John Lewis, the department store owned by its staff, has been named best British retailer by the consumer group Which? in its first awards.

High levels of customer satisfaction ensured that the co-operative chain, whose motto ‘never knowingly undersold’ covers everything from duvets to perfume, triumphed over rivals including Marks & Spencer and Aldi.

Which? announced that although John Lewis was not the best for price and convenience, its products were usually of excellent quality and so delivered good value for money. The award caps a strong year for John Lewis, whose 68,000 partners take a share of its profits with an annual bonus. The business has made bumper profits and is expanding its food division Waitrose, which was also shortlisted with M&S and Aldi.

The award was one of 10 Which? accolades handed out to companies in sectors ranging from finance to motoring by the BBC newscaster Fiona Bruce at a ceremony in the British Museum.

In an award voted for by 5,000 Which? members, the Yorke Arms at Ramsgill in Nidderdale clinched the award for best small independent restaurant of the year. Its chef Frances Atkin, described by Which? as one of the best female cooks in the country, was unable to collect the award because the restaurant has been hit by the recent flooding.

Richard Lambert, director general of the Confederation of British Industry, said consumer goods had changed beyond recognition since the Consumers' Association was founded in 1957. Standards had been raised for consumers because of the end of a deferential society, globalisation, and the internet, he said. In the past, Lambert said, a company that did a rotten job could often contain that dissatisfaction, but today that dissatisfaction could be spread across the world within a few hours. He added: "I am sure that in the future, these awards will be seen as the Oscars that businesses want to win."

Topics