John Lewis: Ex-boss says changing ownership model would be a tragedy

A former John Lewis boss has said it would be a "tragedy" if the retailer changed its ownership model, which has been in staff hands for 70 years.

Andy Street, managing director from 2007 to 2016, told the BBC's Sunday with Laura Kuenssberg that John Lewis went beyond being a shop.

The firm is considering selling a stake in its business, meaning it would no longer be fully owned by its employees.

It comes after the retailer reported a £234m loss last year.

His comments echo those from brand expert Mary Portas, who wrote an open letter to the partnership this week, urging the leadership to reconsider moves to dilute its current ownership model.

Ms Portas said John Lewis was one of the most "valued, loved, and trusted retail brands" in the country but that it had "let go" of its soul.

Speaking on Sunday about the possible change, Mr Street said: "It would be a tragedy if that occurred because I think John Lewis goes a bit beyond a shop.

"You can buy the same television in other places in truth, but John Lewis was about a way of doing business, showing the market there was a better way almost and that's potentially under threat."

Mr Street urged the retailer's leadership to think about what was at the heart of the business, "what makes it special and hold onto that".

He acknowledged the company's financial difficulties, after staff were told they would not receive their annual bonus this year due to the losses. John Lewis said it had been a "very tough year".

But Mr Street said: "You have to address the underlying point. This was ever the case in the John Lewis model over 150 years, if you can't go to the equity markets you have to trade your way through it.

"Some of the best retailers at the moment - Next, Primark, Selfridges - are proving physical retail can still do that, and that's really the challenge to John Lewis and Waitrose," he added.

Mr Street began working for John Lewis in 1985 after joining as a graduate trainee from university.

He rose through the ranks to lead the partnership before leaving to pursue a career in politics in 2016 and become the Mayor of the West Midlands, a position he currently holds.

In a statement John Lewis said its partnership model is what makes it special and "will always be the heart of our business".

"It has helped us build the strong and well-capitalised business that we have today.

"We keep under review our future funding needs so we have options to fuel the next stage of our growth plan, but nothing is happening in the short term.

"Right now we are focused on continuing to deliver the best possible experience for our customers while improving the performance of our business."