John Lewis misses festive sales target as turnaround falters
Sales at John Lewis are reported to have fallen short over the key Christmas trading period as middle-class Brits increasingly switch to shops like Marks and Spencer.
According to reports from the Daily Telegraph, sales at Waitrose similarly missed targets.
The employee-owned John Lewis Partnership (JLP) blamed “lower consumer confidence and weaker than expected market confidence” for trading in the month to 21 December, as well as the fact that this trading period missed the pre-Christmas shopping rush.
However, the firm said it had outperformed rivals and that its turnaround is ongoing, saying that staff should be “proud of our performance”, the Daily Telegraph found.
John Lewis is set to report a full set of festive trading results in the next few weeks.
In comparison, peer M&S reported a jump in sales over the key Christmas period. Earlier this year Marks and Spencer said group sales had jumped 5.6 per cent over the 13 weeks to 28 December. Food sales rose 8.9 per cent.
However, clothing and home sales struggled over the period, rising just one per cent. Still, the retailer noted it had seen some of its busiest trading days ever over the period.
John Lewis turnaround
The festive trading will be seen as a mark against its significant turnaround efforts, which began in earnest under the tenureship of Tesco veteran Jason Tarry as chair, who was appointed a tumultuous time under previous chair Dame Sharon White’s control.
The high street giant cut its headcount by 153 roles last September. It also made a multimillion-pound investment in tech and significant internal store changes.
John Lewis also recently brought back its “never knowingly undersold” price promise, which White abandoned.
City AM has contacted John Lewis for comment.