The John Lewis Partnership has reported improved financial performance, cutting its pre-tax losses and expecting a significant profit increase for the year.
- Pre-tax losses have been reduced from £59m to £30m due to the company’s effective transformation plan.
- Sales across the partnership, including Waitrose, have risen, with Waitrose experiencing a 5% increase.
- The company gained 500,000 new customers, attributed to strategic investments in technology and quality.
- John Lewis plans to reintroduce its ‘Never Knowingly Undersold’ promise, using AI to ensure competitive pricing.
The John Lewis Partnership is showing signs of financial recovery with an impressive improvement in its half-year results. The company has effectively reduced its pre-tax losses from £59 million to £30 million, and when excluding exceptional items, the losses were drastically decreased from £57 million to just £5 million. This significant turnaround is attributed to the company’s ongoing transformation plan.
During the 26 weeks ending 27 July, the retail partnership reported sales exceeding £5.9 billion, marking a 2% increase from the previous year. Notably, Waitrose, the company’s grocery arm, saw its sales rise by 5%, with an adjusted operating profit increase of £75 million. These figures are indicative of a positive trajectory driven by strategic modifications.
Conversely, John Lewis itself experienced a 3% dip in sales, down to £2 billion, coupled with a £24 million drop in adjusted operating profit. Despite this, the company remains optimistic about its financial recovery, especially during the second half of the year, which typically sees increased profitability due to the festive season.
CEO Nish Kankiwala expressed confidence in the transformation strategy, stating, ‘These results confirm that our transformation plan is working, and we expect profits to grow significantly for the full year.’ He highlighted the company’s investments in quality and service, which have been well-received by customers, leading to a growth in customer satisfaction and a half a million increase in new customers within six months.
The partnership has committed £500 million towards enhancing service delivery, particularly through technological advancements. This strategy forms part of a broader effort to enhance the customer experience and drive sales. As part of these efforts, John Lewis announced the reintroduction of its ‘Never Knowingly Undersold’ pricing strategy, which utilises artificial intelligence to monitor competitors’ prices and ensure value for customers.
John Lewis Partnership’s strategic reforms demonstrate encouraging results, paving the way for a robust financial year ahead.
