Jason Tarry, a dedicated angler, has reportedly spent the summer fishing in various streams. This month, he will succeed Dame Sharon White as chairman of the John Lewis Partnership, allowing him to pursue his passion at the Leckford Estate in Hampshire, a property acquired by the retail mutual in 1929, featuring 11 miles of fly-fishing on the River Test.

Initially, there were discussions about selling the Leckford Estate, but White faced internal pushback, similar to her efforts to alter John Lewis’s employee-owned status by seeking an external investor.

The topic of John Lewis employees enjoying rainbow trout access highlights the significant challenges Tarry will soon face. As a veteran of Tesco with 33 years of experience, Tarry must revitalize two cherished but struggling businesses, notably the John Lewis department store group, which has suffered from a notable and likely permanent shift in consumer behavior. His task is complicated by the company’s unique structure, which restricts equity raising and offers distinctive perks to its “partners.” Additionally, Tarry steps into this role following a period of inconsistent leadership that eroded both financial stability and employee morale. A recent letter to The Gazette, the company’s internal magazine, criticized White’s frequent media engagements, including appearances on shows like the BBC’s Sunday with Laura Kuenssberg.

Some immediate changes might be beneficial, such as abandoning a plan for property development which aimed to create 10,000 rental homes, thereby allowing a greater focus on the primary issue: retail performance. Tarry, who was previously responsible for overhauling Tesco’s commercial policies after a scandal in 2014 and subsequently managed the company’s operations in the UK and Ireland, will likely quickly address situations at Waitrose, where market share losses appear to have stabilized.

However, the remaining 34 department stores represent the core challenges for John Lewis. The business no longer meets the fundamental evaluation for established companies: if it did not exist, would one choose to create it today? The combination of customers moving online and reactive cost reductions has hit these stores particularly hard, with deteriorating service standards reducing the incentive for customers to visit, exacerbating a downward trend. Last year, sales dropped by 4 percent to £4.8 billion, particularly striking considering the average inflation rate hovered around 8 percent.

Despite buoying from the collapse of competitors like Debenhams, John Lewis has faltered. Tarry, who climbed the ranks in Tesco’s general merchandise division, might opt to close underperforming stores and realign the existing ones towards products that customers prefer to experience physically, such as bedding and furniture. However, as one supportive former colleague stated: ‘Even if you put a savior in that position, I’m not confident about the outcome.’

White, with her background as a civil servant, may have been too optimistic for the challenging retail landscape facing the partnership. Conversely, Tarry, a fervent Arsenal supporter who did not pass his math GCSE, represents a stark contrast. He is a seasoned trader who remarked in 2015 to The Grocer magazine that “nothing from a technical standpoint or skill set intimidates me.”

Two critical questions arise: Tesco’s intense work culture and prioritization of shareholder value stand in stark contrast to John Lewis’s refined traditions. Will Tarry, at 57, be able to persuade his often outspoken colleagues to make tough decisions? Moreover, any recovery within the department store group will require innovative thinking and not just financial acumen. Tarry must ensure the basics are addressed; a headhunter suggests he will “get operations to function effectively.” However, does the seventh chairman of the partnership possess the strategic vision necessary to avoid becoming its last? Time will reveal if he can navigate the complexities of this challenging environment.

Regulatory Responses to Big Tech

The founder of Telegram asserts that the app’s logo—a white paper aeroplane—embodies a “free entity” unhindered by borders. The rapid connectivity brought by the mobile digital age has pushed the boundaries of sovereignty, impacting traditional sectors like retail and media. While physical globalization has been declining since 2008, a new generation of tech giants seems increasingly indifferent to the laws and customs of individual nations. A classic example of this attitude was Elon Musk’s remark about the inevitability of civil strife during the UK riots last July.

Governments, having been outmaneuvered by tech firms regarding tax regulations, are now pushing back. Durov faced constraints in France recently, confronted for neglecting to tackle criminal activities on Telegram. Musk’s X, formerly known as Twitter, could face a ban in Brazil due to non-compliance with a Supreme Court’s request for information regarding misinformation claims. The EU has also charged X under its recently implemented Digital Services Act for failing to meet the bloc’s social media standards.

Although figures like Musk are contentious, there is genuine concern about potential government overreach. Numerous confrontations in this arena are anticipated.

Patrick Drahi’s Assets for Sale

Corporate magnate Patrick Drahi always maintained that his last holdings to be sold would be Sotheby’s and his investment in BT. However, he recently sold a minority interest in the auction house and is divesting his 24.5 percent stake in BT to Sunil Bharti Mittal.

According to the Financial Times, Sotheby’s earnings plummeted by 88 percent prior to reaching a deal with Abu Dhabi. This decline, coupled with challenges within Drahi’s broader business interests, raises questions about whether Mittal’s acquisition of BT represents a strategic move or merely an opportunistic acquisition.