Greetings department reveals strong start to year as retailer reveals good results
John Lewis’ return to profits has coincided with its good news on the greeting card front as the department store group’s replan is going well.
The announcement yesterday, 14 March, revealed a £42million pre-tax profit in the 52 weeks to 27 January – up from a £78m loss the year before – for the whole John Lewis Partnership, home to Waitrose and John Lewis.
And buyer Jason Billings-Cray is over the moon at the reception to his first card selections, having only joined the greetings department in June 2023.
“We’ve seen a really strong start to the year,” Jason told PG Buzz just a few days after taking part in the GCA’s Dragons Speed Dating event. “I’m really pleased with the reaction to Valentine’s and Mother’s Day – they’re my first selections for cards.
He added that the replan too has started really well and “we’re struggling to keep up with demand”!
Jason commented: “To give a steer on full event results, Waitrose and John Lewis both saw strong growth in Valentine’s card sales. John Lewis’ Valentine’s total event finishing at 5% up, and last week was really strong for us with Mother’s Day 16% up versus the like-for-like week last year.”
“I’m really pleased that the refreshed ranges are going down well, and John Lewis remains a key destination for gifting and seasonal moments.”
As a whole, the partnership’s sales were 1% up on last year at £12.4billion, with total revenue rising 2% to £10.8bn, though John Lewis sales dipped 4% to £4.8bn due to “weaker sales” in home and technology, however, there was a £13m improvement in trading operating profit.
Although the employee-owned business has decided not to pay a bonus to partners, as staff are known, for the third time in four years, it is prioritising investing in base pay and expects to see continued improvement in key financial performance measures.
The statement said: “As employee owners, we have a shared responsibility to ensure the partnership is sustainable into the long-term. We’ve consistently said that, at this point in our transformation, this is best served by investing in our retail businesses and in partners’ base pay. So, after careful consideration we do not believe it would be right to award a partnership bonus this year.”
And the retailer said it is entering a year of significant investment, with £542m planned for the period, much of which would focus on modernising technology, refreshing shops and simplifying how the brand worked.
Dame Sharon White – who steps down as JLP chair in February 2025 after a five-year term – commented: “We have made significant progress in the last year to return the business to profitability and delivered results that allow us to increase investment in our retail businesses. We expect profits to grow further this year.
“This shows our plan is working, while we know there’s much more to do. Our improved performance has been supported by our customers’ love for both brands, with more people choosing to shop with us than ever before, and our partners’ commitment to delivering excellent customer service.
“This year we will unashamedly focus on investing back into our retail businesses for our customers, including opening new Waitrose shops and continuing to modernise our brand offering in John Lewis, while prioritising pay for our partners.”
