Annual Report and Accounts 2016
John Lewis Partnership plc
41
Our shops are increasingly becoming places of inspiration and leisure destinations. In Birmingham, we opened our first full-line department store for four years, with brand new concepts including our fashion-led lifestyle concept loved&found, and the first ever &Beauty spa. We invested £14m in a brand new Home floor at John Lewis Oxford Street, and across the estate our shops continued to diversify with further third-party catering and service concepts opening this year.
Products
All three product areas saw gross sales growth and market share increases, reflecting the strength of our offer. On a 52-week basis:
a Fashion was up 6.2%, confirming our strategy of combining signature own-labels, an edited selection of brands and exclusive collaborations. Menswear was up 8.8% and Womenswear was up 6.5%
a Sales in Home were up by 4.1%. Our in-house collections including the House and Croft ranges complement the best of design from the industry, and we are building our personalisation offer to allow customers to create bespoke interiors. This year we also launched US brand West Elm at our Oxford Street shop
Fashion Home EHT
a Electricals and Home Technology (EHT) had a much stronger second half, ending the year up 3.0%. Technology sales this year were characterised by increasing customer demand for ‘smart’ products, along with premium and design-focussed technology. Our mobile phone business also continues to win market share in the sim-free market
Product sales growth +6.2% +4.1% +3.0%
Growth
We continued to invest in our distribution infrastructure. Once Magna Park 2 is fully operational, it will provide customers with combined online orders for hanging fashion and small items so they receive fewer separate parcels. Magna Park 3 brings the distribution of our larger products to the Milton Keynes area.
Overseas, we are continuing to build a premium John Lewis brand through shop-in-shops, where our successful ventures in Singapore, the Philippines and South Korea will be joined by Dubai and Holland announced this year.
Our my John Lewis programme increased members by 32% to 1.8 million customers, and we continued to grow customer numbers.
John Lewis Financial Services continues to play an important role in the business, and commissions grew by 22%.
In 2016, we will open two shops in Leeds and Chelmsford, two major distribution centres in Milton Keynes and invest in significant changes to our technology infrastructure.
Charter in Leeds
John Lewis, Leeds City Council and Hammerson signed an Employment and Skills Charter in October 2015, marking a commitment to helping Leeds residents access more than 1,000 new employment opportunities as part of the £165 million Victoria Gate development
John Lewis opens in Birmingham
John Lewis Birmingham opened in September and at 250,000 sq ft is our largest shop to have opened in four years. Several brand new services and concepts launched in Birmingham, including our new fashion and lifestyle concept
loved&found and our first ever John Lewis branded spa, &Beauty. The shop has key energy saving features such as LED lighting and low-carbon heating and cooling systems
It’s Your Performance
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