This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.theguardian.com/business/2015/sep/10/john-lewis-profits-fall-amid-higher-costs-and-competition
The article has changed 3 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| John Lewis profits fall as costs and competition increase | John Lewis profits fall as costs and competition increase |
| (about 1 hour later) | |
| The John Lewis Partnership has suffered a sharp fall in profits as a result of the supermarket price war and a drop in sales in its department stores. | The John Lewis Partnership has suffered a sharp fall in profits as a result of the supermarket price war and a drop in sales in its department stores. |
| JLP, which own the John Lewis department store chain and Waitrose supermarkets, reported a 26% fall in pre-tax profits before one-off items to £96m in the six months to 1 August. | JLP, which own the John Lewis department store chain and Waitrose supermarkets, reported a 26% fall in pre-tax profits before one-off items to £96m in the six months to 1 August. |
| The group’s revenue rose 1.9%, but like-for-like sales at Waitrose fell by 1.3%, its first drop in seven years. At John Lewis, there was a 3% rise in like-for-like sales. | |
| Sir Charlie Mayfield, JLP’s chairman, said it was a difficult market for John Lewis and Waitrose but called the performance solid. He blamed the fall in profits on higher pension charges, restructuring costs at John Lewis, and booking extra holiday pay for staff. | Sir Charlie Mayfield, JLP’s chairman, said it was a difficult market for John Lewis and Waitrose but called the performance solid. He blamed the fall in profits on higher pension charges, restructuring costs at John Lewis, and booking extra holiday pay for staff. |
| “Excluding these, at a trading level our profits were broadly level with last year, despite the turmoil in the grocery market,” he said. | “Excluding these, at a trading level our profits were broadly level with last year, despite the turmoil in the grocery market,” he said. |
| “That reflects tight management of costs and the steps we have taken to strengthen the appeal of our trading brands, where we have seen an encouraging increase in the number of customers shopping with us.” | “That reflects tight management of costs and the steps we have taken to strengthen the appeal of our trading brands, where we have seen an encouraging increase in the number of customers shopping with us.” |
| JLP operates 44 John Lewis and 340 Waitrose stores, and employs almost 90,000 staff. | JLP operates 44 John Lewis and 340 Waitrose stores, and employs almost 90,000 staff. |
| Despite the pressure on the retailer, pre-tax profits at a statutory level grew 73% to £224m, thanks to the sale of a distribution centre in west London, which raised £128m. | Despite the pressure on the retailer, pre-tax profits at a statutory level grew 73% to £224m, thanks to the sale of a distribution centre in west London, which raised £128m. |
| Mayfield said that trading conditions would remain difficultand that there was little sign of any price inflation in the grocery market as supermarkets cut prices. | Mayfield said that trading conditions would remain difficultand that there was little sign of any price inflation in the grocery market as supermarkets cut prices. |
| “However, I expect sales in both Waitrose and John Lewis to perform comparatively well against the market, helped by promising new ranges and online capability,” he said. | “However, I expect sales in both Waitrose and John Lewis to perform comparatively well against the market, helped by promising new ranges and online capability,” he said. |