John Lewis reports halved losses, eyes higher profits ahead

The John Lewis Partnership has reported a significant reduction in losses for the first half of its financial year, with losses halving compared to the previous period. When excluding exceptional items related to restructuring and redundancy costs, the losses have decreased by an impressive 91%, amounting to just £5 million. This positive trend indicates that the company's transformation plan is yielding results, and it anticipates a substantial increase in profits for the full year. In terms of sales performance, Waitrose, the grocery arm of the partnership, experienced a 5% growth in sales during the same period. However, the John Lewis department stores faced a 3% decline in sales, attributed to a challenging external environment for general merchandise. The company is actively working to enhance customer experience and satisfaction, which has reportedly improved as more customers are choosing to shop with them. As part of its strategy, John Lewis is investing in refurbishing its stores, with ongoing projects at key locations including Oxford Street and High Wycombe. Additionally, the company is set to open a new convenience store in Hampton Hill, London. These efforts are aimed at revitalizing the brand and attracting more customers, especially as the crucial Christmas trading period approaches. Looking ahead, the company is optimistic about its performance during the peak trading season and is reintroducing its 'never knowingly undersold' price promise to boost sales. The leadership transition from chair Sharon White to Jason Tarry is also expected to bring fresh perspectives as the partnership aims for a stronger financial future.