The John Lewis Partnership, a prominent British retail entity, is navigating challenges such as delays in stock arrivals and increased freight charges, attributed to turmoil in the Red Sea region.
The finance chief of the company highlighted the disturbances caused by the Iran-aligned Houthi militia, which have targeted ships, impeding the flow of trade between Asia and Europe.
Bérangère Michel, addressing the issue, shared, “This is a global issue, so like everybody else in the industry we have seen some delays with some of the stock arriving and freight charges a bit going up.
“She emphasized the company’s commitment to working closely with its suppliers, leveraging long-term strategic partnerships to maintain service quality and customer offerings during these turbulent times.
Michel added, “We tend to have long-term strategic relationships with suppliers, it’s a feature of who we are and in those moments helpful in providing the best offer for customers.”
Michel’s comments came in the wake of the partnership’s announcement that it had returned to profitability in its latest annual report, thanks to an uptick in its food business and effective cost management strategies.
Despite the logistical challenges posed by the Red Sea disruption, she assured that these did not significantly affect the financial outcomes for the year ending January 27.
The situation in the Red Sea has raised alarms across the UK retail sector, with several key players including Next, Pepco Group, Primark, and Matalan expressing concerns over the potential ramifications of these disruptions on their operations.
Additionally, sportswear giant Adidas disclosed that it is facing shipment delays ranging from two to three weeks due to the ongoing crisis, underscoring the widespread impact of the Red Sea disturbances on global supply chains and retail operations.