John Lewis Partnership plc annual report and accounts 2013

Business review Review of performance (continued)

John Lewis

John Lewis gross sales grew strongly through the year up, 13.5% (£448.3m) to £3.78bn despite a market which continued to be challenging. Total like-for-like sales grew by 10.5%. Gross sales per square foot increased by 4.1%, from £801 to £835, and gross sales per FTE increased by 10.0%, from £150,000 to £165,000.

Operating profit grew by 37.2% to £216.7m. Operating margin was up from 5.9% to 7.1% on last year. Operating profit per selling square foot increased by 26.3% from £38 to £48, and operating profit per FTE increased by 33.8%, from £7,100 to £9,500.

Exciting products, knowledgeable customer service and effective marketing, together with our commitment to be Never Knowingly Undersold, all contributed to this success, while the brand was given added impetus by our high profile support for London 2012.

We achieved market share gains in all three of our main categories. Sales in Fashion increased by 9.1%, driven by a mix of own brand, new brand acquisitions and designer collaborations. Home saw good growth of 6.2% and John Lewis now has the second largest home market share in the UK. Electricals and Home Technology (EHT) grew very strongly, up 28.9%, achieving our highest ever market share positions in computers (including tablets), TVs, cameras and both large and small electrical goods, and reflecting the trust customers have in our price-matching position, our Partners’ product knowledge and our strong supplier relationships. In April 2012, John Lewis was voted ‘Britain’s Favourite Electricals Retailer’ by Verdict and also came top in its ‘Customer Service’ category.

Product innovation, quality and value at all price points were central to success in each category. Brand partnerships in EHT, new designer brands such as Grayers, Seasalt and Allegra Hicks in Fashion as well as inspirational ranges from Nick Monro, Bethan Gray and Tilly Hemingway in Home have set the pace for innovation. In own- brand, we launched highly successful ranges such as our designer collaboration with Alice Temperley and House, a wide selection of home furnishings and accessories.

John Lewis Gross sales (£m)

2009  2010  2011  2012  2013

2,811  2,889  3,232  3,329   3,777

John Lewis Gross sales per selling square foot (£)

2009  2010  2011  2012  2013

767  740 808 801 835

John Lewis Gross sales per FTE (£000)

2009  2010  2011  2012  2013

132  136 147 150 165

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