TIDM45GD
RNS Number : 2644E
Lewis(John) PLC
04 November 2020
John Lewis plc makes the following announcement for John Lewis
Partnership plc,
the ultimate holding company of John Lewis plc.
News release
12.30pm 4 November 2020
JOHN LEWIS PARTNERSHIP ANNOUNCES NEXT PHASE OF HEAD OFFICE
CHANGES
The John Lewis Partnership is today announcing the next phase of
its five-year plan to return the Partnership to sustainable profits
by 2025.
Last month, we published the Partnership Plan , which sees our
business continuing to adapt rapidly to changing shopping habits
and getting closer to customers. We are also expanding in new areas
outside retail where we believe our values can be a force for
good.
The first two years of the Plan focus on strengthening our
Waitrose and John Lewis retail businesses, backed by GBP1bn
investments in customer service and experience in store and online.
This will require the Partnership to become a leaner, simpler and
faster business. The Plan set out a target to make GBP300m in
annual savings by 2022 through operational efficiencies throughout
the business.
A key part of our efficiency plan is to create an agile, and
flexible head office that is even closer to customers and frontline
Partners. We have shown through the pandemic how well we can work
at pace, and we want this to continue. This next phase of
efficiency improvements builds on changes begun in October
2019.
We propose to reduce the size of our Head Office operations by
up to 1,500 roles between now and April 2021. We will do this by
simplifying how we work and delayering our structures. The changes
will save another GBP50m on top of GBP50m of recent efficiencies, a
significant contribution to our GBP300m target.
How we will support Partners
This is a difficult decision for the Partnership to make and we
will be consulting with affected Partners about the proposals.
Wherever possible, we will seek to find new roles in the
Partnership for Partners whose roles become redundant.
For Partners who are unable to find new roles, we will provide
them with a market leading redundancy support and funds for
retraining. This includes up to GBP3,000 towards a recognised
qualification or course for up to two years for any Partner with
two years' service or more*.
Executive changes
We are also announcing today that Patrick Lewis, Executive
Director, Finance has decided to leave the Partnership at the end
of this year following a long and distinguished 26-year career with
the Partnership.
Patrick will be succeeded by Bérangère Michel, currently
Executive Director, Customer Service, and former Finance Director
for John Lewis. Bérangère joined the Partnership in 2008, and the
Executive Team in February 2020, and has 20 years of leadership
experience in finance.
As part of the changes to Head Office, the size of the Executive
Team will also reduce as we will not recruit a new Executive
Director for Customer Service. Instead those responsibilities will
transfer to James Bailey, Executive Director for Waitrose and Pippa
Wicks, Executive Director for John Lewis.
Sharon White, Chairman of the John Lewis Partnership, said: "Our
Partnership Plan sets a course to create a thriving and sustainable
business for the future. To achieve this we must be agile and able
to adapt quickly to the changing needs of our customers."
"Losing Partners is incredibly hard as an employee-owned
business. Wherever possible, we will seek to find new roles in the
Partnership and we'll provide the best support and retraining
opportunities for Partners who leave us."
"It has been a privilege and pleasure to work with Patrick. He
is the best of the Partnership and personifies our purpose and our
values. His determined drive to build the financial strength of the
business has granted us opportunity to emerge stronger from the
Covid crisis. Patrick told me a while ago of his wish to leave the
Partnership to seek new opportunities. I'm very grateful to him for
agreeing to stay until we'd been able to identify a successor."
"I am delighted that Bérangère has agreed to succeed Patrick as
Executive Director for Finance. Bérangère brings 20 years of
leadership experience in finance, including three years as Finance
Director for John Lewis. She is passionate about the Partnership,
and what it means to be a Partner, and will do a brilliant
job."
Patrick Lewis, Executive Director of Finance, said: "I've felt
very lucky to be part of a leadership team in such an extraordinary
organisation. I'm immensely proud of the role the Partnership plays
in demonstrating a better way of doing business, and hugely
grateful for the unstinting support I've had from colleagues over
such a long period in furthering that goal. I'm delighted that
Bérangère will be stepping into the role, bringing with her both a
deep understanding and commitment to the Partnership, and valuable
financial experience."
Bérangère Michel, Executive Director of Customer Service, said:
"The whole Partnership will miss Patrick, who has done a fantastic
job in putting our business on strong financial footing. I look
forward to continuing this work to ensure the Partnership Plan is a
success."
-ENDS-
Notes to editors
* How we will support Partners
For those Partners made redundant, the expanded Retraining Fund
put in place in the summer has been maintained. This will
contribute up to GBP3,000 towards a recognised qualification or
course for up to two years for any Partner with two years' service
or more. Partners will be given access to a three-month support
programme with an outplacement specialist to help with CV writing
and interview skills. In addition to statutory redundancy payments,
Partners who have worked with the business for more than a year
will be eligible for Partnership redundancy pay, which equates to
two weeks' pay for every year of service, regardless of age. Those
with less than one year's service who leave on grounds of
redundancy would receive an ex-gratia tax-free payment equivalent
to one week's contractual pay.
About the John Lewis Partnership
The John Lewis Partnership owns and operates two of Britain's
best-loved retail brands - John Lewis & Partners and Waitrose
& Partners. Started as a radical idea nearly a century ago, the
Partnership is the largest employee-owned business in the UK and
amongst the largest in the world, with over 78,000 employees who
are all Partners in the business. For all intents and purposes, the
Partnership is a social enterprise; the profits made are reinvested
into the business - for customers and Partners. John Lewis &
Partners operates 42 shops plus one outlet across the UK as well as
johnlewis.com . Waitrose & Partners has 335 shops in England,
Scotland, Wales and the Channel Islands, including 61 convenience
branches, and another 27 shops at Welcome Break locations. Waitrose
& Partners exports products to more than 50 countries worldwide
and has 13 shops which operate under licence in the UAE. The
retailer's omnichannel business includes the online grocery
service, Waitrose.com , as well as specialist online shops
including waitrosecellar.com for wine and waitroseflorist.com for
plants and flowers.
Enquires
John Lewis Partnership
Chris Wynn, Partner & Director of Corporate Communications,
07980 242019, chris.wynn@johnlewis.co.uk
Sarah Henderson, Partner & Senior External Communications
Manager, 07764 676036, sarah.henderson@johnlewis.co.uk
Debt investors
Lynn Lochhead, Partner & Head of Treasury and Corporate
Finance, investor.relations@johnlewis.co.uk
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
MSCEAFFLESPEFFA
(END) Dow Jones Newswires
November 04, 2020 07:30 ET (12:30 GMT)
Lewis (j)4.250% (LSE:45GD)
Historical Stock Chart
From Dec 2024 to Jan 2025
Lewis (j)4.250% (LSE:45GD)
Historical Stock Chart
From Jan 2024 to Jan 2025
