29 March 2024, 06:51
By Furniture News Sept 18, 2020

John Lewis reports H1 loss and reassesses channel balance

The John Lewis Partnership has published its unaudited financial results for H1 2020. Although sales were up +1% overall, shoppers spent more on less profitable lines, leading to a loss across John Lewis and Waitrose of £55m – a similar picture to H1 2019, but, says chairman Sharon White, "a creditable performance in the circumstances, and ahead of expectations".

At John Lewis, online sales growth was strong at +73%, helping to offset the impact of shop closures – overall sales were down -10% YoY. The business has taken the decision not to reopen eight stores, but says that sales momentum is starting to build in the reopened stores, with sales down around -30% YoY (also ahead of expectations).

Unsurprisingly, the stores in retail parks, which are down by around -15%, are doing better than those in city centres (especially London, which is down around -40%).

Online business now accounts for more than 60% of sales, from 40% before the pandemic. Before the pandemic, the retailer believed that shops contributed around £6 of every £10 spent online, says Sharon, who believes that the figure nowadays is, on average, around £3. 

With the partnership's new strategy taking shape, the early weeks of trading in H2 have been encouraging, says Sharon, who believes that the most likely full-year outcome will be a small loss or profit. Partners will receive no bonus until the business is on a stronger footing.

In John Lewis, the new Home collection has launched, and a bigger revamp for this key category is set for next spring.

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