards that listed measurements, special requirements, and style preferences of his customers. This tradition has carried through, and is now the foundation of Harry Rosen’s famous customer database, a key tool in helping sales associates best serve their clients.
Larry Rosen took over the business as Chairman and Chief Executive Officer in 2000. Unlike many of the horror stories, Larry says that the transition was easy. He credits this firstly to a clear understand of generational roles. Harry was not interested in Larry being exactly like him, and this gave Larry a lot of freedom to take the company where he saw fit. While he strives to learn from his father and honour the path that he paved, he also works tirelessly to improve upon Harry’s work and move the company forward. Larry also shared that another key part of a seamless succession was having external assistance. This took the form of an impartial consulting firm who took all of the family members’ perspectives and feelings into account before making a recommendation. Larry then adopted this approach with his three sons as he begins planning for succession.
A big concern that both Larry and his father has, is having qualified people to take over the company. At Harry Rosen, it takes more than a last name to win you a position. Harry was adamant that his son “be his own man, do his own thing” before joining the company. Larry received a huge amount of education and worked as a lawyer before he started buying for Harry Rosen. He felt that his work experience before the family business gave him the skills and the confidence to succeed. He has adopted this attitude with his sons.
Whatever the Rosens decide to do next, it will be imperative that they put strong management in place as competition has increased with the introduction of American retail giants such as Nordstrom and Saks Fifth Avenue. When asked about these new competitors Larry did not seem worried; he felt that being a distinctly Canadian company who specializes in menswear sets Harry Rosen apart from their competitors. While the future of Canadian luxury goods is not clear, as far Larry is concerned, one thing is certain. There will always be a Rosen in charge of Harry Rosen.
Jordan Binotto is a senior student at the Beedie School of Business studying accounting and entrepreneurship. Jordan is passionate about fashion, art, and design. He plans on using the tools from his undergraduate degree to dominate the fashion world and plans on starting an internship with Prada next spring. Jordan is a Beedie Ambassador and Co-Captain for JDC West 2016 – 2017. Jordan recommends students get involved and make the most of their undergraduate experience!