Gerald rejected his grammar school to work on his father’s stall in London’s famous Petticoat Lane market. It was a cut-throat trading environment where traders were predators. He loved it. Gerald worked the crowds, seducing them into buying his goods. Huge crowds went to Petticoat Lane in the 1960s, for entertainment as well as shopping. They loved the hustle and bustle and the chance of a bargain. Gerald flourished with his ‘gift of the gab’¹ and endless stream of jokes.

Gerald inherited his father’s shops and lured customers into them with low quality cut-price glitter. Ratner jewellery was a Saturday night treat. He made massive profits from his ‘pile it high, sell it cheap’ Petticoat Lane technique.

In 25 years, Gerald’s retailing empire expanded exponentially, reaching 2,500 shops by 1991.² He was a super-star in the retailing world, using opportunistic trader techniques.He hooked customers by saying anything where truth was secondary to successful sales.

23^rd April, 1991

Gerald was invited to the Institute of Directors’ annual dinner as their principal speaker. Six thousand businessmen were there to applaud his success. Gerald had a ‘crowd’ situation, which created an adrenalin surge just like his years as a market trader.

Everything went well as he read his prepared speech. When the Q&A session began his world imploded. He was asked a soft-ball question about the ‘secrets’ of his success. He replied with classic outrageous attention seeking repartee. This was an example of chutzpah,³ which was second nature from his years in Petticoat Lane.

He said,

‘We do cut-glass sherry decanters complete with six glasses on a silver-plated tray that your butler can serve you drinks on, all for £4.95,’…’People say: ‘How can you sell this for such a low price?’ I say: ‘Because it’s total crap.’⁴

Exhilarated by the roars of laughter he continued,

‘We sold a pair of earrings for under £1, which is cheaper than a shrimp sandwich from Marks and Spencer, but probably wouldn’t last as long.’ ⁵

Gerald got a rapturous round of applause but destroyed his company. His display of total contempt for his customers and products was unforgiveable. He committed the sin no market trader would ever commit; he flaunted his predatory colours. Petticoat Lane customers were there to be fleeced but no-one was so indiscreet as to say so.

[insert newspaper photo]

Eighteen months later in November 1992, Gerald Ratner sold his shares and left the company he’d built up. He remained a rich man but he’d been ridiculed and the scars lasted the rest of his life.

Notes

1 THE GIFT OF THE GAB | English meaning – Cambridge Dictionary

2 Gerald Ratner – Wikipedia

3 chutzpah definition – Search (bing.com)

4 Gerald Ratner still reeling 30 years on from gaffe | This is Money see also

The Speech That Cost Nearly a Billion Dollars (todayifoundout.com)

5 loc.cit.