John Lewis Managing Director Peter Ruis Steps Down Amid 'Tough Trading'

Peter Ruis has departed as managing director of John Lewis, having held the position for less than three years. His departure comes weeks after Jason Tarry, chair of the John Lewis Partnership, warned employees of challenging trading conditions, with the company anticipating lower sales and higher costs.

Ruis, who returned to John Lewis as managing director in January 2024 after a previous tenure as the firm's buying director, will remain with the retailer until September 6. Will Kernan, a non-executive board member, is set to take over in mid-September, ahead of the critical peak trading period.

John Lewis described the leadership transition as part of an 'orderly succession plan.' During his time as managing director, Ruis initiated modernization efforts, including an overhaul of the company's 'Never Knowingly Undersold' promise, the introduction of the Topshop brand, and upgrades to its online platform.

"After nearly three years of significant investment and modernisation, the business is now on a much stronger footing," Ruis stated. "I'm so proud of what we've achieved, and there is so much more still to come."

In the year leading up to January, the John Lewis Partnership reported a pre-tax loss of £21 million, a significant shift from the £97 million profit recorded the previous year. This decline was largely attributed to £120 million in one-off costs associated with write-downs of older technology systems. Despite the loss, sales for John Lewis increased by 3% to £4.9 billion, while Waitrose saw a 7% rise to £8.5 billion. Overall underlying annual profits across the business grew by 6%.

Recent restructuring efforts at John Lewis include plans to close desks for gift wrapping and foreign exchange services, a move that puts 200 jobs at risk. The company confirmed it had begun consultations on these redundancies, which would affect specialized gift wrapping in 25 stores and bureau de change services in 30 stores if finalized this autumn. Last year, the John Lewis Partnership reduced its total workforce by 3,300 jobs, bringing the total to 65,700, with approximately 1,500 of those cuts made from John Lewis department stores.

Further strategic changes by the partnership include the closure of its housebuilding business, announced in February, which involved scrapping plans to construct 1,000 homes across three sites. The company has also closed several John Lewis stores in recent years.

In March, the partnership distributed a bonus to its employees for the first time in four years, following the increase in underlying profits. Each partner, including the chair, received a bonus equivalent to 2% of their salary.

Kernan brings extensive retail experience to his new role, having previously served as chief executive of River Island, The White Company, and Wiggle. He also held various senior positions at New Look for 13 years. Most recently, Kernan was chairman of the furniture and kitchen retailer Neptune and joined the John Lewis Partnership board as a non-executive director in 2023.