John Lewis boss Dame Sharon White warns inflation ‘hitting the top line’

White said shoppers across the eponymous department store chain and grocery stablemate Waitrose were “starting to budget” and buying fewer branded ranges as they stock up for the festive season. 

She admitted the shift was “hitting the top line” across the Partnership during the crucial golden quarter.

According to Retail Gazette, White told the Confederation of British Industry Annual Conference: “This is the first Christmas for three years that people get to spend with family, friends and loved ones, and I think people will be really excited to have a proper Christmas. But you can see all sorts of things going on with consumer spending.

“We have got some customers who are doing their shopping early and have booked their Waitrose delivery slots in advance.

“On the other hand, you can see other customers starting to budget, and shopping is more phased. People are sticking more with own-brand, value ranges, and buying fewer branded products.

“For us, inflation is hitting the top line. Customers are more thoughtful about what they are spending, and we are very conscious of our employees.

“What we are seeing is that customers are still spending but they are being much more thoughtful and intentional about how they are spending.”

White reiterated that the difficult trading environment meant it was “going to be tough” for the Partnership to pay a bonus to its staff at the end of its current financial year. 

John Lewis Partnership scrapped its famous partner bonus during the coronavirus crisis but reinstated it last year, handing staff a 3% payout. 

But after suffering widening losses in the six months to July 30, White cautioned that the payment of a bonus this year hinged on delivering “a substantial strengthening of performance, beyond what we usually achieve in the second half”.

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