This includes pressures from the cost-of-living crisis which resulted in first-half loss before tax and exceptional items of £57.3m this year and an underlying £77.6m pre-tax loss in the 2022-23 financial year.
The company’s turnaround plan is taking longer than expected – White said that a high requirement for investment as well as inflationary pressures have meant it will take two years longer than expected to revive profit levels.
The cost-of-living crisis with a softer consumer backdrop means John Lewis shoppers are holding off from spending on expensive big-ticket items like white goods and technology. However, they are still spending on cheaper items like fashion and beauty. In Waitrose, inflation has been responsible for the latest rise in sales with average prices rising by 9% whereas the volume of goods sold dropped by 5%.
Profits have been struggling at John Lewis for a number of years amid high costs relating to its vast store estate and the rise in cheaper e-commerce rivals like Amazon. Waitrose has struggled as customers become increasingly price sensitive…
