John Lewis & Partners which owns the John Lewis and Waitrose brands recorded narrower losses before tax by 41% to £59m (US$73.6m) in H2. Before-tax and exceptional item losses came in at £57.3m compared with a loss of £66.8m a year earlier.
Total sales for the group were 2% higher at £5.8bn while revenue was up 3%.
But John Lewis unit sales were down 2% to £2.1bn. The retailer pointed out the fashion segment benefited by customers continuing to “spend on themselves” which resulted in a 3% sales rise for the half-year compared to a year earlier.
Go deeper with GlobalData
Meanwhile, Zoe Mills, lead retail analysts at GlobalData, says the partnership “has succumbed to the pressures of the cost-of-living crisis, as the mid-market player struggled to retain appeal in a retail market plagued by consumers seeking low prices.”
“Indeed, as was noted this time last year, a marked improvement in H2 will be needed to improve its fortunes – something that could be feasible, though challenging, as it comes up against weaker comparatives.”
Mills asserts that while, similar to Next, clothing and beauty experienced a modest uplift, this was offset by lacklustre sales on big-ticket items. Conversely, Marks & Spencer, whose offering is similar, performed better with its Clothing & Home sales up 6% for the 19 weeks to 12 August.
She explains: “The smaller-ticket nature of fashion and beauty ensured shoppers could treat themselves to smaller luxuries despite the need to limit non-essential spending amid the cost-of-living crisis. Yet, the introduction of interest-bearing credit, which is live online and will come to stores from mid-October, is a good way to combat consumers’ hesitancy to make big-ticket purchases, ensuring John Lewis & Partners remain competitive with the likes of Very and Currys – both of which have competitive finance options.”
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataMills also points out physical stores are continuing to outperform online, a thorn in the retailer’s side since it only operates out of 34 stores. “The department store retailer’s success continues to ride on a seamless online proposition.
“Indeed, John Lewis & Partners noted that consumers were drawn to its stores for services, with styling appointments up 27% and nursery consultations up 17%. Replicating this service element online is something it should develop given its limited physical reach in the UK as this will improve the weaker conversion seen online during this period.”
