(Sharecast News) – The John Lewis Partnership has pushed backed its recovery plan by two years, blaming record levels of inflation.
The loss-making department store chain, which also owns Waitrose, is focusing on returning to £400m annual profit by 2025/26.

The turnaround – dubbed internally the Partnership Plan – had been slated to take five years. But the group has now pushed back the deadline to 2027/28, after record levels of inflation added £179m to its costs last year.

John Lewis said on Thursday: “The additional costs has sharpened our focus on the partnership’s long-standing productivity challenge.

“A combination of inflationary pressures and greater-than-expected investment requirements for our transformation means it will take a further two years to deliver the Partnership Plan.”

The update came as the firm reported total sales of £5.8bn for the 26 weeks to 29 July, a 2% improvement on the previous year.

Pre-tax losses before exceptional items narrowed by 14% to £57.3m, after a rise in operating profits at Waitrose helped offset a weaker performance at the department stores.

Sales at the upmarket supermarket chain rose 4% to £3.7bn and eased 2% to £2.1bn at John Lewis stores.

However, while prices rose on average 9% at Waitrose, volumes fell 5%. At John Lewis, demand for fashion and beauty items held up, but home and technology sales fell by 5% and 4% respectively as customers held back on big ticket spending.

Chair Sharon White said: “While change is never easy, and there is a long road ahead, there are reasons for optimism. Performance is improving.”

Nish Kankiwala, chief executive, said: “Our transformation to modernise our business is well under way.”

Related articles

US consumer sentiment improves in December

US consumer sentiment improves in December

(Sharecast News) - US consumer sentiment improved in December as worries about inflation receded, according to a survey released on Friday by the University of Michigan. The preliminary index of consumer sentiment ticked up to 69.4 from 61.3 in November and 59.8 in...

Latest Articles

Join our mailing list

Subscribe to our mailing list to receive regular updates!