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John Lewis Partnership plc Annual Report and Accounts 2014


KEY PERFORMANCE INDICATORS (KPIs)


We use a range of key performance indicators (KPIs) to measure and monitor our progress.


Across the Partnership, we focus on a number of KPIs to identify trends in the trading performance of both Waitrose and John Lewis. These KPIs are designed to help us measure and understand our operational performance.


GROSS SALES GROWTH (%)


Definition GROSS SALES GROWTH Percentage increase in gross sales during the reporting period. Gross sales is defined on page 89.


LIKE-FOR-LIKE SALES Like-for-like sales is a measure of the year-on-year branch and online sales growth, excluding VAT as well as removing the impact of branch openings and closures. This measure indicates the underlying sales performance on a consistent basis.


Why we use this measure Sales growth is a key retail measure, and we use it to establish how the John Lewis Partnership is performing against the overall market. It also measures our aim to achieve long-term sustainable growth.


Commentary Both Waitrose and John Lewis grew sales well ahead of their respective markets, increasing their market share. Waitrose outperformed the Kantar Grocery Market by 5.8% and John Lewis outperformed the BRC Retail Index by 4.3%.


How we performed GROSS SALES GROWTH (%) 6.5%


10.6% 6.4% 9.3% 6.6%


2010


2011 LIKE-FOR-LIKE (%)


Waitrose +5.1% John Lewis +6.4%


* * Excludes petrol sales OPERATING MARGIN (%)


Definition Operating profit before exceptional item expressed as a percentage of revenue.


Why we use this measure Operating margin is an indicator of profitability, evaluating the Partnership’s pricing strategy and operating efficiency.


Commentary Operating margin before the exceptional item has decreased, principally due to the year-on-year increase in pension operating costs and specific restructuring costs in John Lewis. After including the exceptional item, margin reduced to 4.7%.


How we performed (%)


5.8% 5.9% 5.1%5.4% 5.2%


20122013


2014


2010


2011


2012 2013*


2014 * Restated for the implementation of 1AS 19 revised


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