management blog

John Lewis, the UK department store that also owns supermarket chain Waitrose, has reported annual pre-tax profits of £306.6m. I wouldn’t normally write about profit margins on this blog but John Lewis is unusual in that it is a high street brand that has done relatively well in the downturn despite being a relatively pricey option.

John Lewis is notable because its employees own the company, and partly because of that, the customer service is miles better than many of its competitors. These employees will share £151m bonus. More than that, as my colleague Michael Skapinker wrote earlier this year, it has made this ownership model work where others such as United Airlines have failed.

If you haven’t guessed already, like Michael, I am a big fan of John Lewis and Waitrose. Like many native North Americans living in London, I have often found the customer service culture in the UK wanting. (It’s not as bad as many foreigners think but you don’t always get the sense in this country that the customer is king.) But in my experience, John Lewis and Waitrose are different. The staff are helpful and seem to take a pride in their job that is sorely lacking at so many of their high street competitors. Part of that reason is surely the sense of community that binds management and staff.

So, for employees and managers alike – and one journalist/consumer – that John Lewis is thriving is good news.