John Lewis, the retail partnership that also owns Waitrose supermarkets, has made a return to profit, reporting a pre-tax annual profit of £56m. This is a significant improvement from the previous year’s loss of £234m. However, the company will not be paying its staff a bonus for the second year in a row, instead opting to invest in the business and increase overall pay.
The chain reported that over a million more customers shopped in its stores last year, with spending totaling £12.4bn, an increase of 1% from the previous year. Waitrose saw a particularly strong performance, with sales rising by 5% to reach £7.7bn, thanks to a record number of customers choosing to shop at the supermarket chain.
However, the picture was less rosy for John Lewis stores themselves, where spending fell by 4% to £4.8bn. The company attributed the decline to weaker sales in home and technology, although fashion and beauty products performed strongly.
At the start of the year, John Lewis announced plans to reduce the size of its workforce over the next five years. Despite the cost-cutting measures, the partnership has said that it remains committed to growing the business and investing in its stores.
Overall, the return to profit represents a welcome turnaround for John Lewis, which has faced significant challenges in recent years due to increased competition from online retailers and changes in consumer shopping habits. While the decision to withhold staff bonuses may not be popular, the company’s renewed financial stability will likely be seen as a positive development by both investors and employees alike
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