34 John Lewis Partnership plc Annual Report and Accounts 2016 Our financial KPIs


Across the Partnership, we focus on a number of financial 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 performance and reflect the Partnership Aims. Over the coming year, we will review our KPIs to align them with It’s Your Business 2028.


Definition


Increase advantage of Partners Gross sales per average FTE


Gross sales divided by the average number of full time equivalent Partners.


Gross sales per average FTE is an indicator of productivity within the Partnership. A higher result denotes higher productivity.


Gross sales per average FTE increased, reflecting improvements in both Waitrose and John Lewis as the year-on-year sales growths were achieved alongside tight management of headcount.


* 170.7


Gross sales per average FTE £000 182.0 181.6*


179.2 187.1 Why we use this measure Commentary How we have performed


2012


2013 52-week basis. Partnership profit per average FTE


Profit before Partnership Bonus, tax and exceptional items divided by the average number of full time equivalent Partners.


Measures the profit generated per average FTE. This is useful to assess whether we are growing efficiently.


Partnership profit per average FTE decreased compared to last year, entirely due to higher pension costs arising from volatility in the market-driven assumptions, and lower property profits.


*


Partnership profit per average FTE £000 6.7 5.7*


6.9† 6.4 5.2


2014


2015


2016


2012


2013 52-week basis. † Not re-stated for IAS 19 (revised).


Realise market potential Gross sales growth %


Gross sales growth Percentage increase in gross sales during the reporting period. Gross sales is defined on page 109.


Like-for-like sales Like-for-like sales is a measure of the year-on-year branch and online gross sales growth, removing the impact of branch openings and closures. This measure indicates the underlying sales performance on a consistent basis.


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.


In the year, Waitrose and John Lewis grew sales ahead of their respective markets, increasing their market shares. Waitrose outperformed the Kantar Grocery Market by 2.7% and John Lewis outperformed the BRC Retail Index by 1.5%.


6.4


Gross sales growth % 6.6 5.7


9.3 2.5


2014


2015


2016


2012


2013 Like-for-like (%)


2014


2015


Waitrose* -1.3% John Lewis +3.1%


* Excludes petrol sales.


2016


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