John Lewis Partnership reports a significant improvement in its financial results for the first half of the year.
- CEO Nish Kankiwala attributes the positive shift to a ‘buzz’ returning among customers.
- The partnership has focused on investment aiming for stronger financial health in the second half.
- Notable growth seen in sectors such as beauty, jewellery, and children’s brands despite overall sales dip.
- Innovations and partnerships have strengthened customer satisfaction and operational efficiency.
The John Lewis Partnership has reported a considerable improvement in its financial performance for the first half of the year. CEO Nish Kankiwala has highlighted a renewed sense of excitement among customers, describing it as the ‘buzz’ returning to the stores. This statement follows the release of promising results which show a notable narrowing of losses.
During a media webinar, Kankiwala, alongside other executives, revealed that the company is on track to achieve significantly higher profits for the full year. The pre-tax loss, excluding exceptional items, was reduced from £57 million to £5 million, marking a 91% reduction year-on-year. This improvement has been attributed to strategic investments made in the first half of the year to ensure a strong finish. Total revenue increased to £5.2 billion, reflecting a 2% growth year-on-year, supported by an improved operating profit margin of 1.2%.
John Lewis made a £0.5 billion investment focused on transformation across its business operations. This financial commitment is expected to yield a significant increase in profit in the coming months. The retailer has successfully revived its signature pledge, ‘Never Knowingly Undersold,’ which has generated a strong customer response and exceptional sales across major channels.
Despite challenging market conditions, some areas within the business performed well. Beauty sales reached record levels with a 7% increase, driven by makeup, fragrance, and new brands. Jewellery and children’s brands also showed resilience, posting a 3% and 7% increase respectively. Additionally, other categories such as cook shops and haberdashery saw notable year-on-year growth of 7% and 25%, respectively.
The company has also made strides in enhancing customer experience and operational efficiency through technology. With investments over £6.4 million in staff training and technology, including mobile payment devices, John Lewis has improved customer service significantly. The implementation of new mobile headsets has optimised staff time, resulting in high customer satisfaction rates and growth in the customer base.
The introduction of new partnerships, such as those with Waterstones and the beauty brand Trinny London, has further broadened John Lewis’s market presence. These collaborations are part of the ongoing strategy to enrich the product offering and customer experience.
John Lewis Partnership’s strategic investments and innovations have placed it on a promising path to financial recovery and growth amidst challenging market circumstances.
