John Lewis shines again

Graham_Devon

I'm starting to really like what I hear about this company, even though I never use them!.

John Lewis have announce a 17% bonus will be given to all staff this year as they report higher profits.

This is what I like about this company, it's (reported as) a 17% rise for everyone, regardless of their status, position etc. Just a straight 17% of salary. Everyone get's the same.

Is John Lewis the model others should be following? They just don't appear to be greedy. They provide what I'm led to believe is good quality goods, with good quality service ans seemingly they look after their staff too.

Is this model the one others should be following? You wouldn't see Tesco's doing this for example, it would all be weighted at the top while squeezing the bottom for everything it's worth.

http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/9914686/John-Lewis-staff-get-bonus-worth-17pc-of-salary.html

grizzly1911

Graham_Devon wrote: »

I'm starting to really like what I hear about this company, even though I never use them!.

John Lewis have announce a 17% bonus will be given to all staff this year as they report higher profits.

This is what I like about this company, it's (reported as) a 17% rise for everyone, regardless of their status, position etc. Just a straight 17% of salary. Everyone get's the same.

Is John Lewis the model others should be following? They just don't appear to be greedy. They provide what I'm led to believe is good quality goods, with good quality service ans seemingly they look after their staff too.

Is this model the one others should be following? You wouldn't see Tesco's doing this for example, it would all be weighted at the top while squeezing the bottom for everything it's worth.

http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/9914686/John-Lewis-staff-get-bonus-worth-17pc-of-salary.html

The JLP model has been well regarded since I was kid. I think it was about 9% last year IIRC, but probably haven't.

Whilst they have nice top end food I think they are a priced high (they don't get used for the main weekly shop) but you do get nice stores, nice staff and lots of them. The fact that Tescos isn't much cheaper and the experience IMO poor in comparison (a@Ts) speaks volumes.

I buy quite a lot of "tech stuff " and household small household electricals from them as they have good service, competitive prices(they do honour price commitment obligations if you follow the rules) and I can get click and collect from a very convenient Waitrose. Free next day delivery and I can pick it up when I want. My wife buys clothes and bits and bobs from their when she sees good stuff on offer. They have a good returns service, for unsuitable stuff via a reverse click and collect process.

I must say the Waitrose store staff always seem, older, relaxed and seem to move at a pace to reflect that.

angrypirate

Its quite simply a partnership. Its a company owned by its employees. There are a number of other companies following this model and they are doing well too. Employees feel a sense of ownership, empowerment and they have the knowledge that if they perform well, they get rewarded.

Mr._Pricklepants

Graham_Devon wrote: »

I'm starting to really like what I hear about this company, even though I never use them!.

I only use them to buy the odd white goods/audio/video stuff, but it's indeed a business model to like and support.
Probably a bit pricier than the equivalent at amazon/play/pixmania/etc... but I don't mind paying that bit extra to support a British business paying what they owe in corporation tax and a well treated workforce.

dryhat

JL is indeed a business model to be admired and has been for many decades.

As an aside... I live in the most expensive part of wales. A rural/semi-rural area dotted with small towns and pretty villages.
Perfect waitrose country.

Yet the nearest waitrose was situated several miles away in a sh1tty part of the sh1ttiest town in the area.
Now that is commitment to a cause.

(However, they have recently just opened a store in the most expensive town in the area)

Ionkontrol

Easily the best shopping experience.
Waitrose is a haven compared to other supermarkets, clean wide aisles, lots of very friendly helpful staff and good food, albeit more expensive.

Tesco looks like Tenko in comparison.

andyroberts1967

I love Waitrose/John Lewis for all shopping, electrical and food. JL price match any land based retailer on electrical items, and they also price match all Tesco goods that are branded e.g Heinz, Cadburys etc.(excluding promotions) This makes it a lot easier to shop there knowing you're getting good deals.

Thrugelmir

Yet only a few weeks ago.

John Lewis, Britain's biggest department store, is culling 325 managerial positions, despite strong sales growth in 2012.
There are four levels of management at John Lewis's stores - a managing director, a steering group, department managers and section managers. The job cuts are understood to affect the third level of management, and will open up roles at the steering group level.

There's more to this story than the headline bonus rates.

IronWolf

It's an interesting model, public companies often try to mimic it somewhat with share incentive schemes, but it just doesn't work as well.

LittleMax

Indeed - running a business for the benefit of shareholders does not usually deliver the best service for customers.

N1AK

Graham_Devon wrote: »

Is John Lewis the model others should be following? They just don't appear to be greedy. They provide what I'm led to believe is good quality goods, with good quality service ans seemingly they look after their staff too.

Is this model the one others should be following? You wouldn't see Tesco's doing this for example, it would all be weighted at the top while squeezing the bottom for everything it's worth.

In short: You obviously don't understand that John Lewis is a partnership and thus owned by the employees.

Giving themselves a bonus is exactly the same as Tesco's paying a dividend to its share-holders (the owners) which, shock horror, they do every year.

There's a lot to learn from Waitrose and how they operate but you'll need to learn more about them before you can put it in context.