Waitrose & Partners and John Lewis & Partners
John Lewis Partnership has plunged to a loss of £234 million (to year end 28th January 2023) and admitted it could not afford to pay staff their traditional annual bonus. Loss before exceptional items and tax was £78m, down from profit of £181m last year, principally due to economic backdrop and inflationary pressures. The write down in the value of Waitrose stores was the biggest item – this is against a profit of £181 milliion last year.
The Group also announced that there would be no annual bonus for partners for the year. Last year, the bonus was worth 3% of salary. However, there was no bonus for the 74,000 partners in 2021 either.
Chair Sharon White said it had been a ‘tough time. However, she maintained the balance sheet remains strong, with £1 billion of cash on hand. She also admitted that some of the group’s problems are self-inflicted.
It is also the case that we had some set-backs. Product supply challenges and a major fire in our Brinklow warehouse hit availability in Waitrose last summer. This was recovered through autumn and availability is now strong,.”
Total Partnership sales were £12.25bn, down 2% with Waitrose sales down 3% to £7.31bn, but John Lewis sales rising to £4.94bn, up 0.2%.
White further added:
We’re showing renewed confidence. A £100m price investment in Waitrose – demonstrating that value with values (quality and sustainability) go hand in hand. John Lewis Horsham has undergone a multimillion pound revamp and is testing new concepts like play spaces for children that will be tested in other stores. Going big this spring on nursery, childrenswear and advice for families.
