We own Christmas: the man behind John Lewis

How has Street got it right where M&S and others have got it wrong? ‘By sticking to what we’re good at. At the start of the recession, people told me to de-spec our goods, cut the number of sales staff, and give up our “Never knowingly undersold” commitment. But I said no. We have to be loyal to the things our customers value. Consistency is everything.’

That’s not to say he hasn’t cut back, as hundreds of department managers know to their cost. He has also requested better terms from suppliers. ‘We have not ducked the tough decisions.’ The man who was president of the Conservative Association at Oxford and co-owns a holiday home in West Wales with Tory MP Michael Fabricant has a ruthless streak.

Street adds that he has ‘invested where we need to. We’ve become more contemporary and fashionable with new brands, such as Polo Ralph Lauren in menswear and new collaborations with Alice Temperley in womenswear. Our own label John Lewis & Co was on the catwalk at London Collections: Men. We’ve also invested in online sales.’

One third of John Lewis’ Christmas sales will be online this year, the highest proportion for any department store. In a few years’ time, Street reckons that figure will rise to half. That’s not too shabby when you consider that he is under pressure on price from etailers Amazon and Apple, that, unlike John Lewis, have in the recent past paid little or no UK corporation tax. ‘The tax situation is unfair and should change,’ says Street before hastily adding: ‘David Cameron is making a good start by using his chairmanship of the G8 to reform global tax laws and level the playing field.’

With such healthy online growth, you’d think that Street would be giving up on bricks and mortar. Quite the opposite. He’s spending hundreds of millions of pounds opening 20 new stores. A new shop in Ashford, Kent, has just opened. It will be followed by new flagships in Leeds and Birmingham, Westfield shopping centre in Shepherd’s Bush, and smaller stores in Basingstoke, Chelmsford, Oxford and York. The Birmingham store is close to Street’s heart. He hails from the West Midlands and splits his time between London, where John Lewis is headquartered, and a flat in central Birmingham. His parents, who were both scientists, still live in Solihull and Street campaigns to drum up new business in the West Midlands. He credits his parents, who wanted him to become a doctor, for ‘instilling in me a sense of social responsibility, no question about it’.

The Westfield Shepherd’s Bush store, which builds on the success of the one in Stratford, will be a £30 million, four-storey 230,000sq ft shop that will stock over 350,000 lines including fashion, home and technology. It will open in 2017. ‘We’re lucky that we only have 40 shops in great places. We still have big catchments that we are not serving. As economic growth returns, we can spread our wings.’

After a wretched few years of low or no growth, Street believes in the high street and Britain. ‘Given the seismic changes in retailing in Britain and the way new technology is creating big winners, only an idiot would take their eye off the ball here in the UK.’

Some stores have gone bust and more will follow, but new alternatives will spring up in their place. ‘Those that provide very good local services in good locations will be fine. Look for the things that the internet cannot do — estate agency, coffee shops, nail bars, beauty salons, hairdressers, the customer-facing side of financial services. There’s nothing wrong with those services,’ says Street.

John Lewis is also expanding into new areas, notably broadband, insurance and, lately, energy. In Bristol it is trialling a scheme to sell energy-efficiency products to reduce household gas and electricity consumption. Could John Lewis go one step further and become an energy provider? Customers who loathe the big six energy providers would surely sign up in their millions. ‘Never say never,’ says Street.

You would think the man who loves Christmas so much he is prepared to freeze his tinsel balls off posing for pictures on the roof of his Oxford Street store on a soggy Monday evening would love everything about Christmas. But he’s dreading the one thing every child looks forward to: snow. ‘If snow falls on the first Saturday in December, it’s the worst thing that can happen. No one goes to the shops.’ The only snow ‘Mr Christmas’ wants to see this month is at his holiday cottage in Wales where he will arrive on Christmas Eve, just as the doors to his stores close and the grand total on the tills reads £600 million.

BUMPER BONUSES, DISCOUNT HOLIDAYS AND FREE CAKE 10 reasons to work for John Lewis

1 All ‘partners’ (employees) are co-owners of John Lewis and receive a share of the business’ profits.

2 The group’s 85,500 partners took home bonuses worth nine weeks’ pay last year.

3 Any partner may stand for election to the John Lewis Council, the forum where partners hold the board to account for its decisions.

4 Partners are entitled to an annual education subsidy, which means they can claim back the price of extracurricular activities including sports, art and cultural pursuits.

5 If partners have worked for John Lewis for more than 25 years, they are eligible for six months’ paid leave. The Partnership also runs a scheme called the Golden Jubilee Trust, which allows any partner to work for a charity on a full-time or part-time secondment for up to six months, funded totally by the business.

6 Every shop serves homemade cakes to partners during their afternoon tea break.

7 Partners have access to John Lewis’ clubs and societies, which cover activities ranging from music and drama to golf and gliding.

8 Partners gain free entry to National Trust properties, Tate exhibitions and Royal Academy exhibitions.

9 John Lewis owns a country house in Berkshire, where partners can stay at subsidised rates. The house is said to be the inspiration for Toad Hall in The Wind in the Willows.

10 The biggest staff bonus was 24 per cent, which was awarded in 1979, 1987 and 1988.