London-based retailer John Lewis and Partners, owner of John Lewis and Waitrose brands reported narrower losses before tax by 41 per cent to £ 59 million in the second half of the current financial year. Before-tax and exceptional item losses came around £ 57.3 million compared to a loss of £ 66.8 million in the previous year.
Despite a rise in total sales of 2 per cent at £ 5.8 billion and revenue up at 3 per cent, John Lewis’ unit sales were down by 2 per cent to £ 2.1 billion pounds. The retailer commented that the fashion segment benefitted from customers willing to spend on themselves resulting in a 3 per cent rise in sales for the half year compared to the previous year.
According to Zoe Mills, retail analyst at GlobalData, the partnership “has succumbed to the pressures of the cost-of-living crisis, as the mid-market player struggled to retain appeal in a retail market plagued by consumers seeking low prices.” As inflation continues to cut across living standards in the UK economy consumers want to spend less on non-essential items in the crisis.
Mills further states that, Marks & Spencer with a similar offering performed better with its clothing and home sales up to 6 per cent for 19 weeks to 12th August.
She explains that “The smaller-ticket nature of fashion and beauty ensured shoppers could treat themselves to smaller luxuries despite the need to limit non-essential spending amid the cost-of-living crisis”.
Similarly, the physical stores are continuing to outperform online as noted by John Lewis & partners As they attempt to replicate this service online, given its limited physical reach in the UK.
