JOHN LEWIS bosses have declared that the retailer has got its buzz back — but remained schtum on whether staff would have their cherished bonuses restored.
The employee-owned retail group yesterday toasted a turnaround in fortunes as sales grew and its losses narrowed from £59million to £30million.
Nish Kankiwala, chief executive of the John Lewis Partnership, yesterday said that he also expected profits to “significantly improve” this year.
However, he said that a decision on staff bonuses, which often used to be equivalent to a month or two’s pay, would not be taken until March.
John Lewis has not paid its staff — known as partners — a bonus for three out of the four years of outgoing chair Dame Sharon White’s tenure as it has battled with the aftermath of the pandemic.
Earlier this year, Dame Sharon said bonuses could be paid only when it reported sustainable profits.
Dame Sharon, who unusually did not take part in the results call, will be replaced on Monday by ex-Tesco boss Jason Tarry.
The changing of the guard comes amid signs that its decision to “unashamedly focus on retail” once again has paid off.
It said that it has invested more in stores and customer service after being accused of heavy-handed cost-cutting.
The partnership has been bolstered by strong trading at Waitrose, with boss James Bailey saying the upmarket grocer was on track for the most profitable year for a decade.
It had struggled during the cost of living crisis as shoppers switched to the discounters but easing pressures has boosted its sales by five per cent.
It said that the mix between price increases and shoppers buying more food was evenly split.
Mr Bailey said: “Two million more people shop in Waitrose than two years ago.”
At John Lewis sales were down three per cent to £2billion although it blamed the wider fashion and furniture market slowdown.
Department store head Peter Ruis said the retailer’s decision to revive its Never Knowingly Undersold price promise had already paid off, with strong sales in its beauty and electrical brands.
FEVER STORM HIT
THE boss of Fever-Tree has said its slip in sales was caused by wet weather rather than a social media storm.
The British tonic maker posted a 6 per cent drop in the UK.
Boss Tim Warrillow blamed June’s weather for dampening demand.
Sales have since picked up again.
Mr Warrillow said there was no impact on sales after its logo appeared at the Republican National Convention in July, prompting calls for a boycott.
He said it had a deal with organisers and the storm “passed as quickly as it came.”
FUEL PRICE DROP
THE cost of petrol should keep falling as oil prices dip to a three-year low, says the International Energy Agency.
Wholesale brent crude — $100 a barrel after Russia’s invasion of Ukraine — is now below $70.
The fall is set to go on as China’s economy cools and producers continue to pump more than demand.
The AA reckons average petrol prices should dip to 136p a litre in the coming week, from 199p in 2022.
Labour is expected to introduce the first increase in fuel duty in years at the Budget.
BT logs 2,000 signals of potential cyber attacks every second, the telecoms giant revealed.
It warned of the growing threat from cyber criminals who are scanning web-connected devices more than 1,000 times a day for weaknesses in online systems
400 JOBS AXE AT INEOS OIL DEPOT
AROUND 400 jobs will be lost after Sir Jim Ratcliffe’s Ineos said it will shut down Scotland’s last remaining oil refinery next summer.
Petroineos, a joint venture between Ineos and PetroChina, yesterday said it would have to close Grangemouth and it intends to transform the site into a fuels import terminal.
The firm has been losing around £380,000 a week on the site.
And boss Frank Demay said the push to a low carbon economy meant the site was unlikely to ever turn around losses.
He said: “Demand for key fuels we produce at Grangemouth has already started to decline and, with a ban on new petrol and diesel cars due within the next decade, we foresee the market will shrink further.”
First Minister John Swinney said the closure would create a “significant economic shock”.
A £100million support package will help redundant workers.
However, local MSP Michelle Thomson said there was a “serious offer” from an international buyer.
And Project Willow is working on a potential green overhaul of the oil refinery into sustainable aviation fuels and low-carbon hydrogen.
Ineos also has a petrochemicals plant and pipeline system at Grangemouth that employ 1,500.
SHOPS IN RATE CUT DEMAND
UP to 17,300 shops could be lost in the next decade unless the government overhauls the business rates system, a trade association claims.
The British Retail Consortium said stores pay 7.4 per cent of all UK business taxes — 55 per cent of the sector’s entire pre-tax profits.
It argues business rates are a property tax on struggling high street stores that give online retailers an unfair advantage, and wants a 20 per cent “retail rates corrector” to level the playing field.
BRC boss Helen Dickinson said it would be the best way to achieve the government’s commitment to a tax “fairer for bricks and mortar businesses” and without it more shops will close.
The UK has lost 6,000 in the past five years.
She said: “Our research proves what retailers have known for years — the industry pays more than its fair share of tax.”
NEW MD AT BOOTS
FORMER “Saturday boy” at Boots, Britain’s biggest health and beauty retailer, is to become its managing director.
Anthony Hemmerdinger, head of the firm’s retail operations, will take over as boss from Seb James in November.
Mr Hemmerdinger, who spent six years as chief operating officer at Asda, said: “I am honoured. Boots is one of the UK’s most trusted brands and the place where I began my retail career as a teenager.”