John Lewis managing director Peter Ruis will step down on 6 September, less than three years after returning to the retailer, as its chair warns of lower sales and higher costs in a difficult trading environment.

The John Lewis Partnership said on Monday that Ruis would leave to “pursue new projects” and be replaced by Will Kernan, a non-executive director who has served on the partnership’s board since 2023. Kernan will take up the managing director role in mid-September, ahead of the key Christmas trading period.

The departure follows a warning from partnership chair Jason Tarry that John Lewis was facing “really tough” trading conditions. In an interview with the group’s internal magazine last month, Tarry said the business needed to adjust to an “immediate future” that had not been anticipated six months earlier, while maintaining its focus on margin improvement and stock control.

Ruis returned to John Lewis in January 2024 after previously spending nine years at the retailer, including as buying and brand director. During his second stint, he oversaw investment and modernisation across the department store chain, including the return of its Never Knowingly Undersold price promise, the introduction of new brands and propositions, and changes to its digital platform.

In a statement announcing his departure, Ruis said: “After nearly three years of significant investment and modernisation, the business is now on a much stronger footing.” He added that he was proud of what had been achieved and believed there was “so much more still to come”.

The partnership has described the leadership change as an orderly succession, with Kernan moving from his board role to take charge of the department store business. He previously held senior positions at River Island, The White Company and Wiggle, as well as spending 13 years at New Look in roles including group managing director and chief operating officer.

Kernan said he had “a clear understanding of the John Lewis business” after three years on the partnership’s board and saw “significant headroom for growth”. He will lead a business operating 36 shops alongside its online operation and app.

John Lewis has been pursuing a turnaround after years of pressure on profitability and competition from online retailers. The partnership said in March that underlying profits had increased sufficiently for it to pay its 69,000 employees an annual bonus for the first time in four years, with a £35 million bonus pot.

The leadership change comes as Waitrose, the partnership’s supermarket arm, is also under new management. Tom Denyard, formerly head of Tesco’s online business, became Waitrose managing director in January.

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