John Lewis staff to vote on future plans as anger grows

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Dame Sharon WhiteImage source, John Lewis Partnership

By Daniel Thomas, Jemma Dempsey & Lucy Hooker

BBC News

The boss of John Lewis will face a vote of confidence on Wednesday, amid growing staff anger at her leadership.

It comes after Dame Sharon White said she was considering selling a stake in the retailer, meaning it would no longer fully owned by its employees.

John Lewis is seeking to revive growth after posting a huge loss last year and suspending its staff bonus .

But as job cuts loom, employees may use the biannual vote - which is non-binding - to push for change.

As well as owning a stake in the business, John Lewis staff - also known as partners - have a voice in the way it is run.

They elect councillors who twice a year meet to scrutinise the firm's performance and pass a vote of confidence in its leadership.

Wednesday's vote will take place during the all-day meeting at the Odney Club, a John Lewis-owned retreat near Maidenhead in Berkshire.

The ballot comes at an awkward time for Dame Sharon who became chair in 2020 and is trying to turn the chain's fortunes around.

John Lewis has been struggling to compete with High Street rivals such as Amazon and Primark, while its supermarket chain Waitrose has underperformed rivals Tesco and Aldi during the cost of living crisis.

The partnership posted its first ever annual loss of £517m in 2020 and has since announced a series of store closures. It also plans to cut £900m of costs by January 2026 and job cuts are likely.

The retailer sparked anger in March when it told its around 85,000 partners that they would have to go without a bonus for the second time in three years.

According to a survey of under 1,000 staff at the time, some 85% said they were not confident in the company's ability to deliver its strategy.

Dame Sharon has since suggested ways the partnership might revive growth, including by developing flats above John Lewis shops.

She has also indicated that she would consider raising funds by selling a stake in the business, sparking a negative reaction from retail experts.

In March, brand expert Mary Portas wrote an open letter to the partnership, saying John Lewis was one of the most "valued, loved, and trusted retail brands" in the UK but that it had "let go" of its soul.

Meanwhile Andy Street, who was managing director of the retailer from 2007 to 2016, said the change would be a "tragedy" if it occurred.

John Lewis has said its partnership model "will always be the heart of our business" and there is no guarantee it will seek outside investment.

However, on Wednesday Dame Sharon and other executives will be quizzed by councillors over the retailer's performance as part of the biannual meeting.

The councillors will then vote on two motions - one on whether the council has confidence in the progress of the partnership under the chairman's leadership over the past year, and the other on whether it can support the chairman to take the business forward.

Members can answer on a scale from "strongly agree" to "strongly disagree", opening the door to a potential rebellion.

The John Lewis Partnership does have the power to remove the chairwoman by tabling a resolution on the partnership's constitution, but this outcome is considered unlikely.

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