John Lewis Turns to U.K. Telecom Regulator as Its Next Chairman

(Bloomberg) --

John Lewis Partnership Plc tapped U.K. telecom watchdog Sharon White as its next chairman, handing the top job at the iconic British department-store chain to an industry outsider at a time of upheaval in the retail business.

White is leaving her job as chief executive officer of regulator Ofcom to join the employee-owned retailer, where she’ll become one of the most prominent black women among U.K. corporate leaders. The move comes as the industry faces a growing crisis, with rival department-store operators Debenhams and House of Fraser undergoing insolvency processes over the past year to stave off collapse.

“I readily recognize that Sharon is not the conventional retail choice,” current John Lewis Chairman Charlie Mayfield said in a statement. “But these are not conventional retail times, nor is the partnership a conventional company.”

During her four years at the industry watchdog, White earned a reputation as a defender of consumers with a focus on strong competition and low prices. She pushed through a legal separation of BT Group Plc’s fixed-line network and spurred Britain’s dominant phone company to invest more in high-speed fiber broadband.

John Lewis, which owns upmarket grocer Waitrose, appeals to middle-class British shoppers with its understated design aesthetic. But like other U.K. bricks-and-mortar retailers, it’s struggling to deal with growth of e-commerce and the rise of discount grocers, as Brexit-related uncertainty undermines consumer confidence.

Employee Bonus

In March, the employee-owned retailer cut its workers’ annual bonus -- often seen as a gauge of the health of the U.K. retail sector -- to the lowest level in more than half a century. The company said it needed to reduce debt, maintain investment and retain cash after profit before the bonus payments fell 45% in the latest year.

Britain’s departure from the European Union raises questions over Ofcom’s future as the body has operated until now within the confines of the bloc’s rules on competition and industrial policy.

A career civil servant, White was second permanent secretary of the Treasury before joining Ofcom in 2015. Her move may come as a surprise to some in the industry, who thought she might use her role as a platform to move into politics. White was seen as a possible candidate to take Mark Carney’s place as the next governor of the Bank of England.

In her new role, White will be paid 990,000 pounds ($1.26 million) a year, according to the John Lewis statement. Mayfield plans to step down after a handover period, probably in early 2020.

To contact the reporter on this story: Thomas Pfeiffer in London at tpfeiffer3@bloomberg.net

To contact the editors responsible for this story: Rebecca Penty at rpenty@bloomberg.net, Thomas Pfeiffer, Eric Pfanner

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