John Lewis Partnership posts loss despite sales growth and record customer satisfaction
The John Lewis Partnership has announced that sales grew by 4% to £6.2 billion in its first half as customer satisfaction reached its highest recorded level.
In the 26 weeks to 26 July, total revenue grew by 5% to £5.4 billion, although the partnership reported a pre-tax loss of £34 million.
Subscribe to TRBThe loss was mainly attributed to costs not present in the same period last year, including £29 million for the new Extended Producer Responsibility packaging levy and higher National Insurance Contributions.
Waitrose sales topped £4 billion for the first time with a 6% uplift to £4.1 billion and a 3% rise in volumes, with almost all growth like-for-like. Trading was boosted a rise in customer numbers which were up 9% on two years ago.
Meanwhile, John Lewis sales rose 2% to £2.1 billion as the retailer benefited from a sharp focus on its customer proposition and driving growth.
During the period, the partnership accelerated investment in store upgrades, digital services and modernising its technology and supply chain, which resulted in growth in sales, volumes, customer numbers and market share.
Jason Tarry, chairman of the John Lewis Partnership, said: “Our clear focus on accelerating investment in our customers and our brands is working: more customers are shopping with us, driving sales, and helping Waitrose and John Lewis outperform their markets.
“We achieved our highest recorded levels of positive customer satisfaction, a testament to the great service of our partners.”
Looking ahead, the partnership is expecting the macroeconomic environment to remain challenging, but said its plans make it well positioned to deliver full year profit growth.
Tarry added: “The investments we are making, combined with our plans for peak trading, provide a strong foundation for the remainder of the year.
“While we are reporting a loss in the first half, we’re well positioned to deliver full year profit growth, which we’ll continue to invest in our customers and partners.”
