John Lewis' new five-year plan aims to reach £400m profit by 2025
The John Lewis Partnership – with John Lewis and Waitrose combined - has today revealed its planned “expansion of digital, virtual and delivery services to get closer to customers” to reach £400m profit in five years.
“The Partnership Plan” includes a pledge to recruit young people coming out of the care system, major commitments on cutting waste and net zero carbon by 2035, with “inspirational new services and partnerships to rebalance business beyond retail,” championing equality, wellbeing and sustainability.
The retailer is adapting rapidly to changing shopping habits, while getting closer to customers online and in-store, and it’s expanding into new areas where it can be a “force for good” amidst an uncertain economic outlook. The five-year plan is self-funding, taking in to account uncertain trading.
John Lewis is investing is also investing in more virtual services like personal styling, home design and the John Lewis Virtual Christmas Shop – reaching more customers “through a tap on an app.”
Sharon White, Chairman of the John Lewis Partnership, said: “We’ve seen five years of change in the past five months and Waitrose and John Lewis have responded with great agility. Our plan means the John Lewis Partnership will thrive for the next century, as it has the last.
“We’re adapting successfully to how customers want to shop today, while showing the Partnership is improving lives and building a more sustainable future. We’ll share our success with our customers, Partners - who own the business - and our communities.”
At the forefront of the ‘made to last’ movement, John Lewis aims to ensure its products can be “loved for longer” with commitments including ‘buy back’ or ‘take back’ solutions by 2025.
All raw materials in own-brand products will be from sustainable or recycled sources by 2025, and the company is developing sustainable rental and resale options for customers, while looking after its Partners.
The John Lewis Partnership’s business plan statement, released today, also says: “We are committing that when we expect to reach over £200m profit, we will pay Partners the voluntary Real Living Wage. We also aim to pay a bonus when profits exceed £150m and our debt ratio falls below four times.
“Backed by a renewed focus on service and cost savings, the Partnership aims to see profits reach £200m in the next two years and £400m by 2025. As we’re not owned by shareholders, we can share this success with our Partners, customers, suppliers and communities.
“The Partnership Plan builds on strong momentum in a tough year. We’ve tripled delivery capacity for Waitrose online to over 190,000 weekly slots in just six months. John Lewis is now a 60% online retailer, and has successfully adapted to offer many in-store services online.”