Meet the new John Lewis, same as the old John Lewis – up to a point, anyway. And up to an important point, which should never be lost. 

The early findings of John Lewis Partnership chair Dame Sharon White’s strategic review show no signs of babies disappearing with the bathwater, as can often happen when businesses seek to transform.

White is seeking to “update our purpose so that it resonates with today’s customers and partners”. More than ever, purpose is a prerequisite of profitability in the contemporary world.

That purpose may build upon traditional retail attributes and differentiators, such as Primark’s relentless, laser focus on value. Or it may be, as with John Lewis, a way of doing business that sets it apart.

Former Marks & Spencer chief executive Lord Rose used to urge his staff to “look out the window”. It’s a great piece of advice because it prompts questions about whether you are relevant to the world you see. It tells you about what needs to change and what should stay the same.

Renewed vision

White sought the views of her 80,000 colleagues at John Lewis department stores and Waitrose supermarkets as she conducted her review, which is ongoing and will conclude by autumn.

Today she said: “Customers and partners have told us that our purpose should be modern, relevant and inspiring – while staying true to our core principles. The themes of tackling inequality, of wellbeing and sustainable living will be at its core. These have never felt so relevant, with the economic uncertainty and social inequality coming out of the pandemic.

“Our updated purpose will drive our commercial decisions and shape our employment practices. It will influence the services we offer to customers and how we work with new commercial partners. It could see us, for instance, taking firmer action on fair pay, working conditions, diversity and inclusion.”

“White’s take on the world makes sense. She does seem to have looked out of the window and be determined to adapt to what she’s observed”

She, and they, are right. The vision on which the John Lewis Partnership was built is as applicable now as it was when the retailer originally set out on its trailblazing path.

White’s predecessor, Sir Charlie Mayfield, perhaps lost sight of the primacy of purpose when he initiated radical change last year. Some of his initiatives, designed to wring efficiencies out of the two divisions, might have made intellectual sense but brought chaos.

Notably, they left the core department stores businesses headless – a decision since reversed by White through the appointment of former Co-op deputy chief executive Pippa Wicks.

But White’s focus on purpose would not be enough on its own. For the purpose to be fulfilled, the company has to succeed – and it has been under pressure for some time.

It was good that she also elaborated an overarching commercial strategy for the partnership, which looks to the future as well as to the past. Executional excellence must accompany the sense of mission.

Decisive and determined

Her take on the world makes sense. She does seem to have looked out of the window and be determined to adapt to what she’s observed.

White has pledged to “double down on making shopping easier and more convenient” by investing in areas such as in-store and online availability, new services and new distribution channels, such as the recent click-and-collect tie-up with the Co-op.

There is decisiveness about how the various cogs in the retail wheel fit together. “Shops will always be crucial to the brand, but they will be in support of online,” White maintains.

As many retailers have reported, the Covid-19 pandemic has accelerated the pace of change. Now more than ever, there is the momentum and necessity to genuinely create that elusive “seamless” business model that adds up to more than the sum of its parts.

It could result in a business that carries on meeting the needs and expectations of existing customers while, complemented by a modernised purpose, appealing to the shopping habits and attitudes of a new generation of consumers. As every retailer knows, failure to perennially replenish the customer base is fatal.

“The question ‘what am I doing here?’ is not an airy-fairy consideration for philosophers in ivory towers. For some retailers, it’s an existential one”

Vitally, there is a timeline by which progress towards renewed success at JLP can be measured. According to White: “The strategic review should see green shoots in our performance over the next nine to 12 months and our profits recovering over the next three to five years.”

She said “the beauty of being a partnership is that we are able to take a long-term view” and to think “about the opportunities to remain a thriving partnership in 100 years’ time”.

That’s a luxury not available to every business, especially in torrid times when day-to-day survival is the preoccupation of some.

But that’s surely the point. If there had been deeper thought about what was happening on the other side of the window and what was needed for future success then some of the casualties could have been avoided.

The question ‘what am I doing here?’ is not an airy-fairy consideration for philosophers in ivory towers. For some retailers, it’s an existential one. It’s one that White seems determined to answer.