Peter Ruis is stepping down as managing director of John Lewis department stores, less than three years after returning to the retailer in January 2024. His departure, effective at the start of September, comes just days after the group's chair warned staff of "really tough" trading conditions at the retail giant.

The John Lewis Partnership, the employee-owned group that also owns Waitrose, said Ruis is leaving to "pursue new projects" as part of what the group described as an "orderly succession plan." Under the partnership's distinctive ownership model, more than 70,000 staff are co-owners known as partners who share in annual profits, making trading performance a direct matter for the workforce.

Will Kernan, a former chief executive of The White Company who also previously led River Island, will take over as managing director in September. He steps up from a non-executive board position.

Chair Warned of Lower Sales and Higher Costs

Last week, Jason Tarry — chair of the John Lewis Partnership — told staff in an internal magazine that the retailer was bracing for "lower sales and higher costs." The group is preparing for a period of lower sales that are expected to slow its turnaround efforts.

"We have to adjust for an immediate future that we weren't expecting even six months ago, let alone a couple of years ago," Tarry said in an internal interview first reported by the Financial Times.

"It is difficult when things are tough from a sales perspective, but we're holding our nerve around our focus on margin improvement and firm stock control, rather than just trying to chase top-line sales," he added.

Earlier this year, Tarry said the group "remains cautious" amid a "challenging macroeconomic environment," despite posting an increase in sales and profit. The partnership had returned to profitability after reporting a loss in the prior year, but Tarry's latest warnings point to renewed headwinds including pressures on consumer spending and elevated operational costs that have affected retailers across the UK.

Ruis Oversaw Modernisation Programme

Ruis said he will leave the business on a "much stronger footing" after leading a project of "significant investment and modernisation." During his tenure, he oversaw John Lewis' return to its iconic "never knowingly undersold" pledge and spearheaded an £800m store reboot programme.

"We are getting rid of the old stuffy department store and replacing it with something more experiential," he had told The Guardian.

However, John Lewis, which operates 34 department stores across the UK, has lost ground to online competitors in recent years — a pressure mirrored across the wider British department store sector, where established names have struggled to adapt to shifting shopping habits and the growth of e-commerce.

Incoming Chief Strikes Positive Tone

Kernan, John Lewis's incoming managing director, struck an optimistic note upon the announcement of his appointment. "We have significant headroom for growth and I'm looking forward to leading the team to ensure John Lewis remains the country's most trusted and loved retailer, in store and online," he said.

Co-op Also Loses Chair

Elsewhere on the high street, Co-op announced on Monday that its chair Debby White will leave the group, just four months after the departure of chief executive Shirine Khoury-Haq.

White said she is "not in a position" to commit to another three-year term once her current tenure elapses.

In March, Khoury-Haq stepped down following claims of a "toxic culture" within the business — claims she said were not linked to her departure.