John Lewis’ 23% profit drop

John Lewis Partnership has announced a 23% drop in profit for its year ending January 25 2020. John Lewis’ operating profits were down £75m to £40m; it cites weaker sales in Home and Electricals.

In a letter to all partners, chairman Sharon White sets out plans for ‘right sizing’ the store estate for both John Lewis and Waitrose ‘through a combination of new formats and new locations; repurposing and space reductions of existing stores; and closures, where necessary. ‘ Three Waitrose stores (at Helensburgh, Four Oaks and Waterlooville) will close later this year.

Sharon refers to a transformation for the Partnership that is going to take three to five years to show results. She states: ‘We are stepping into a vital new phase for the Partnership and I have no doubt we will come through it stronger.’

The Future Partnership plans (announced last year) will see a closer working relationship between partners in John Lewis and Waitrose with fewer head office roles, which will cut costs. However Sharon emphasises the importance of retaining ‘the distinctive nature of the two brands’.  She also highlights that the Partnership has ‘two of the best loved brands among UK customers’. Waitrose has been voted the Which? supermarket of the year, while John Lewis recently topped a YouGov poll for the high street’s most recommended brand.

John Lewis & Partners Click & Collect
John Lewis & Partners Click & Collect

In her letter to partners, Sharon writes: ‘Every Partner can make a difference this year by focusing relentlessly on service – wherever they are in the business. If we get it right, customers will return to shop with us and we’ll earn their lifelong loyalty.’

Top: John Lewis Oxford Street.

MORE NEWS
Copy of Progressive Preschool featured image (14)
 
BIRA has condemned yesterday’s (30 October, 2024) budget as the most damaging for independent retailers in recent memory. ...
Copy of Progressive Preschool featured image (2)
 
Spring Fair needs your help to bring together a Hall of Fame compilation of memories, pictures and great stories from the show’s 75-year history....
Copy of Progressive Preschool featured image (13)
 
Saladmaster UK, a division of Regal Ware, has announced its membership of the Federation of the European Cookware, Cutlery, and Housewares Industries (FEC). ...
Copy of Progressive Preschool featured image (12)
 
The upcoming Digital Academy event is a unique opportunity for retailers who want to focus on sustainability when ordering their product range....
Copy of Progressive Preschool featured image (11)
 
New research reveals that under half (43%) of families sit down and eat together and a third of people eat their daily meals on the sofa. ...
Copy of Progressive Preschool featured image (10)
 
The award was a result of Lakeland’s Future Ready initiative over the last three years, showcasing transformation and innovative thinking within the business....
Get the latest news sent to your inbox
Subscribe to our daily newsletter

The list doesn't exist! Make sure you have imported the list on the 'Manage List Forms' page.