Following today’s release of John Lewis & Partners’ figures for the 52 weeks ending 25 January 2025; Zoe Mills, lead retail analyst at GlobalData, a leading data and analytics company, offers her view: “Dragged down by a poor H1, when total trading sales fell by 3.4%, H2 was a significant turn of events for John Lewis & Partners, with sales up 3%. These results culminated in FY trading sales being in line with the previous financial year, and the department store retailer should be commended for this turnaround in the second half. This performance has been spearheaded by Peter Ruis, who returned in January 2024, and the reintroduction of its Never Knowingly Undersold (NKU) price promise in September 2024. Profit before tax and exceptional items for the group also rose to £126m (up from £42m the previous year), driven by the Waitrose fascia rather than its department store operations. Yet, if this momentum can be retained despite a challenging economic landscape in 2025, this next financial year should see the department store return to sales growth after two consecutive years of decline.
“Perhaps understandably, given that FY sales only rose 3% for the group (driven by Waitrose & Partners) and that it is not yet clear of choppy waters, the group has decided it will not award its Partnership Bonus once again this year. It is the third year without the Partnership Bonus for its staff, and many will understand the reasoning, namely a focus on increasing overall pay by £114m in 2025. Yet, if John Lewis’ fortunes continue to improve, it will be imperative that this perk returns in its next financial year.
“The department store retailer had an impressive festive period, with sales up 4.1% over the peak eight-week period. We anticipate that John Lewis achieved significant market share gains in the Christmas gifting market, indicative of shoppers looking to trade up to more premium gifting options as they treated their loved ones.
“In H1, John Lewis’ fashion category (including beauty) was its best performing, and the department store has invested further in this area of strength. It launched three new beauty halls during the period: Oxford Street, High Wycombe and Cheadle. This investment is the best focus for the department store retailer. While competition is growing in the beauty sphere, with the expansion of Sephora and Space NK, we expect the health & beauty market to continue to outperform in 2025 as shoppers continue to prioritise their health and wellness.”
