John Lewis Partnership has announced that its transformation plan will take an additional two years to complete, extending the process to 2028.
The delay is attributed to inflation-induced higher costs and greater investment needs. The employee-owned company, which includes John Lewis department stores and Waitrose supermarkets, initially aimed to complete its turnaround by 2025/26 to improve productivity and profitability.
John Lewis reported a pre-tax loss of £56.2 million for the first half of the financial year, marking a 43% improvement compared to the £99.2 million loss during the same period last year.
Overall, sales across the partnership increased by 2% to £5.8 billion. While beauty and fashion lines saw increased demand, sales in technology and high-value home items remained sluggish due to the ongoing cost-of-living crisis.
Launched in 2020, the Partnership Plan aimed for a £400 million profit return, a target that has been challenging to meet due to the difficult economic environment and additional costs, which amounted to £179 million last year alone.