John Lewis : A Chain Of Upmarket Department Stores

1822 WordsMar 13, 20168 Pages
John Lewis is a chain of upmarket department stores operating all over Great Britain, it’s owned by the John Lewis partnership which was founded in 1864, by John Lewis and headquarters in London and with annual revenue of 4.06 billion GBP, John Lewis department stores are doing very well at the moment, with sales figures rising strongly. Whilst retailers elsewhere are struggling, several commentators have been going beyond the marketing factors, behind their success, instead paying closer attention to the firm’s unusual model of ownership and control. John Lewis is one of the few UK companies where bumper bonuses do not provoke a public outcry, all staffs from chairman down to shelf stackers received the same percentage pay-out, which rises or falls in line with its financial fortunes. Last year its staffs received 17% which is the equivalent of around nine weeks pay.it operates differently from normal limited companies, as instead of profits flowing to the shareholders, they flow to staffs in form of annual bonus. This very different style of ownership was established by the businessman John Lewis, who as owner of the firm signed away his right in 1929 to allow future generations of employees to take forward his experiment in industrial democracy, his ideas are set out in the company’s constitution which at its heart has the idea of establishing a better form of business. And the John Lewis constitution also lists a formal mission to maximise the happiness of
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