John Lewis Partnership hails success of turnaround as losses narrow
The John Lewis Partnership has nearly halved its losses in its first half following increased sales at its Waitrose supermarket chain.
In the six months to 27 July, total revenue edged up 2% to £5.2 billion while its pre-tax loss improved from £59 million to £30 million.
The partnership said its transformation programme remains on track as it maintains a laser focus on “brilliant retail”.
Nish Kankiwala, chief executive of the John Lewis Partnership, said: “I want to thank all our partners for their hard work during the half, and thank our customers for supporting our loved brands.
“These results confirm that our transformation plan is working and we expect profits to grow significantly for the full year, a marked improvement from where we were two years ago.”
Waitrose sales increased by 5% in the period with volume growth of over 2% as it spent £39 million on price cuts. It also invested in quality with a collaboration with Yotam Ottolenghi, a refresh of its Waitrose No.1 range, and a partnership with food health company Zoe.
However, sales at John Lewis fell by 3% after poor summer weather impacted fashion sales and the current squeeze on customers’ disposable income led to lower demand for home sales, especially big ticket items.
In the coming months, the partnership will complete refurbishments at nine Waitrose stores and John Lewis stores in Oxford Street, High Wycombe and Cheadle. It will also be opening a new convenience store in Hampton Hill in London.
With most of its profits historically coming in the second half of the year, the John Lewis Partnership said it is confident that it is on track to deliver full year profits “significantly higher” than the prior year.
Kankiwala added: “We continue to invest heavily in quality, service and value, and customers are responding well – with more people shopping with us and customer satisfaction increasing. While we have much more to do, we’re well set up for a positive peak trading period and on target to significantly improve our performance for the full year.”
