John Lewis Implements Cost-Savings Drive to Combat Growing Losses

John Lewis faced growing losses as its sales rose by only 0.2% to reach £4.94 billion, which was offset by inflation.

Waitrose supermarket sales also fell by 3% to £7.31 billion.

The loss before exceptional items and tax amounted to £78 million, down from a profit of £181 million.

The loss before tax widened to £234 million, mainly due to property write-downs and rising inflation costs.

Despite this, customer numbers increased by 4% to 20.3 million, with a significant rise in Waitrose customers.

John Lewis attributed this to stronger styling and design in its own brand Fashion and Home offer.

While there were some positive aspects, such as maintaining market share and a strong performance from branches, John Lewis trading operating profit fell by £82 million due to trading dynamics and inflation.

John Lewis continues to see strong online growth, with over a quarter of sales now through its app.

The company aims to save roughly £600 million by January 2026 through cost-saving measures.

Despite the ongoing losses, John Lewis has a strong balance sheet with £1 billion in cash and total liquidity of £1.5 billion.

It has also invested in improving digital capabilities and enhancing the in-store experience..

Leave a Reply

Your email address will not be published. Required fields are marked *