From Zero to $570 Million – How Jo Horgan Built Mecca

Darren_Urquhart

In the world of beauty retail, few stories are as compelling and inspiring as that of Jo Horgan, the visionary founder of Mecca. Her journey from a single store in South Yarra to a retail powerhouse turning over more than $570 million annually is a testament to the power of vision, perseverance, and a relentless focus on customer experience.

Jo Horgan - visionary founder of Mecca

Growing Up in Family Business

Jo Horgan’s entrepreneurial spirit was perhaps predestined. Born to an Irish father who owned factories making yarn and clothing for major brands like Marks & Spencer, and an English mother who ran a mail-order fashion start-up, Jo grew up in an environment where business was a part of everyday life. Despite this background, she chose to follow her passion for English literature, studying it at university.

“My parents instilled in me the belief that education was the most important doorway in your life,” Jo recalls. “And they coupled that with ‘do something you absolutely love.’ I just loved English literature and languages. That was super fascinating to me.”

Challenging the Beauty Retail Status Quo

After her studies, Jo landed a marketing role at L’Oréal in the UK. It was here that she identified a significant gap in the beauty retail market. Department stores, dominated by male executives, dictated how women should buy makeup, often through a fragmented and frustrating process. Jo envisioned a better way—a store where women could explore a curated selection of the best beauty products with expert guidance.

In 1997, she decided to take a bold step. At the age of 27, Jo opened the first Mecca store in South Yarra, Melbourne. The initial response was underwhelming. “We had our launch party, which felt fabulous. And then a few sort of well-wishers bought a couple of things. And then silence,” Jo shares.

For the first four years, Mecca struggled financially, losing money each year. Jo’s husband, Peter Wetenhall, a Boston Consulting executive, believed in her vision so much that he guaranteed the bank loan with his future salary. Despite their best efforts, their accountant warned them that some businesses just aren’t meant to be.

Building a Beauty Empire

Jo and Peter refused to give up. Their perseverance and commitment to their vision paid off. Jo’s ability to adapt, problem-solve, and maintain a relentless focus on customer experience were crucial. She negotiated with brands, cut costs, and continued to innovate, ensuring Mecca offered products and a shopping experience that couldn’t be found elsewhere.

“Things really can be stacked against you,” Jo says. “But as I have always said, I am a natural optimist. And rather than having a voice in my head that said, ‘Oh, you are so stupid, how could you ever let that happen? How does this bode for the rest of this adventure that you’re on? This is such a bad omen,’ I was like, oh, well, onwards and upwards. There’s always tomorrow, and there are 10 million brilliant things about this, and I’m not going to focus on that one thing.”

Over the next 25 years, Mecca grew into a retail giant with over 100 stores. Jo attributes part of this success to remaining a private company, which allowed them to focus solely on their customers. This focus enabled Mecca to pivot quickly during the pandemic, maintaining their entrepreneurial spirit and customer-centric approach.

Mecca store by Jo Horgan

Insights for Business Owners

Jo Horgan’s journey with Mecca offers valuable lessons for business owners:

✨ Vision and Differentiation: Have a clear, unique vision that sets you apart from competitors.

💪 Perseverance: Stay optimistic and persistent, even when facing significant challenges.

❤️ Customer Focus: Prioritize customer experience and build strong relationships with your customers.

🔄 Adaptability: Be ready to pivot and adapt your strategy as needed.

👫 Support System: Surround yourself with supportive partners and a capable team.

📊 Resource Management: Be mindful of your finances and make strategic investments.

📚 Education and Empowerment: Invest in the education and engagement of your team.

🔒 Private Ownership: Consider the benefits of staying private to maintain focus on your core values and customer experience.

Jo Horgan’s story is a shining example of what can be achieved with vision, resilience, and a relentless focus on delivering exceptional customer experiences. Whether you’re a seasoned business owner or just starting, her journey offers valuable lessons that can inspire and guide you on your path to success.

Listen to Jo Horgan interviewed: