Sharon White told the employee-owned group’s staff council that it faced making “difficult decisions about stores and about jobs” during what was its “most challenging period” since its inception in the 1920s. Decisions at the group, which runs department stores and the Waitrose supermarket chain, would not be taken lightly, White said, and the business would set itself apart from conventional rivals by showing “humanity” to staff affected. The group has more than 80,000 employees and a turnover of £11.7bn. It operates 50 John Lewis stores and has 338 Waitrose branches. The handover comes at a difficult time for the group: profits at the department store chain have collapsed and staff – called “partners” within its democratic structure – have been warned they could miss out on their annual bonus this year.

The business has not shied away from store closures – last year Waitrose shut 12 unprofitable supermarkets with the loss of 1,100 jobs. The retailer has been struggling to ignite sales growth in recent periods and while it's suffered nowhere near as badly as mid-market department store peers House of Fraser, Beales and Debenhams, it's clearly at a crossroads and needs to do something to boost its turnaround. But White also said there are some areas that are relatively easy to fix. She cited botched orders that cost the firm £23 million in goodwill payments to customers last year and also said winning back lost high-spending shoppers could add £100 million to its profits. There’s still some scepticism about her ability to turn the firm around, however, given her lack of retail experience and the recent exit of a number of senior team members.