By Sarah Young
Margins at its upmarket supermarket chain Waitrose weresqueezed in 2017 as John Lewis tried to keep prices competitivewhile costs rose due to a fall in the value of sterling.
British retailers are battling weak consumer sentiment andcurrency swings due to
This was highlighted last month when two high-profile
John Lewis, which has 49 eponymous department stores and 353Waitrose shops, said it expected more of the same.
"We expect trading to be volatile in 2018/19, withcontinuing economic uncertainty and no let up in competitiveintensity. We therefore anticipate further pressure on profits,"the group said in a statement on Thursday.
However, its competitive position would be stronger thisyear, thanks to changes and investments it made last year.
John Lewis said its profit before partnership bonus, tax andexceptional items plunged 22 percent to 289.2 million pounds(
The employee-owned retailer said its staff, known aspartners, would get a bonus of 5 percent, down from 6 percent.
The profitability of Waitrose dropped as the company decidedto improve its competitiveness by not passing on all costinflation, instead lowering prices on hundreds of products.
Waitrose is facing intense price competition from largersupermarket groups Tesco, Sainsbury's, ASDAand Morrisons, as well as fast-growing Germandiscounters Aldi and Lidl.
John Lewis said its department stores, however, fared betterwith operating profit before exceptional items up 4.5 percent,helped by stronger fashion and electrical sales.(
