Unveiling the Insightful Interview: John Lewis Staff Probe Dame Sharon White in Exclusive Q&A Session

This week, John Lewis employees will have the opportunity to question Dame Sharon White about her unexpected resignation as Chair of the employee-owned retailer.

They will want to know the reasons behind White’s departure after only five years, making her the shortest-serving CEO since the company’s inception nearly 100 years ago, and what her exit means for her controversial turnaround plan.

According to an insider, her sudden announcement has caused “a lot of reflection and sadness” among the staff.

This comes just weeks after White admitted that it would take longer than anticipated to return the business, which also includes the Waitrose grocery chain, to sustainable profitability.

White, a former civil servant and regulator with no prior retail experience, has attempted to expand the partnership into new sectors such as property and financial services.

She has also closed underperforming department stores, reduced head office positions, and decreased debt.

Although losses have decreased, John Lewis is still grappling with the impact of inflation and the shift to online shopping, which White described as hitting “like a hurricane”.

Staff bonuses have been cancelled in two of the last three years.

White’s strategy, including the decision to eliminate John Lewis’s well-known “Never Knowingly Undersold” price guarantee, has faced strong criticism. In May, the partnership’s governing council voted against her management of the business but supported her future plans.

‘She lost the dressing room,’ said retail veteran Richard Hyman.

It is unlikely that there will be another vote of confidence in White and her strategy at this week’s council meeting.

White, who earned £1 million per year, will face inquiries about her long departure plans.

She recently appointed brand expert Nish Kankiwala as the partnership’s first Chief Executive, and her official stance is that she will remain in her position until February 2025 while a replacement is found. However, Hyman criticized this idea as “inconceivable” and “unacceptable”.

Attracting a successor will not be easy, as John Lewis, being a mutual company, cannot offer lucrative stock options to entice high-performing executives.

Additionally, the partnership’s structure makes it less susceptible to takeovers.

One option is to downgrade the Chairman role to a part-time position, aligning with best corporate practices, but there are drawbacks to this approach.

‘What the John Lewis Partnership needs is a retail veteran with a strong track record in the industry, preferably with experience in turning businesses around,’ said Neil Saunders, Managing Director of Retail at consultancy GlobalData.

Downgrading the role ‘will limit their options,’ he added.

Unusually, the Chairman of John Lewis is also responsible for the company’s commercial performance.

Saunders commented: ‘It is not really a part-time role.

‘Sadly, there is a lot of confusion regarding the company’s structure and the role of the Chairman.

‘This does not put them in a position to succeed.’

Experts suggest that whoever is selected to lead the company should abandon White’s diversification plans and focus on the core retail business.

‘The key issues are retail – and so are the solutions,’ said Hyman. ‘They’ve got to trade their way out so the partners can regain their bonuses.’