March 2020 ertonline.co.uk


John Lewis launches strategic review as profi ts plunge


John Lewis has warned it could close shops as a dive in company profi ts forced it to cut staff bonuses and launch a strategic review of the business. The retailer said it needed to reverse its profi t decline


and return to growth through a “transformation” of its operations – this would involve “right sizing” its stores across both the John Lewis and Waitrose brands. The review would include store closures “where necessary” as well as space reduction in existing stores, the retail giant said. Sharon White (pictured right), who took over as Chairman last month, said the Partnership is “stepping into a vital new phase” and that it would come out stronger on the other side of this review period, which was said “could take three to fi ve years to show results”.


That is to be celebrated. And there is great opportunity for retailers who have an intimate understanding of their customers to respond to them in an agile fashion. “Every Partner can make a difference this year by


The conclusions of the review are expected to be announced in the Autumn. This year, staff bonuses have been set at two per cent, the lowest since 1953 when it paid no bonus. “All of us are aware of the challenges in retail,” said Ms White. “New technology means that shoppers have never had so much choice, value and convenience.


focusing relentlessly on service – wherever they are in the business. If we get it right, customers will return to shop with us and we’ll earn their lifelong loyalty.” In Ms White’s statement, she announced that profi ts at the Partnership dropped by 23 per cent from last year to £123 million – the third year in a row that profi ts have fallen. More specifi cally, weaker sales in the Electricals and Home departments were among the drivers of poorer operating profi ts at John Lewis stores, which were down £75 million to £40 million. Ms White added: “We are confi dent that our new


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products and services and focus on outstanding customer service will reinforce the strength of our brands. We are planning for the market to remain volatile, but expect continued cash generation, allowing us to further strengthen our balance sheet and maintain our level of investment.”


The Euronics Showcase returns for 2020


CIH, part of Euronics, has announced that the members-only Euronics Showcase for brands, CIH members and Euronics agents will take place at the NEC, Birmingham on Sunday and Monday 19-20 April 2020. A record number of companies will be supporting the Euronics Showcase in 2020, exhibiting a full range of brown and white goods, domestic appliances and other electrical products. There will be more than 50 brands at the event. In addition, CIH will be hosting a full programme of training sessions for members in its ‘Maximising Your Margin Masterclasses’. These free sessions will cover everything from sales and stock management to social media and marketing. CIH has also recently announced a partnership with the Saracens Mavericks ahead of the 2020 VNSL season, and netball players from the squad will be attending the event and taking part in demonstrations and competitions with visitors. “The Euronics Showcase is an outstanding business opportunity for CIH members,” said Stuart Cook, CEO of CIH. “Last year we attracted more than 1,200 visitors over the two days,” added Mr Cook. “We’re looking to build on that figure for this year’s event, and encourage those retailers interested in being part of Euronics to come along and get a feel for what it’s like to be part of the biggest and best buying group in the country.”


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