This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at https://www.theguardian.com/business/2016/oct/25/john-lewis-paula-nickolds-chief-executive-first-female

The article has changed 6 times. There is an RSS feed of changes available.

Version 0 Version 1
John Lewis appoints Paula Nickolds as first female managing director John Lewis appoints Paula Nickolds as first female managing director
(about 4 hours later)
John Lewis has appointed its first female boss, with Paula Nickolds taking over from Andy Street to lead the department store from January. John Lewis has promoted Paula Nickolds, who joined the company as a graduate trainee, to be the first female managing director in the department store group’s 152 year history.
Nickolds, 43, takes the job of managing director after 22 years at the group, which she joined as a graduate trainee working in the haberdashery department of the Oxford Street store. Nickolds, 43, takes over from Andy Street in January. She has worked for the retail group for 22 years, joining as a graduate trainee working in the haberdashery of the Oxford Street store.
After working her way up through the ranks, Nickolds joined the John Lewis management board as buying and brand director in 2013, and is currently commercial director with responsibility for rejuvenating John Lewis’s product ranges and the look and feel of its shops as well as its international partnerships. Heading one of the UK’s biggest and most respected retail brands, Nickolds will be one of only a handful of female bosses in an industry in which more than half of employees are women. Only Véronique Laury, head of B&Q owner Kingfisher, and Katie Bickerstaffe, head of Carphone Dixons’ UK and Irish business, hold comparable roles.
She takes over at a tricky period for the department store, where profits slumped 31% to £32m in the first half of this year as it struggled to adapt to the shift to online shopping. After working her way up through the ranks, Nickolds joined the John Lewis management board as buying and brand director in 2013. She is currently commercial director with responsibility for rejuvenating John Lewis’s product ranges and the look and feel of its shops as well as its international partnerships.
Sir Charlie Mayfield, chairman of the John Lewis Partnership, the department store’s parent group, which also owns Waitrose, said: “At a time of transformation in the retail sector, Paula’s progressive and dynamic leadership is just what’s needed for the next phase of modern retailing.” Nickolds takes over at a tricky period for the department store, where profits slumped 31% to £32m in the first half of this year as it struggled to adapt to the shift to online shopping.
Nickolds said: “As a partner with 22 years’ service, I know just how special the John Lewis Partnership is. Driven by our unique business model, and with innovation in our DNA, I am immensely excited to lead John Lewis on the next stage of our journey.’ She will have to help increase morale and find a way to maintain the group’s quality and service credentials while cutting costs, particularly in stores where sales are falling. Nickolds may also have to consider pruning new store developments and finding new uses for store space that is no longer needed.
Street leaves at the end of this week to pursue his campaign to be mayor of the West Midlands. Dino Rocos, operations director, will lead the department stores group until Nickolds moves to her new role. Sir Charlie Mayfield, chairman of the John Lewis Partnership, the department store’s parent group which also owns Waitrose, said: “At a time of transformation in the retail sector, Paula’s progressive and dynamic leadership is just what’s needed for the next phase of modern retailing.”
Nickolds said: “As a partner with 22 years’ service, I know just how special the John Lewis Partnership is. Driven by our unique business model, and with innovation in our DNA, I am immensely excited to lead John Lewis on the next stage of our journey.”
Former and current John Lewis staff, known as partners because they jointly own the business and take a share in its profits, said Nickolds was “inspirational” and a “role model”.
“Paula has got the partnership in her DNA. She is ferociously bright and a very good people person. She is hugely respected and a woman with outstanding taste,” said one person who knows Nickolds well.
Richard Hyman, the veteran retail analyst, said Nickolds was a great pick to lead the next phase of development at John Lewis because she was an “old fashioned retailer” who was in touch with what customers wanted and would help keep the brand relevant in a tough economic climate.
“Anybody can reduce costs if they compromise on quality or service. It would be a big mistake for John Lewis to jeopardise the single strongest competitive advantage it has which is customer service,” Hyman said.
“The next 18 months are going to be real tough, much tougher than now, and we are really going to see who’s got the vision and financial strength to invest in building sales. John Lewis will need to understand what are the fundamental pillars of its DNA and reinforce those in the marketplace.”
Peter Ruis, the boss of the Jigsaw fashion brand who previously worked with Nickolds at John Lewis, said: “Paula intuitively understands what the customers wants and she’ll want to keep innovating without burning the foundations down - keeping the best of the old with the best of the new.”
Street, another former John Lewis graduate trainee, leaves at the end of this week after nine years as managing director to pursue his campaign to be mayor of the West Midlands. Dino Rocos, operations director, will lead the department store group until Nickolds moves to her new role.
Although most of the plans are already in place, Rocos will have to shepherd the business through the all important Christmas period when the vast majority of John Lewis’s profits are made.