John Lewis Partnership plc annual report and accounts 2012

Waitrose opened 29 new branches (14 supermarkets, 15 convenience) and the Acton ‘dark store’ for online deliveries only. 13 new branches were opened in the second half year. At the year end, the branch estate totalled 272, of which 28 are convenience shops. In September 2011 a two-site trial of Little Waitrose convenience shops started on Shell Petrol forecourts in Watford and Kensington Gardens. Four more Waitrose outlets opened at Welcome Break motorway services during 2011, bringing the total to 16. These strategic partnerships play an important role in the drive to make Waitrose accessible to more people in more places.

The growth of the branch network is supported by a new 300,000 square foot warehouse in Milton Keynes which started delivering to branches at the end of March 2011. A new distribution centre in Leyland, Lancashire, will open in 2013 and will service the planned expansion in the North of England and Scotland.

Planned investments in future growth, including immature space and new formats, have held back profit for the year by £15m. This together with a £1.9m impact relating to a change in the basis of allocation of pension costs, as explained in note 2 to the accounts, resulted in operating profit for the year of £260.6m, being down £14.3m, or 5.2% on last year. Operating margin (excluding VAT) was down from 5.85% to 5.14%, operating profit per square foot was down 11.7%, from £60 to £53, as was operating profit per FTE which decreased by 13.0%, from £10,800 to £9,400.

Graph showing Waitrose Operating profit (£m) and margin

Graph showing Operating profit per square foot (selling space) (£)

Graph showing Operating profit per FTE (£000) 11.3 10.1 9.4 9.4 10.8

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