John Lewis boss Paula Nickolds exits and Christmas sales fall

Gross sales at John Lewis & Partners fell 2.3% to £1.13bn year on year and were down 2% like for like in the seven weeks to January 4.

At Waitrose & Partners gross sales, excluding fuel, were down 1.3% to just over £1bn – a result of shop closures – but up 0.4% like for like.

Parent John Lewis Partnership, which is restructuring ahead of the arrival of new chair Sharon White next month, also said department stores managing director  Nickolds will leave next month.

Nickolds’ career at John Lewis has spanned 25 years, the last three of which she has been managing director.

A statement from the retailer said: “After some reflection on the responsibilities of [Nickolds’] proposed new role, we have decided together that the implementation of the Future Partnership structure in February is the right time for her to move on.”

John Lewis Partnership chair Sir Charlie Mayfield has also warned the department store retailer may ditch its annual staff bonus this year – which would mark the first time it has done so in 67 years.

“The partnership board will meet in February to decide whether it is prudent to pay a partnership bonus. The decision will be influenced by our level of profitability, planned investment and maintaining the strength of our balance sheet,” he said.

John Lewis & Partners fashion sales were broadly flat year on year, up 0.1%, while home and electricals and home technology sales declined 3.4% and 4% respectively.

Beauty was a standout performer across the festive period as sales rose 4.7%.

Mayfield said the retailer “saw significant variation in levels of demand with Black Friday sales up 10% on the equivalent period last year, followed by more subdued demand in the subsequent weeks”.

Online sales at Waitrose & Partners rose 16.7% during the period, while John Lewis’ online sales increased 1.4%.

“At the full year, we expect profits in Waitrose & Partners to be broadly in line with last year. In John Lewis & Partners we will reverse the losses incurred in the first half of the year, but profits will be substantially down on last year,” Mayfield said.

“We, therefore, expect that partnership profit before exceptionals will be significantly lower than last year. Our balance sheet and liquidity position are strong and we expect to improve our debt ratio.”