John Lewis must regain its ‘soul’ to survive, says Mary Portas
Mary Portas, one of Britain’s leading retail consultants, has said the John Lewis group faces a battle to regain its soul, amid its potential move to welcome outside ownership.
Portas, who advised David Cameron’s coalition government on the future of high streets, sent an open letter to the group’s chair, Sharon White, and Nish Kankiwala, who joins as the group’s first chief executive on Monday, urging them not to lose sight of its values and position as a British institution.
She referenced John Lewis and supermarket Waitrose’s recent financial woes and White’s attempt to shore up and rebuild the retailer.
“What’s worrying me is you might think your fight is purely financial. It’s not.
“The battle in hand is far more nuanced. It’s about what makes up the soul of your brand. The intangibles, the shared beliefs, the beautiful things that can’t be captured in financial projections but earn a little space in people’s hearts.
“Somehow, in recent years, you’ve let go of the soul. We’ve all felt the subtle, but powerful, erasure of what John Lewis is, a severing of what’s always set your business apart.”
The retail group is owned 100% by its staff, but White is considering a plan to change its current ownership structure to raise between £1bn and £2bn of outside investment.
The company would only consider selling a minority stake – with emphasis given to retaining its employee ownership, where staff are known as “partners” and have a stake in the firm.
In its most recent financial results the group lost £234m. Sales fell by 3% at Waitrose with steadier sales at the department store arm offsetting the fall. White warned staff numbers would have to be cut, and apologised for scrapping its annual bonus for staff. The last time it was not
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