Cost-cutting at John Lewis as firm eyes major savings

THE John Lewis Partnership warned it would continue to cut costs as it outlined a new growth strategy aimed at reviving profits.

The retail giant, which runs the John Lewis department store chain and Waitrose grocery arm, said it wanted to save £300 million each year by 2022 by further streamlining its head office and operations.

Last year, the company said it aimed to secure £100 million in annual savings.

The announcement comes months after it revealed plans to shut eight John Lewis stores, with the loss of 1,300 jobs, and the closure of four Waitrose stores, in a move which hit 124 jobs. Last month, the group told staff they would not receive a bonus for the first time since 1953 after it dived to a £635 million pre-tax loss for the six months to July, following a £470 million write-down on its stores.

Yesterday, it said it planned to restore the bonus once its annual profits returned to £150 million. The company said it had set a target for profits to reach £200 million in the next two years and £400 million by 2025. Growth is set to be boosted by expansion, with the group revealing plans to secure 40 per cent of its profits from new areas by 2030.

It said it was investing £100 million to rapidly grow its financial services arm, with customers able to secure retail credit across its business from early next year.

The company also said it was pushing forward with plans to expand into housing, highlighting that it had identified 20 potential sites to be used for private housing.