John Lewis finds new Chairman among Tesco’s ranks

The John Lewis Partnership has announced its new Chairman following Sharon White’s decision to step down at the end of her term. Her replacement? Former Tesco exec Jason Tarry.

The owner of John Lewis department stores and Waitrose supermarkets said he “brings over 33 years of experience at Tesco where he was most recently the UK & Ireland CEO, a role he held for six years. His experience spans grocery, general merchandise and fashion in senior commercial, operational and general management positions, having joined the Tesco graduate programme in 1990”.

Major player in F&F growth

It will be an interesting change of scene for someone who spent such a large chunk of his career at one company with John Lewis much smaller than and very different to Tesco. Its Waitrose supermarkets also have a more upscale edge and the John Lewis department stores clearly mean a much deeper dive into multibrand fashion and interiors.

But importantly, he led the expansion of F&F Clothing for Tesco across Europe as Group CEO.

He’s expected to start in September, at which point White will step down “and support the transition as required”.

Deputy Chairman Rita Clifton thanked White “for successfully leading the Partnership through one of the most testing periods in its history”. She said she’s “faced into the toughest decisions and overseen the Partnership’s financial recovery; we are in good financial health with a return to profit, and have a strong balance sheet with record investment planned this year. Sharon has also helped ensure that employee ownership of the Partnership is secure”.

She added that as the firm “moves into the next phase of its modernisation focused on our core retail business as well future growth, we are confident that Jason will provide the kind of inspirational leadership, a proven track record in multi-channel, multi-category retail success and a strong identification with Partnership values that we are seeking in this role”.

She also highlighted how he impressed everyone throughout the interview process with his “warmth, his belief in the Partnership’s ideals and democratic principles and his appreciation for our unique and special brands”.

Meanwhile, the incoming Chairman said: “The Partnership and its brands stand for trust, value, quality and service. [It] is unique and I’ve long been an admirer of the employee-ownership model, its values and Partner-led customer service. This starts with a sharp focus on being brilliant retailers for customers and investing in growth.”

It’s perhaps significant that the company has appointed a seasoned retail executive to its top role. It had come in for criticism when former civil servant Sharon White was appointed, especially as her arrival also saw the departure of many of its experienced retail executives and the introduction of business strategies beyond its core retailing area.

But developments such as the recent appointment of ex-Jigsaw chief Peter Ruis to run the John Lewis chain specifically, and this latest appointment, suggest a back-to-basics mindset at the business.

Analyst view

So what do analysts think of the move? Zoe Mills, Lead Retail Analyst at GlobalData, said: “Jason Tarry was at the helm of Tesco during the crucial development of its Clubcard loyalty scheme, taking the discounters head-on and creating a retail model that its competitors have emulated since. He certainly has the experience and knowhow to rejuvenate the John Lewis Partnership.

“This new challenge for Tarry will require a different tactic to that employed at Tesco, with Marks & Spencer, rather than the discounters, a clear threat to John Lewis’s long-term success. Marks & Spencer is forecast to continue to gradually grow market share in the UK clothing & footwear sector out to 2027, as the retailer’s focus on improved fashion pays off. Indeed, better perceptions of quality have aided sales in recent months and allowed Marks & Spencer to cut back on promotions as shoppers see the worth of purchasing at full price.

“In comparison, John Lewis & Partners’ share is expected to stagnate until 2027 — Tarry will need to adopt a similar strategy to Marks & Spencer to improve quality perception and protect profit margins.”