John Lewis Partnership has fallen short of its profit targets during the all-important “golden quarter,” as both of its brands, John Lewis and Waitrose, missed their sales expectations.
In an internal memo obtained by The Telegraph, the company attributed the weaker-than-expected sales in the period leading up to Christmas to a combination of lower consumer confidence and weaker market conditions. Additionally, key trading days fell outside the period, which may have further impacted performance.
“Both John Lewis and Waitrose missed their sales targets,” the partnership informed staff. However, despite the miss, the company highlighted that it had outperformed its rivals and praised staff for their efforts, urging them to feel “proud of our performance.”
The results mark a setback for the retailer, which had hoped for a strong performance during the critical shopping period to help it meet its full-year profit goal of £131 million. Last year, John Lewis Partnership returned to profitability for the first time in three years, reporting a pre-tax profit of £56 million, a dramatic turnaround from a £234 million loss the previous year.
The company had been optimistic about a successful golden quarter following the reintroduction of its ‘Never Knowingly Undersold’ price promise in September and an enhanced food offering at Waitrose.
Despite the disappointing results, a spokesperson for John Lewis reassured that the business remains on track to achieve pre-exceptional profits significantly higher than the £42 million reported in 2023-2024. The company is expected to provide a more detailed update on its performance in March.