What: John Lewis shifts focus back to retail, dropping the aim for 40% of profits from non-retail ventures by 2030, after posting its first profit in four years.

Why it is important: This strategic pivot underscores a renewed emphasis on the core retail business to drive growth and profitability, responding to the challenges of diversification and aligning with consumer expectations. The company aims to significantly increase profits by 2027/28, reflecting confidence in its retail-focused strategy and financial health.

John Lewis, under CEO Nish Kankiwala, has revised its strategy to concentrate primarily on its retail divisions, moving away from Dame Sharon White's earlier plan to diversify revenue streams. This change comes as the company reports its first profit in four years, choosing to invest heavily in both the John Lewis and Waitrose brands while scrapping previous goals for significant earnings from non-retail activities. The partnership plans a record GBP 542m investment this year to enhance operations, with a major focus on store expansions, refurbishments, and embracing new third-party brands. Additionally, efforts are underway to streamline the business for efficiency and modernize its infrastructure, with significant investments in technology and customer service improvements. Despite eliminating the plan for external funding through business stake sales, the partnership is optimistic about its financial stability and the potential to achieve a tenfold increase in profits by 2027/28. This strategic realignment towards retail, supported by a robust investment plan, marks a pivotal moment for John Lewis as it seeks to adapt to market demands and ensure long-term success.

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