John Lewis boss warns of further store closures ahead
Details of the new chairman's first speech to partners are leaked and suggest the retailer plans to dig deeper for savings.
Thursday 6 February 2020 17:38, UK
The new head of the John Lewis Partnership has warned colleagues more store closures and job losses lie ahead unless its financial performance improves.
Sharon White, who ran the media-to-telecoms regulator Ofcom until taking over as partnership chairman on Tuesday, used her first speech to top managers to promote a greater "ethical and environmental" approach.
Ms White also demanded a drive for diversity so the employee-owned company would become more "reflective of society".
Of its 81,000 staff - known as partners - just over 15% are from ethnic minority backgrounds.
The partnership, which comprises John Lewis department stores and the Waitrose supermarket chain, has endured troubled times alongside much of the retail sector over the past few years.
It closed 12 unprofitable supermarkets in 2019 with the loss of 1,100 jobs.
Its much-lauded bonuses have been cut for six consecutive years, to 3% of salary for 2018, while partners have already been warned there may not be a payout when 2019's award becomes due this March.
The partnership has been slashing costs to help account for the spending slowdown - most recently through a shake-up of its group management - following a festive season that saw sales go into reverse.
Ms White made her remarks at the group's Odney Club facility in Berkshire as she assumed the role of chairman - succeeding Sir Charlie Mayfield.
Her speech to colleagues, leaked to The Guardian, raised the spectre of further cuts without the return of profitability needed to invest in improvements.
She warned of "difficult decisions about stores and about jobs" and suggested there was also more to do to meet the obligations expected of a business of its size - for customers and partners alike - on issues such as diversity and tackling climate change.
She said: "We should be owning the ethical and environmental agenda. I think in 2020 the partnership values are more important than ever.
"More than 10 years since financial crisis and as a country we are still asking: is business doing its role to create a good society, good jobs and decent pay?"
The partnership is due to release its annual results on 5 March.