Weak pound to shrink bonuses at John LewisComments Off on Weak pound to shrink bonuses at John Lewis
Chairman Sir Charlie Mayfield said he was “determined to have the firepower” to succeed this year, when a weaker pound is expected to drive up retailers’ costs.
The warning came in a Christmas trading update, which showed that sales in the six weeks to December 31 were up 2.8% at Waitrose and 2.7% at John Lewis, on a same-store basis.
Mayfield said the Waitrose 1 premium brand had performed well at the supermarket, while own-brand fashion was strong at John Lewis.
Overall profit is expected to rise compared to last year following the growth, but trading profit would be “under pressure”, he added.
“This reflects the greater changes taking place across the retail sector. We expect those to quicken, especially in the next 12 months as the effects of weaker sterling feed through.”
Mayfield did not give details on investment plans but said the extra spend would “accelerate aspects” of the group’s strategy, including product innovation and sprucing up existing stores.
“This will involve a period of significant change,” he added.