The John Lewis Partnership (JLP) has revealed its transformation plan will take two more years to complete than expected, while revealing a drop in losses over the first half of its financial year.
The employee-owned company, in which staff are known as partners, said that a combination of higher costs due to inflation and a need for greater investment had hit its turnaround timetable.
It was originally scheduled to have been completed in the 2025/26 financial year and deliver greater productivity and efficiency to boost profits following years of disappointing financial performance that has knocked its famous annual bonuses to partners.
The partnership, which comprises the eponymous John Lewis department stores and Waitrose supermarkets, reported a bottom line loss before tax of £56.2m.
That was a 43% improvement on the £99.2m sum in the same six-month period last year.
The group reported a 2% increase in sales across the partnership to £5.8bn.
It credited demand for its beauty and fashion lines but said sales in technology and “big ticket home items” remained subdued given the evolving cost of living crisis.
John Lewis had launched its five year Partnership Plan in 2020.
It targeted a return to profits of £400m through measures to date that have included job losses but has proved more tricky to deliver in the tough economic climate given soaring additional costs – £179m alone last year.
The partnership said on Thursday that achieving its strategy would take precedence over bonus payments, which were not paid for the last financial year.
Partnership chairwoman, Dame Sharon White, said: “The partnership is a unique model that has been tested and come through stronger many times in our 100 year history.
“While change is never easy, and there is a long road ahead, there are reasons for optimism.
“Performance is improving. More customers are shopping with us. Trust in the brands and support for the partnership model remain high.”
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