The John Lewis Partnership is projecting a significant increase in profits, marking a positive shift in its financial trajectory.
- The company’s pre-tax losses have decreased from £59m to £30m, with sales increasing by 2% to £5.9bn.
- The relaunch of ‘Never Knowingly Undersold’ has led to exceptional sales and increased website traffic, with 55,000 additional daily visits reported.
- Waitrose has experienced a 5% sales growth in the first half, increasing its market share for the first time in two years.
- Enhancements in online and in-store availability have improved customer satisfaction for both John Lewis and Waitrose.
The John Lewis Partnership is expecting a noteworthy boost in profits this year, signalling a positive step in its ongoing turnaround efforts. The company has successfully reduced its pre-tax losses from £59 million to £30 million, alongside a 2% rise in sales, reaching £5.9 billion. This development reflects a conducive shift towards financial stability. Shore Capital analyst Clive Black commended the progress, likening it to a British retail institution emerging from a challenging period.
The ‘Never Knowingly Undersold’ price promise was reintroduced, leveraging AI to match prices with those of 25 other retailers. This strategic move has driven exceptional sales and increased website traffic by 55,000 organic visits each day. Executive Director Peter Ruis noted the extensive impact on various product assortments, including unexpected areas like own-brand bedding.
Waitrose has also contributed to the newfound optimism with a 5% rise in sales for the first half of the year. The upmarket grocer gained market share for the first time in over two years in July, increasing by 0.1 percentage points to 4.5%. Executive Director James Bailey attributed this growth to increased lunchtime trade and strategic price investments, totalling £39 million, aimed at offering better value to customers.
In-store and online availability have been greatly enhanced, addressing previous customer concerns and improving the shopping experience. Waitrose achieved a record availability level of 96.5% in the past six months, up from 96.1% the previous year. John Lewis is also benefiting from increased availability, with new ship-from-store technology ensuring a seamless online shopping experience across its 36 outlets.
Further investments are planned, including Waitrose’s new store openings and updated formats, which are anticipated to solidify its market presence. CEO Nish Kankiwala is confident in these strategies, expecting them to drive significant growth as the company approaches its busiest trading period.
The John Lewis Partnership’s strategic initiatives appear to be yielding positive results, setting a promising outlook for its financial future.
