The John Lewis Partnership, which owns popular retail brands John Lewis and Waitrose, appears to be making a comeback in terms of profitability. A leaked internal memo has revealed that the company experienced “fantastic” Christmas sales, contributing to higher profits. Furthermore, the implementation of cost-cutting measures has also played a role in boosting the company’s financial performance. As a result of these positive developments, it is likely that the staff bonus will be reinstated, as the company seems to have exceeded its annual profit target of £100 million within just 11 months.
However, it is worth noting that the recovery seems to be primarily driven by Waitrose, the company’s grocery arm, rather than the department stores that sell fashion and beauty products. John Lewis experienced a shortfall in sales due to supply chain issues and a decrease in foot traffic, leading to product shortages and reduced consumer spending. The full extent of the performance of both sectors of the business will be revealed when the official results are announced in March.
Previous financial results released in September indicated that John Lewis was still grappling with challenges, but had started to recover from issues predating the pandemic. In the first half of the financial year, the company achieved a profit of £69 million before factoring in exceptional items, marking a £124 million improvement from the previous year. However, when exceptional items such as redundancy costs were taken into consideration, the company still operated at a loss.
Taken as a whole, the leaked memo and previous financial results suggest that John Lewis is moving in the right direction and may be on track for a successful recovery. The company’s emphasis on cost-cutting measures and its strong performance in the grocery sector have contributed significantly to these positive outcomes.
Useful links:
1. John Lewis Partnership Official Website
2. Waitrose Official Website
