London Daily

Focus on the big picture.
Thursday, Feb 13, 2025

It would be ‘a tragedy’ if John Lewis ownership model changes, says former boss

It would be ‘a tragedy’ if John Lewis ownership model changes, says former boss

Reports last week suggested the company is considering ending its 100% staff-owned structure
It would be “a tragedy” if John Lewis changed its ownership model, a former boss has said.

Reports last week suggested the company is considering ending its 100% staff-owned structure, with the partnership’s chairwoman, Sharon White, exploring plans to sell a minority stake in the business to raise cash.

West Midlands Mayor Andy Street, who was managing director of the retailer until 2016, acknowledged the company’s financial difficulties, but urged the leadership to think about what makes it “special”.

He told BBC One’s Sunday With Laura Kuenssberg: “It would be a tragedy if that occurred because I think John Lewis goes a bit beyond a shop.

“You can buy the same television in other places is the truth, but John Lewis was about actually a way of doing business, actually showing the market there was a better way almost, and in fact that’s now potentially under threat.

“So I would urge the leadership of John Lewis to think about what’s really at the heart of it, what makes it special, and hold on to that.

“You have to address the underlying point. This was ever the case in the John Lewis model over 150 years – if you can’t go to the equity markets you have to trade your way through it.

“Some of the best retailers at the moment – Next, Primark, Selfridges – are proving physical retail can still do that, and that’s really the challenge to John Lewis and Waitrose.”

It came as former minister Gareth Thomas said John Lewis could be helped to remain staff-owned by a proposed law to be tabled in Parliament.

The Harrow West Labour MP plans to introduce the Co-operatives (Permanent Shares) Bill on Wednesday, aimed at helping companies with the same ownership structure as John Lewis to remain “owned firmly by British people”.

The chairman of the Mutuals All-Party Parliamentary Group told the PA news agency: “It is the route to help John Lewis stay completely employee-owned.

“At the same time, it would potentially help co-operatives and mutuals access significant capital to invest in their businesses, expand the services they offer, and more.

“It will allow co-operatives and mutuals to issue shares that would not change the governance structure of their business.

“The return for the investor is similar to a traditional loan or a bond in that way.

“There is a dividend or interest return, but crucially what you don’t give up is significant ownership rights.”

He added: “Basically it is rocket fuel for the co-operative and mutual sector.

“It would help to provide significant capital investment for them over time without risking fundamental changes in the way their business operates.”

A John Lewis Group spokesman said: “We’ve always said we would seek partnerships to help fund our transformation and exciting growth plans.

“We’ve done this with Ocado in the past and now with abrdn.

“Our partners, who own the business, will be the first to hear about any developments.”
Newsletter

Related Articles

0:00
0:00
Close
Amazingly Good News for USA and the World: Gabbard Confirmed as U.S. Intel Chief in Latest Victory for Trump!
UK Business Leaders Expect Profit Increase Despite Regulatory Crackdown on the Shadow Economy
Trump Discusses NATO Membership for Ukraine During Diplomatic Negotiations
Trump Declares Upcoming Meeting with Putin in Saudi Arabia Amidst Ukraine Crisis
Israel Warns of Military Action While Hostage Negotiations with Hamas Continue
2024 Sees a Record High of Journalists Killed, CPJ Report Reveals
Trump and Putin Engage in Phone Conversation During Ukraine Conflict, Peace Talks Commenced
Climate change presents considerable threats to cocoa production worldwide.
US Teacher Detained in Russia Freed Amid Optimism for Improved US-Russia Relations
EU-UK Security Pact Unhindered by Fishing Rights Dispute, Says EU President
Tories Criticize Proposed Chagos Islands Sovereignty Transfer Amid Escalating Cost Claims
World Leaders Promote Ethical and Inclusive AI Governance at Paris Summit
Deloitte US Revises Policies in Response to Evolving Political Climate
Apple Releases Critical Security Update Following Reports of Vulnerabilities
US Senate Moves Forward with Tulsi Gabbard's Nomination for Director of National Intelligence.
Israel Warns of Ending Gaza Ceasefire Amid Hostage Situation
King Abdullah II Dismisses US Proposal to Relocate Palestinians, Commits to Welcoming Children from Gaza.
Sam Altman Addresses Elon Musk's Offer to Acquire OpenAI
OpenAI Reconfirms Its Independence After Musk's $97 Billion Offer.
Elon Musk Cautions That the U.S. Could Face Bankruptcy Without Reductions in Federal Spending.
How Spain Transformed from High Unemployment to Eurozone Growth Leader
FEMA Allocated Fifty-Nine Million Dollars to House Illegal Migrants in Luxury Hotels, Triggers Investigation
Australian Billionaires Set to Encounter New Wealth Tax Under Greens Initiative
U.S. Secret Service Invests Two Million Dollars in High-Quality, Effective Recruitment Ad Directed by Michael Bay
MPs to Receive Proposed 2.8% Pay Increase, Raising Salaries to £93,904 – It’s Legal, and That’s Exactly the Problem
The European Union Shifts Focus to AI Innovation Amid Global Competition (or at least this is what they claim)
Europe's far-right leaders pledge to 'reclaim' the continent in the wake of Trump's reelection.
Keir Starmer Under Examination Regarding His Legal Strategy
Merz and Scholz Spar Over Migration and Economic Strategies in Pre-Election Discussion
"Marrow stupid": Senator John Kennedy Blasts UK Prime Minister Keir Starmer Over Chagos Islands Transfer
Nigel Farage’s Reform UK Surge Reshapes Electoral Dynamics
Kemi Badenoch Faces Internal Criticism After 100 Days as Tory Leader
Campaigners Urge UK to Apologise for Forced Adoptions
Church of England Upholds Traditional Eucharistic Elements Amid Calls for Alternatives
Rayner Defends Approach at Grenfell Tower Meeting Amid Dismantling Plan
China Implements Tit-for-Tat Tariffs on US Goods Amid Trade Escalation
Italy and Wales Set for Six Nations Clash at Rome’s Stadio Olimpico
Ministry of Justice Apologises Over Prisoner Early Release Letter Error
Rare First Edition Harry Potter Book Sells for Over Twenty-One Thousand Pounds
Drax Power Station Under Scrutiny for Incomplete Wood Sourcing Reporting
UK Government Reaffirms Pledge to Build 1.5 Million New Homes by 2029
Freed Israeli Hostage Learns of Family's Death After Release from Gaza
French President Macron Employs Deepfake Technology to Advocate for AI Summit
Trump Names Musk to Investigate Government Fraud Amidst Controversy
Police Stop Ed Sheeran's Street Performance in Bengaluru
FBI Alerts Smartphone Users About Toll Scam Threat
Australian Educator Declares Identity as a Cat, Sparking Parental Backlash
Kremlin Addresses Claims of Trump-Putin Phone Conversation in Light of Ukraine Crisis
Trump Connects with Putin to Address the Ukraine Crisis
Super Bowl Ad Prices Soar to Record Highs Amid Streaming Surge
×