Thanks to Brexit, John Lewis' Profits Are Down By Half

By Kim Snaith on at

Oh dear; things aren't looking too good for the high street department store. John Lewis has revealed that its profits for the first half of the year have fell by 53.3 per cent.

Speaking to the BBC, the chairman of the John Lewis Partnership, Sir Charlie Mayfield, was quick to blame the store's struggles on Brexit. "We should be under no illusions, Brexit is having an effect on the economy," he said. "Uncertainty is one of the consequences of this, and of course businesses never like uncertainty, because it makes it hard to plan for the future."

The low value of the pound — itself a result of Brexit — has also affected the shop's profits. Stock costs more, meaning profit margins have been lower.

We shouldn't be preparing ourselves for a mass closing down sale just yet, though. Mayfield said that a significant amount of money had been spent this year on reorganising the business, but it should pay off as an investment for the future. He assured that sales numbers are still up, and even though profits may be low, the company has "made some really important changes for the future".  [BBC]