The past half year has seen a resurgence for John Lewis, with customers noticing a revitalised atmosphere.
- Despite a challenging market, the company managed to narrow its pre-tax losses significantly.
- Key investments and strategic partnerships have positioned the retailer for a potentially lucrative second half.
- Retail performance was mixed, with strong growth in beauty and children’s brands, albeit an overall sales dip.
- Technological advancements have enhanced customer satisfaction, with notable increases in shop satisfaction scores.
The past half year has seen a resurgence for John Lewis, with customers noticing a revitalised atmosphere. Nish Kankiwala, CEO of John Lewis Partnership, announced a ‘marked improvement’ in the retailer’s financial performance for the 27 weeks ending on 27 July. Customers have reportedly told him that ‘the buzz is back,’ pointing to a renewed sense of energy and engagement in stores.
Despite a challenging market, the company managed to narrow its pre-tax losses significantly. The company reported a substantial reduction in pre-tax losses before exceptional items, improving from £57m to £5m, a 91% year-on-year decrease. Including exceptional items, the loss decreased from £59m to £30m, a 49% reduction compared to the previous year, indicating improved financial health.
Key investments and strategic partnerships have positioned the retailer for a potentially lucrative second half. The retailer has invested heavily in the first half of the year to ensure a fully loaded and impactful second half. With newly formed partnerships with Waterstones and Trinny London, and investments in mobile payment technologies, John Lewis aims to drive future growth. £6.4m has been channelled into training and tech, including new mobile devices for staff, which are contributing to increased operational efficiency.
Retail performance was mixed, with strong growth in beauty and children’s brands, albeit an overall sales dip. Despite a 3% dip in overall sales, John Lewis experienced a surge in beauty sales by 7%, spurred by makeup and new brands. Children’s brands also saw a 7% growth, and although fashion encountered market challenges, there were record sales in lingerie and a 3% rise in jewellery.
Technological advancements have enhanced customer satisfaction, with notable increases in shop satisfaction scores. Over 5,000 mobile devices have been deployed across shops, freeing up 500,000 staff hours, enhancing customer service. Customer satisfaction rates stand at 71%, the highest since 2021, reflecting the positive impact these innovations have had on the shopping experience.
A combination of strategic investments, market adaptation, and technological advancements has positioned John Lewis for a promising future.
