The John Lewis Partnership has announced a significant turnaround in its financial performance, reporting a pre-tax profit of £56 million, marking a substantial £290 million improvement

compared to the previous year. This positive result was largely driven by the strong performance of Waitrose, which contributed to the overall growth of the partnership.

While overall partnership sales saw a modest 1% increase to £12.4 billion, Waitrose experienced a notable 5% rise to £7.7 billion, fueled by a record number of customers. However, John Lewis sales saw a slight decline, dropping 4% to £4.8 billion.

In addition to financial gains, the partnership has expanded its customer base, attracting one million new customers, bringing the total to 22.6 million.

Looking ahead, the partnership has outlined plans for significant investment amounting to £542 million, a substantial increase of over 70% compared to the previous year. This investment will primarily focus on modernizing technology, revitalizing stores, and streamlining operational processes.

Sharon White, chairman of the John Lewis Partnership, expressed satisfaction with the progress made, emphasizing the return to profitability and the ability to increase investment in retail businesses. White highlighted the continued support from customers for both Waitrose and John Lewis brands, as well as the dedication of partners in delivering exceptional customer service.

The partnership aims to prioritize reinvestment in retail businesses, including the opening of new Waitrose stores and enhancing the brand offering in John Lewis. Additionally, the partnership confirmed plans to increase partner pay, with an investment of £116 million, resulting in a 10% wage hike, raising the minimum wage to £12.89 in London and £11.55 per hour nationwide. However, partners will not receive a bonus for the third time in four years.

Reacting to the announcement, Robyn Duffy, senior analyst for consumer markets at RSM UK, emphasized the need for positive change under new leadership. CEO Nish Kankiwala's focus on a 'back-to-basics' approach and prioritizing retail operations reflects a return to core values. Duffy highlighted the importance of this strategy in a challenging retail environment, emphasizing the potential for margin improvement and a return to competitiveness.

With renewed focus and investment, John Lewis has the opportunity to reclaim its position in the market, leveraging its strong brand reputation and customer loyalty. As the public favors underdog stories, the partnership remains poised to make a comeback in the retail landscape. Photo by John Lewis store, Cheadle Royal by Peter Turner, Wikimedia commons.