Sir Charlie Mayfield gathered his lieutenants for the John Lewis Partnership 2028 strategy launch, the company chairman tried to balance the bad news with a dose of optimism and reassurance.
He explained that the high street is being dragged through the mud with rampant costs, halving the retail industry’s profits over the last five years. But, the venerable retailer is in a better position than its rivals to face the challenges, and the company’s online business is still growing at a rapid rate, he countered.
However, Mayfield is struggling to create a positive spin on what is happening to profits at John Lewis, which are looking like they will be “close to zero” for the half year, and “substantially” lower over 12 months. A costly IT investment is partly to blame, but market uncertainty, intense discounting from rivals and inflationary pressures are stiffening the challenge for the retail stalwart.
