John Lewis Partnership plc annual report and accounts 2013

Chairman’s statement

This has been a good year for the Partnership with growth in sales and profit above our expectations. Both Waitrose and John Lewis gained market share for what is now the fourth consecutive year. As a result I am delighted that 84,700 Partners received a bonus of 17%, equivalent to nearly 9 weeks’ pay.

We were encouraged by the acceleration in the rate of sales growth during the year, particularly in the final quarter. Although the market remains challenging, the Partnership has adapted quickly and successfully and we saw the benefits this year. We have stepped up innovation in new products, there’s been a continuing focus on value and sustained and rapid growth online. This resulted in over 1.5 million more customers choosing to shop with Waitrose or John Lewis than last year.

We see this as a time of significant opportunity in a changing market. Behind the scenes, therefore, there’s a quiet revolution underway in our supply chain, information technology and support functions. Our investment in these areas is up substantially and that commitment continues into 2013/14. In recent years, the Partnership has consciously invested to have the right skills, systems and organisational structures to be able to offer customers what they want in a fast-changing market.

Outlook 2013/14

Although the market remains subdued we see more stability in customer demand and further opportunities to grow market share in both John Lewis and Waitrose. We have seen a good start to 2013/14. After 11 weeks, Partnership gross sales are 9.9% higher than last year. Waitrose gross sales have increased by 8.8% (7.2% like-for-like, excluding petrol) and John Lewis gross sales are 11.9% higher than last year (9.7% like-for-like).

We expect our sales growth to continue this year, albeit less strongly than in 2012/13, and we are planning a significant step up in total investment, with a particular focus on our supply chain, technology and systems. These investments are central to our strategy of remaining at the forefront of changes in retail today whilst preparing the Partnership for tomorrow.

Charlie Mayfield

 Chairman

22 April 2013

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