John Lewis has said its plan to return to profit will take two years longer after it reported further losses for the first half of the year.
The High Street giant, which also owns Waitrose, said rising business costs and larger than expected investment requirements meant that its recovery plan would not be finished until 2028.
The group’s pre-tax losses narrowed to £59m for the first half of 2023.
The group’s pre-tax losses narrowed to £59m for the first half of 2023.
In 2020, John Lewis launched its “Partnership Plan” with the aim of returning a £400m profit by 2025-26, but said was now going to take until 2027-28 due to a “combination of inflationary pressures and greater than expected investment requirements”.
The department store has faced tough competition in recent years on the High Street, resulting in a series of store closures, while its supermarket chain Waitrose has underperformed Tesco and Aldi as shoppers hunt for cheaper food due to the higher cost of living.
For the first half of this year, Waitrose saw the value of sales rise by 4%, but the supermarket said this was driven by prices for its goods jumping 9% and the actual amount of products sold had actually fallen.
Customers at John Lewis department stores were spending “more on themselves”, the company said, with its sales in its beauty and fashion departments up, partly driven by new brands including JoJo Maman Bébé and Le Specs.
But the group said shoppers were being “more cautious” over buying technology products and so-called big ticket items for their homes.
John Lewis has said its plan to return to profit will take two years longer after it reported further losses for the first half of the year.
The group’s pre-tax losses narrowed to £59m for the first half of 2023.
The High Street giant, which also owns Waitrose, said rising business costs and larger than expected investment requirements meant that its recovery plan would not be finished until 2028.
In 2020, John Lewis launched its “Partnership Plan” with the aim of returning a £400m profit by 2025-26, but said was now going to take until 2027-28 due to a “combination of inflationary pressures and greater than expected investment requirements”.
The group’s pre-tax losses narrowed to £59m for the first half of 2023.
The group’s pre-tax losses narrowed to £59m for the first half of 2023.
In 2020, John Lewis launched its “Partnership Plan” with the aim of returning a £400m profit by 2025-26, but said was now going to take until 2027-28 due to a “combination of inflationary pressures and greater than expected investment requirements”.
The department store has faced tough competition in recent years on the High Street, resulting in a series of store closures, while its supermarket chain Waitrose has underperformed Tesco and Aldi as shoppers hunt for cheaper food due to the higher cost of living.
For the first half of this year, Waitrose saw the value of sales rise by 4%, but the supermarket said this was driven by prices for its goods jumping 9% and the actual amount of products sold had actually fallen.
Customers at John Lewis department stores were spending “more on themselves”, the company said, with its sales in its beauty and fashion departments up, partly driven by new brands including JoJo Maman Bébé and Le Specs.
But the group said shoppers were being “more cautious” over buying technology products and so-called big ticket items for their homes.
#John #Lewis #recovery #plan #years #longer
Note:- (Not all news on the site expresses the point of view of the site, but we transmit this news automatically and translate it through programmatic technology on the site and not from a human editor. The content is auto-generated from a syndicated feed.))
