UK: John Lewis Profits Plummet By 43 Per Cent
Department store, John Lewis, has pledged to bring costs down after profits slumped by 43 per cent in the first half of the year. The store, whose slogan is "never knowingly undersold", blames the combined pressure of falling prices for many goods and the continuing growth in costs. Chairman, Sir Stuart Hampson, said he would bring costs down by reducing bureaucracy and improving the use of technology. Despite a 10 per cent increase in sales for the six months to July 29 to £1.9bn, pre-tax profits plummeted to £38.5m at the company's department stores and Waitrose supermarkets. The group has suffered from a string of one-off costs, including £6m to meet new arrangements for accrued holiday pay and start-up costs of a series of major redevelopments. These include the refurbishment of 11 Somerfield stores bought in the Spring and the £80m-plus refurbishment programme at Peter Jones. Sir Stuart said: "The one-off items are largely behind us and we can look forward to the new shops beginning to contribute to the profit which will be their important long-term benefit." He said the group had got off to a sound start in the second half of the year, with comparable sales for the first six weeks 7.4 per cent ahead.
Get full access to all content, just $1 for 30 days
A Message From The Editor
just-style gives you the widest apparel and textile market coverage.
Paid just-style members have unlimited access to all our exclusive content - including 17 years of archives.
It’s our best ever membership offer – just for you.
Leonie Barrie, editor of just-style
Help test our new apparel sourcing tool.
- "Power of the many" drives change at Otto Group
- Hard hit Turkish industry is not knocked out
- China leads US apparel sources with falling prices
- US apparel sector braces for potential cost hikes
- Vietnam grows share of US apparel imports in 2016
- US Q4 in brief – Foot Locker, Nordstrom, Carter's
- JC Penney to close 140 stores amid lower sales
- Inditex and H&M boycott Dhaka Apparel Summit
- Bangladesh government steps in on labour crackdown
- Macy's will "do the right thing", says Lundgren
- When Things Go Wrong - A Practical Guide to Managing Common Problems in Apparel Sourcing
- Outdoor performance apparel 2016: A broader perspective
- Technical textile markets: product developments and innovations, December 2016
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- Global market review of lingerie – forecasts to 2022