John Lewis feeling the pain
When you hear news that the bell weather of the UK high street, John Lewis, is suffering from falling sales and profits down 27% for the first half of 2008 then you know we are in trouble. While this will come as no surprise to those who watch the group (as they issue weekly sales updates) the fall in profits to £107.3 million is still a tough pill to swallow. So what is happening on the high street?
The group revealed that operating profits at the John Lewis Partnership operation fell by over 30% to just £21 million, profits at Waitrose by 8% to £102.7 million and pension scheme costs increased by a staggering 19%. All in all it has not been a good 2008 so far for the group and they do not expect any substantial improvement until 2010!
This is just the news that the UK economy did not want to hear, not to mention Gordon Brown and his ministers. As the EU suggested earlier this week, the UK seems to be one of the weakest of the EU members and will likely recover slower than any other member of the EU. Times are tough in the UK and they are about to get a whole lot tougher for many on the high street!
Share this..
Related stories
Do you understand the Financial Services Compensation Scheme?
The Financial Services Compensation Scheme was recently updated by the government in the wake of the Northern Rock collapse and many at the time suggested that it was inadequate. The last few days has seen more and more savers concerned that they may not have the protection they first thought through the scheme. So how does it work?
In simple terms the Financial Services Compensat...
Centrica finally agrees terms for British Energy stake
After months of prolonged negotiations it has been revealed that Centrica will pay EDF around £3.1 billion for a 25% share in British Energy. British Energy was the recipient of a significant takeover battle just a few months ago when the UK government became heavily involved in the eventual outcome. A side deal was originally agreed with Centrica in principle although it has taken some time to a...
Read MoreIrish referendum on the Lisbon Treaty
The Irish population is today voting on the Lisbon Treaty although many people believe that the outcome is already a "done deal" with a positive vote in favour of the Lisbon Treaty highly likely. Despite the fact that the Irish population effectively derailed an earlier attempt to pass the Lisbon Treaty, under pressure from the European Union, the authorities were forced into a second ballot amid...
Read MoreUS jobless figure remains stable
Despite concerns that the US jobless figure would continue to rise for some time to come it has been revealed today that the rate of unemployment in the US remained unchanged at 9.7% during February. This is a welcome relief to investors who had been growing concerned that the US economy was not moving as quickly as many had hoped and indeed might have been slipping back towards recession. Slow...
Read MoreJJB founder buys fitness division for £83 million
David Whelan, the founder of JJB sports, has today confirmed the acquisition of the retailer's fitness clubs for £83.4 million. This is the latest in a number of steps being taken to attempt to secure the long-term future of the sport's retail giant which has hit a difficult patch of late. A number of restructuring measures have already been taken whereby a number of senior staff has left the gro...
Read More