UK's John Lewis posts $8.37 bn H1 sales as Waitrose hits record sales

The cash generated from operations increased by £30 million to £177 million (~$239 million), strengthening liquidity to £1.5 billion (~$2.03 billion). The group invested £191 million in the first half, with a significant step-up planned in the second half. Despite this momentum, the Partnership posted a loss before tax and exceptionals of £34 million (~$45.9 million), largely due to new taxation costs, including £29 million from the Extended Producer Responsibility packaging levy, and higher National Insurance contributions, the company said in a press release.

“Our clear focus on accelerating investment in our customers and our brands is working: more customers are shopping with us, driving sales, and helping Waitrose and John Lewis outperform their markets. We achieved our highest recorded levels of positive customer satisfaction, a testament to the great service of our Partners,” said Jason Tarry, chairman of the John Lewis Partnership.

“The investments we are making, combined with our plans for peak trading, provide a strong foundation for the remainder of the year. While we are reporting a loss in the first half, we’re well positioned to deliver full year profit growth, which we’ll continue to invest in our customers and Partners,” added Tarry.

Waitrose outperformed the market in the first half, with sales surpassing £4 billion for the first time. Sales grew 6 per cent to £4.1 billion, supported by a 3 per cent rise in volumes, with nearly all growth like-for-like. Customer numbers also increased, with 9 per cent more people shopping at Waitrose compared with two years ago.

Waitrose strengthened its ethical credentials by becoming the first UK supermarket to meet the Better Chicken Commitment, launching 130 new products. It completed seven major refurbishments, opened one new convenience store and two Welcome Break shops, and announced both its first large-format store opening in almost a decade and a new distribution centre.

The adjusted operating profit came in at £110 million, down £3 million, with sales growth and margin progress offsetting £22 million in additional costs from the new EPR packaging levy and higher NICs.

John Lewis sales rose 2 per cent to £2.1 billion, ahead of a market affected by economic uncertainty.

Strategic investments are showing momentum, including the refurbishment of the Liverpool store, enhanced omnichannel services such as ‘deliver from store’ and rapid online fulfilment, and the reinstatement of the century old Never Knowingly Undersold promise, added the release.

ALCHEMPro News Desk (SG)