The appointment of a chief executive at John Lewis Partnership – the first time such a role has existed in the legendary retailer’s history – was a bolt from the blue.
However, coming as it did a day ahead of results likely to show a loss as the retailer attempts a turnaround in tough trading conditions, perhaps the news of Nish Kankiwala’s move from a non-executive director at JLP to leading it should not have been such a surprise.
The bigger questions are why, having never had a CEO in more than 100 years in business, the partnership has appointed one now? And why did it turn to former Hovis and Burger King executive Kankiwala?
In the words of partnership chair Dame Sharon White: “The new structure allows me to focus on the preservation of the partnership model and our distinctive character, on the strategy for the partnership and our big commercial choices. Nish will draw on his significant transformation experience to drive performance and profitability day to day.”
With the partnership pursuing a strategy of making its department store and Waitrose divisions more complementary and diversifying into new business areas such as financial services, the expectation is that Kankiwala will be well placed to execute those ambitions.
One industry observer also wonders whether the new structure indicates that White, not a retailer by background, may be feeling the pressure as she seeks to forge a new future for the institution – famous for its unique ownership structure and retail verve that made it an industry bellwether.
Kankiwala’s elevation comes in the wake of the departure of former John Lewis executive director Pippa Wicks, who left last month, reportedly following a culture clash. If so, the hope will be that Kankiwala can bring commercial and change management expertise that fits with the John Lewis ethos.
He will be able to draw upon knowledge gained as a non-exec over the last two years. During that time, White said, he has “developed a deep understanding and appreciation of the partnership model and has provided counsel on our transformation. He will be able to supercharge this in his new role while protecting the partnership’s ethos.”
However, some wonder whether Kankiwala, who has a first-class degree in chemical engineering from University College London, is the best person for such a role.
Retail Week Prospect senior analyst Beth Bloomfield says: “The appointment signals that the partnership continues to be in a state of flux. For several years, it has been restructuring to simplify its management levels and cut costs to restore profitability. But it has continually added new director-level roles at the same time.
”Its leadership has lacked retail expertise, with the business focused on services outside of retail such as build-to-rent housing and finance. At times, this has seemed like a distraction. What JLP needs to do is double down on its strategy for retail and while Kankiwala is seasoned in what looks to be a strong FMCG background, one would question if he is the right person to turn around the business and what the differences in his and the role of the chair will be.”
Substance and intelligence
One person who has worked with him describes him as “a classic FMCG guy, very bright, but he’s not a retailer”.
However, Barracuda Search managing partner Justin Linger, who has dealt with Kankiwala previously, says: ”He’s bloody good. He’s got substance, he’s got the intelligence to do it. I don’t think you need a retailer – look at [former Tesco chief executive] Dave Lewis; it’s not as if he messed up, is it?”
John Lewis points out that Kankiwala’s previous roles include president of Burger King International, “a fast-moving retail business in over 60 countries and with nearly 4,000 restaurants and 120,000 colleagues”. However, his main experience is in FMCG, including at PepsiCo, where he was president of the business in Europe and Africa, and Unilever where he had various roles.
At Hovis, where he was chair and then chief executive, Mumbai-born Kankiwala improved its fortunes by focusing on its baking business and the brand, enabling its sale to private equity house Endless in 2020.
A former colleague says on LinkedIn: “Nish is a very highly capable senior executive. He takes a strategic view of business but is more than able to dig in at an operational level when appropriate.
“He is a high-energy, positive leader with great communication skills. His combination of intellect and strong people skills is a winning one that has resulted in consistent and dramatic performance improvement in the business units he has led.”
Such qualities could be indispensable as John Lewis drives on with transformation in a retail landscape that continues to shift. But some observers are sceptical and maintain John Lewis’ ills would be best addressed by an established retail leader.
However, if Kankiwala can put the business on track, he would have more than justified his historic appointment as JLP’s first chief executive.
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