Dame Sharon White, Chairperson of John Lewis Partnership, has pledged a dedication to enhancing the retail experience within the iconic department store chain.
However, this move comes amidst the partnership’s decision to withhold staff bonuses for the third time in four years, despite announcing a return to profit.
Marking a notable turnaround, John Lewis disclosed a pre-tax profit of £56 million for the fiscal year ending January, a stark contrast to the £234 million loss incurred in the previous year. This financial feat, the first profit recorded since the onset of the pandemic, follows a modest revenue increase of 2 percent to £10.8 billion. However, the company’s total debt saw a marginal uptick from £1.7 billion to £1.8 billion.
Dame Sharon underscored the strides made in steering the business back to profitability, emphasising a commitment to bolstering investments in retail endeavours tailored to enriching the customer experience. She articulated plans to streamline operations, augment shopping facilities, and modernise brand offerings across John Lewis outlets and Waitrose supermarkets.
Bonuses are axed
Despite the financial resurgence, employees were notified of the absence of an annual bonus, with management citing a collective obligation to secure the partnership’s long-term sustainability. This marks the second consecutive year and only the third instance since 1953 that staff have missed out on bonuses.
The partnership’s renewed focus on retail underscores a departure from earlier expansion plans outlined by Dame Sharon upon assuming her role. Previously, the company had mulled ventures into garden centres, rental properties, and secondhand goods marketplaces.
At present, John Lewis is entrenched in a comprehensive restructuring initiative aimed at slashing £900 million in costs, a move designed to facilitate store revamps and fortify financial resilience. The company is poised to refurbish 80 Waitrose stores over the next three years, with cost-saving measures already yielding dividends, including an £88 million reduction in expenses for the fiscal year ending January.
Potential job cuts are on the horizon
Looking ahead, the partnership is bracing for potential job cuts as part of broader cost-cutting endeavours, with upwards of 11,000 roles potentially on the chopping block. This realignment underscores a strategic shift away from diversification pursuits that had long been championed within the organisation.
While the partnership continues to harbour ambitions of broadening its business portfolio to encompass housing and financial services, economic uncertainties have prompted a recalibration of timelines and targets.
As John Lewis endeavours to fortify its standing in the retail landscape, the resolve to reinvigorate its core operations underscores a commitment to enduring excellence amidst evolving market dynamics.
Amelia Brand is the Editor for HRreview, and host of the HR in Review podcast series. With a Master’s degree in Legal and Political Theory, her particular interests within HR include employment law, DE&I, and wellbeing within the workplace. Prior to working with HRreview, Amelia was Sub-Editor of a magazine, and Editor of the Environmental Justice Project at University College London, writing and overseeing articles into UCL’s weekly newsletter. Her previous academic work has focused on philosophy, politics and law, with a special focus on how artificial intelligence will feature in the future.
