The John Lewis Partnership, a major British retailer, reassured investors on Friday that it is still on track for increased profits. This comes after a report in The Telegraph suggested the company might not meet its internal profit goals. The partnership, which owns both John Lewis department stores and Waitrose supermarkets, anticipates “significantly higher” annual profits compared to the previous year.
Internal Targets and Market Challenges
The Telegraph, citing internal documents, reported that the partnership may fall short of its projected profit target of £131 million for the year ending in January 2025. The report attributed this potential shortfall to lower consumer confidence and weaker market conditions. Both John Lewis and Waitrose reportedly missed their sales targets in the period leading up to December 21st, 2024. However, this period does not include the crucial Christmas and New Year sales.
John Lewis Partnership Responds
A spokesperson for the John Lewis Partnership responded to the report, emphasizing that the company remains confident in its financial performance. They reiterated their September statement, which projected full-year pre-exceptional profits significantly above the £42 million reported in 2023/24. The partnership plans to provide a detailed performance update with its full results in March.
Navigating a Difficult Retail Landscape
The John Lewis Partnership has faced numerous challenges in recent years. The COVID-19 pandemic and the subsequent cost of living crisis significantly impacted the retail sector. The department store division, in particular, has been affected, leading to store closures and job cuts.
Turnaround Plan and Leadership Transition
Despite these challenges, the partnership has been implementing a turnaround plan initiated by former chair Sharon White in 2020. This plan focuses on strengthening the appeal of its brands, investing in technology, and streamlining costs. In September 2024, Jason Tarry, a former Tesco executive, succeeded Sharon White as chair of the partnership.
