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.
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.
