John Lewis profits down

Retailer stands by ?Never Knowingly Undersold? promise even as it hits profits
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John Lewis has said it’ll stand by its ‘Never Knowingly Undersold’ price match scheme, despite the fact that it has eaten in to its profits.

According to Marketing Week, the retailers pre-tax profits were down 18.2 per cent year-on-year for the six months up to the end of June, with the price matching programme costing £9.3 million more than in the same period last year.

Apparently a major factor has been the growth of discounted pricing as a method to lure cash-strapped customers in to stores among John Lewis’ rivals.

Despite this, the John Lewis Partnership has said that it’ll continue to invest in its online business and roll out new stores.

“We are not simply waiting for the recovery, said the JLP’s chairman, Charlie Mayfield. “Instead we have increased the pace of investment and innovation across the Partnership putting us in the best possible position to seize the opportunity created by a rapidly changing retail environment.”

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