THE RETAIL BULLETIN - The home of retail news
Lest we forget
HOME
RETAIL NEWS
RETAIL EVENTS
Fashion
Department Stores
Shopping Centres & Retail Parks
Home & DIY
Electricals
Health & Beauty
General Merchandise
Entertainment
Sports & Leisure
Retail Solutions
Food & Drink
Interviews
RETAIL INSIGHTS
RETAIL SOLUTIONS
ABOUT US
CONTACT US
SUBSCRIBE FOR FREE
John Lewis reports strong festive sales but warns that 'profit is under pressure'

The John Lewis Partnership has posted a 4.9% in Christmas sales following strong performances both at its Waitrose supermarket and John Lewis department store chain.

DEPARTMENT STORES

John Lewis reports strong festive sales but warns that 'profit is under pressure'

The John Lewis Partnership has posted a 4.9% in Christmas sales following strong performances both at its Waitrose supermarket and John Lewis department store chain.

During the six weeks to 31 December, Waitrose’s gross sales excluding fuel rose by 4.8% to £914.9 million with like-for-like sales growth of 2.8%.

Meanwhile, gross sales at John Lewis were up 4.9% to £998.1 million with a 2.7% increase in like-for-like sales.

At John Lewis the channel mix saw a continued shift to online. Shopping on mobile phones was the online channel of choice with sales up 80.9% and accounting for 37% of all traffic. Click & collect sales rose by 14.5%. Shop sales were up, trading well pre-Christmas as last-minute shopping delivered a record week for branches.

Sir Charlie Mayfield, chairman of the John Lewis Partnership, said: "We traded strongly over Christmas with sales up nearly 5% and both Waitrose and John Lewis grew market share.

“Sales were particularly strong in the areas that have been the focus for product innovation this year, such as our Waitrose 1 premium range and John Lewis own-brand fashion.

“Our multi-channel capability has again proved its worth with online accounting for 40% of total sales in John Lewis.”

The retailer said its pre-tax profit before Partnership Bonus and exceptional items for the year to 28 January is expected to be up on last year with lower pension accounting charges offsetting trading pressures on profit.

Its Partnership Board will decide on the level of staff Bonus in March but the company said it is likely to be “significantly lower” than last year due to a challenging market outlook and its focus for investment for the future.

Mayfield added: “Although we expect to report profits up on last year, trading profit is under pressure. This reflects the greater changes taking place across the retail sector. We expect those to quicken, especially in the next 12 months as the effects of weaker Sterling feed through.

“We will now accelerate aspects of our strategy. This will involve a period of significant change, investment and innovation to ensure the Partnership's success."

Email this article to a friend

You need to be logged in to use this feature.

Please log in here

Subscribe For Retail News

RETAIL EVENTS

Omnichannel Futures Conference 2019
Omnichannel Futures Conference 2019
6 February 2019
Cavendish Conference Centre, London WG1 9DT
A truly omnichannel offering requires an understanding of customer behaviour across all shopping channels and how this should impact your overall business strategy
Customer Engagement Conference 2019
Customer Engagement Conference 2019
5 June 2019
Cavendish Conference Centre, London W1
The 10th Annual Retail Customer Engagement Summit
The HR Summit 2019
The HR Summit 2019
Tuesday 8 October 2019
The Cavendish Conference Centre, London W1
The 11th HR Summit 2019, The Cavendish Conference Centre, London W1, 8 October 2019
AI in Retail Conference 2019
AI in Retail Conference 2019
16 October 2019
Cavendish Conference Center, 22 Duchess Mews, London W1G 9DT
Retail marketing is changing pace rapidly by making communication across all platforms personalised, relevant, efficient, and helpful. AI not only helps shoppers find a perfect product but also pre-empts the shopping behaviour and speeds up payment.
Payment Roundtable 2019
Payment Roundtable 2019
6 February 2019
The Cavendish Conference Centre, 22 Duchess Mews, London W1G 9DT
The Retail Bulletin Payment Roundtable will raise debate and discussion centred on but not exclusive to improving the in-store payment process