John Lewis Swings Back to Profit After Retail Refocus

The John Lewis Partnership, which owns both John Lewis department stores and Waitrose supermarkets, has emerged from a three-year period of losses by refocusing on its core retail business. This turnaround strategy, spearheaded by outgoing chair Dame Sharon White, prioritised customer offerings and abandoned ambitious targets for non-retail revenue streams.

Previously, the Partnership aimed to generate 40% of its profits from non-retail operations by 2030. However, White pivoted away from this goal in the face of challenging economic conditions. While financial services and build-to-rent ventures remain strategically important, the immediate focus has shifted back to strengthening the core retail experience.

This strategic shift proved successful. The John Lewis Partnership reported a pre-tax profit of £56 million for the year ending January 2024, a significant improvement compared to the £234 million loss incurred the previous year.

Performance varied between the two brands. Waitrose enjoyed a strong 5% sales increase, reaching £7.7 billion, while John Lewis sales dipped by 4% to £4.8 billion. Despite the overall profit gain, the company announced another year without staff bonuses, opting instead to reinvest its profits into further growth.

Since 2021, the Partnership has implemented significant cost-saving measures, achieving a total of £420 million in savings. This focus on operational efficiency will likely continue as the company forecasts an extended turnaround period, potentially lasting until 2027-28.

While Sharon White announced her departure in 2025, expressing pride in her leadership during a critical period, details regarding her successor remain undisclosed. With a renewed focus on retail and a commitment to long-term stability, the John Lewis Partnership seems cautiously optimistic about its future.