John Lewis Chairman Warns of 'Tough' Trading Conditions Amid Turnaround Efforts
Jason Tarry cites subdued market, increased costs, and geopolitical uncertainty as key challenges.
John Lewis Chairman Jason Tarry has informed staff that the company is experiencing "really tough" trading conditions as it continues its turnaround plan. Tarry told the company's internal magazine that these challenges are expected to lead to "lower sales and higher costs."
These difficulties are attributed to a "subdued market" and rising expenses, including a £40 million increase in employer National Insurance Contributions and £13 million in new packaging levies. Tarry noted that the company must adapt to an immediate future that is more challenging than anticipated even six months prior.
The war in the Middle East has also contributed to dampened consumer confidence, with concerns about potential increases in grocery and energy bills, alongside existing rises in fuel prices.
A spokesperson for the John Lewis Partnership confirmed the difficult trading environment, stating, "It’s no secret that trading conditions are challenging right now as people think carefully about their spending."
In response to declining demand, the Partnership has decided to close its bureau de change facilities within its stores. The company has faced scrutiny in recent years, with some observers feeling it lost its direction under former chairman Sharon White, while rival Marks & Spencer has seen increased shopper appeal.