John Lewis chair Sharon White wins confidence vote but staff rebuke losses

Dame Sharon White won a confidence vote on her leadership as chair of the John Lewis Partnership (JLP) on Wednesday, but was rebuked over the struggling retailer’s financial performance.

Partners gave their backing at an internal representatives’ meeting despite her plans to consider outside investment in the employee-owned group.

The suggestion led to criticism of Ms White, including from retail consultant and television personality Mary Portas who said the partnership, which also includes supermarket Waitrose, risked losing its soul.

Management and members of its elected partnership council gathered for a two-day meeting at its Odney Club holiday retreat in Berkshire.

Ms White told the employee event: “I want to be absolutely categorical. The John Lewis Partnership will always be an employee-owned business. No ifs, no buts – there is absolutely no question of demutualisation.

“Our model is the very reason I joined the partnership because I believe profoundly in an approach of kinder capitalism in the 21st century that demonstrates our ability to combine commercial excellence with social purpose.”

In a non-binding vote, the partnership council voted to support Ms White in continuing her leadership but was critical of the latest financial performance.

JLP slumped to a hefty loss in the latest financial year, meaning staff missed out on an annual bonus for only the second time in 70 years, and warned of potential job cuts.

Chris Earnshaw, president of the JLP council, said the vote was “central to how we exercise our democratic principles and ownership of the business.”

He said: “The council did not support last year’s performance, in which we reported a full-year loss and no partner bonus. The council, chair and board will continue to work together to ensure the long-term success of the partnership and our employee-owned model.”

Ms White also said planned efficiency savings of £900m meant the group was on a “clear and secure path back to profitability”.

However, JLP’s new chief executive, Nish Kankiwala, has warned it is “fundamentally not producing sufficient profit” in current performance.