Operational Highlights

Waitrose

• 19 new branches opened (11 supermarkets and eight convenience shops)
• Selling space increased by 5.2%
• 4,700 new and improved products launched
• Online sales grew by 49%

John Lewis

• Four new shops (one new format shop and three 'John Lewis at home' shops)
• Strong growth of johnlewis.com
• Click & collect in all John Lewis shops and 193 Waitrose shops
• Significant market share gains in each of our three main categories

Partnership Highlights

• Net 3,800 new jobs created
• Invested £551m in benefits to our Partners, including Partnership Bonus, pensions, Partner discount, catering subsidy, long service leave, leisure spending and the running of our five holiday centres
• £125m one-off additional cash contribution in January 2013 to final salary pension scheme

Charlie Mayfield, Chairman of John Lewis Partnership, commented:

'This has been a good year for the Partnership with growth in sales and profit above our expectations. Both Waitrose and John Lewis gained market share for what is now the fourth consecutive year. As a result I am delighted that 84,700 Partners will receive a bonus of 17%, equivalent to nearly 9 weeks' pay.

We were encouraged by the acceleration in the rate of sales growth during the year, particularly in the final quarter. Although the market remains challenging, the Partnership has adapted quickly and successfully and we saw the benefits this year. We have stepped up innovation in new products, there's been a continuing focus on value and sustained and rapid growth online. This resulted in over 1.5 million more customers choosing to shop with Waitrose or John Lewis than last year.

We see this as a time of significant opportunity in a changing market. Behind the scenes, therefore, there's a quiet revolution underway in our supply chain, IT and support functions. Our investment in these areas is up substantially and that commitment continues into 2013. In recent years, the Partnership has consciously invested to have the right skills, systems and organisational structures to be able to offer customers what they want in a fast-changing market.'

2013/14 Outlook

Although the market remains subdued we see more stability in customer demand and further opportunities to grow market share in both John Lewis and Waitrose. We have seen a good start to 2013/14. After five weeks, Partnership gross sales are 10.5% higher than last year. Waitrose gross sales have increased by 8.1% (6.4% like-for-like, excluding petrol) and John Lewis gross sales are 16.0% higher than last year (13.7% like-for-like).

We expect our sales growth to continue this year, albeit less strongly than in 2012/13, and we are planning a significant step up in total investment, with a particular focus on our supply chain, technology and systems. These investments are central to our strategy of remaining at the forefront of changes in retail today whilst preparing the Partnership for tomorrow.