- Waitrose drives profit turnaround
- No bonus for employees, job cuts planned
- Focus on retail investment, pay increases
Waitrose was primarily responsible for the company’s strong financial performance in the previous year.
John Lewis has returned to profitability after a three-year absence; however, its employees continue to be subjected to job cuts and an additional year without a bonus.
Profit of £56 million was reported by the corporation that operates the John Lewis department stores and Waitrose grocery stores, following a loss of £234 million in the preceding fiscal year.
The John Lewis Partnership is owned by partners, who are permanent staff members. The 76,000 employees accustomed to receiving an annual bonus were again let down this year.
This signifies the third occasion since 1953 that the organisation has refrained from disbursing an annual staff incentive.
The company stated, however, that it was investing in its retail operations and employee base pay.
The company estimates that compensation will increase by a record £116 million this year, with two-thirds of employees receiving a 10% rise.
The company failed to address news reports that it would eliminate 11,000 positions over the next five years to save £900 million in its annual results.
Dame Sharon White, chairman of John Lewis, stated that a more streamlined organisation will inevitably reduce the demand for certain positions.
Dame Sharon refrained from specifying which positions or divisions of the organisation would be affected.
She stated that no reduction in personnel is a target.
The return on investment was primarily attributable to Waitrose, as an additional one million consumers, for 22.6 million, utilised the partnership during the previous year.
Profits at Waitrose increased by 19%, whereas those at John Lewis increased by a mere 2%.
Likewise, sales at Waitrose increased by 5% compared to the previous year, whereas John Lewis department store sales decreased by 4%.
The increase in revenue, improved profit margins, and “sustainable productivity improvements” contributed to the profit figures.
Already, £88 million in cost reductions have been realised due to alterations to staff schedules and “simplified means of working.”
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The partnership anticipates a profit increase once more this year as it restructures its business strategy, it said.
John Lewis intends to establish new Waitrose locations, renovate eighty of its current grocery stores, and stock department stores with approximately eighty new brands.
Several product categories experienced sales increases in the past year, including men’s tailoring, which increased by 48%. Additionally, cosmetic product sales increased by 4%.
According to the retailer, one Stanley Cup was sold every 20 minutes. Stanley is a travel mug brand that is heavily endorsed by influencers.
The company added that a £5 lunch offer attracted 22,000 customers to Waitrose locations.
