Olympics helps John Lewis' profits rocket - ToyNews

Olympics helps John Lewis' profits rocket

Operating profit leaps 188 per cent in H1; online now accounts for a quarter of retailer's sales.
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The London 2012 Olympic Games helped John Lewis’ profits jump during the half year ending July 28th.

Operating profit rose 188.6 per cent to £45.6 million during the period, while gross sales rose 12.8 per cent to £181 million. Like-for-like sales grew by 9.2 per cent year-on-year.

The John Lewis website also saw its sales rise by over 40 per cent. In fact, the online side of its business now accounts for 24 per cent of John Lewis’ total sales.

The department store attributed its success to strong sales of electricals and home technology, and the Olympics.

“A series of events, including the Diamond Jubilee, helped drive sales, with John Lewis' role as the 'Official Department Store of the London 2012 Olympic and Paralympic Games' having a positive impact in the run up to the Games,” read a statement. 

“The strong growth in electricals and home technology was supported by customer confidence in our price matching position, particularly during the digital switchover in London, and the product expertise of our partners, and when compared to last year when the increase in VAT in January 2011 dampened sales.”

Gross sales across the John Lewis Partnership, which includes Waitrose, rose 8.7 per cent to £4.4 billion. Operating profit climbed 46.6 per cent to £163.5 million.

Read ToyNews' report on whether retail discounted Olympics toys too early.

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