The John Lewis Partnership has reported promising half-year results, highlighting a significant reduction in losses and a path towards increased annual profits.
- Pre-tax losses were cut from £59m to £30m, reflecting a strong recovery trajectory.
- Sales exceeded £5.9bn, showcasing a 2% rise compared to the previous year.
- Customer growth and substantial investment in technology signal a positive outlook for future performance.
- The ‘Never Knowingly Undersold’ price promise returns, integrating AI for competitive pricing.
The John Lewis Partnership has demonstrated a robust performance in its mid-year financial results, significantly narrowing its pre-tax losses from £59 million to £30 million. The improvement underscores the effectiveness of its ongoing transformation strategy. Excluding exceptional items, losses were drastically reduced from £57 million to a mere £5 million, reinforcing the Partnership’s promising recovery efforts.
Total sales across the Partnership soared beyond £5.9 billion for the 26 weeks ending on 27 July, marking a 2% increase from the previous year. Waitrose, a key component of the Partnership, experienced a 5% uptick in sales, coupled with an impressive £75 million rise in its adjusted operating profit. This positive trend contrasts with the slight 3% sales dip seen at John Lewis, which is expected to see improvement during the lucrative Christmas period.
As part of its strategic revitalisation, the John Lewis Partnership has successfully attracted 500,000 new customers over the last six months, backed by a substantial £500 million investment, particularly in technological enhancements. The commitment to enhancing quality, service, and value resonates well with consumers, as noted by CEO Nish Kankiwala.
In a bid to reaffirm its dedication to customer satisfaction, John Lewis has reinstated its ‘Never Knowingly Undersold’ pricing strategy. This reimagined initiative will leverage AI technology to ensure competitive pricing by monitoring prices across online and physical retail landscapes. The move aligns with the Partnership’s broader goals of maintaining quality products, excellent service, and competitive pricing in the market.
With strategic measures in place, John Lewis Partnership is poised to achieve a considerably improved financial performance by year-end.
